Resolution conditions in respect of financial institutions and holding companies

(1) The resolution conditions in respect of a financial institution that is a subsidiary undertaking of a superordinate undertaking supervised on a consolidated basis are satisfied where the conditions referred to in section 62(1) are satisfied both in respect of the financial institution and in respect of the superordinate undertaking. Section 62(2) applies correspondingly.
(2) The resolution conditions in respect of a financial holding company, a mixed financial holding company, a mixed holding company, a parent financial holding company in a Member State, an EU parent financial holding company, a mixed parent financial holding company in a Member State, or an EU parent mixed financial holding company are satisfied where the conditions referred to in section 62(1) are satisfied in respect of one of the aforementioned holding companies.
(3) By way of derogation from subsection (2), the resolution authority may also direct resolution action in respect of a holding company referred to in subsection (2) where 1. the conditions referred to in section 62(1) are satisfied in respect of one or more subsidiary undertakings of that holding company, provided that the subsidiary undertakings are institutions that are not themselves resolution entities, 2. the assets and liabilities of the subsidiary undertaking or undertakings referred to in point 1 are such that their failure could trigger a threat to the viability of the resolution group as a whole, 3. resolution action in respect of that holding company is necessary for the resolution of one or more subsidiary undertakings referred to in point 1, or for the resolution of the resolution group as a whole, and 4. that holding company is a resolution entity.
(4) The intermediate financial holding company is to be designated as a resolution entity in the resolution plan, and resolution action for the purpose of group resolution under subsection (2) or subsection (3) may be directed only in respect of the intermediate financial holding company, and not in respect of the mixed holding company, where the subsidiary institutions of a mixed holding company are held, directly or indirectly, by an intermediate financial holding company.
(5) The resolution authority may take resolution action in respect of a central body and all credit institutions permanently affiliated to it that are part of the same resolution group, where that resolution group as a whole satisfies the conditions under section 62(1).