Commission Delegated Regulation (EU) 2016/1075 of 23 March 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of recovery plans, resolution plans and group resolution plans, the minimum criteria that the competent authority is to assess as regards recovery plans and group recovery plans, the conditions for group financial support, the requirements for independent valuers, the contractual recognition of write-down and conversion powers, the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges (Text with EEA relevance)

• Published date: 08 July 2016
• Subject Matter: politica economica,política económica,politique économique
• Official Gazette Publication: Gazzetta ufficiale dell'Unione europea, L 184, 8 luglio 2016,Diario Oficial de la Unión Europea, L 184, 8 de julio de 2016,Journal officiel de l'Union européenne, L 184, 8 juillet 2016

2016R1075 — EN — 08.07.2016 — 000.001

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►B COMMISSION DELEGATED REGULATION (EU) 2016/1075 of 23 March 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of recovery plans, resolution plans and group resolution plans, the minimum criteria that the competent authority is to assess as regards recovery plans and group recovery plans, the conditions for group financial support, the requirements for independent valuers, the contractual recognition of write-down and conversion powers, the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges (Text with EEA relevance) (OJ L 184 8.7.2016, p. 1)

Corrected by:

►C1 Corrigendum, OJ L 205, 30.7.2016, p. 27 (2016/1075)

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▼B

▼C1

COMMISSION DELEGATED REGULATION (EU) 2016/1075

of 23 March 2016

supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of recovery plans, resolution plans and group resolution plans, the minimum criteria that the competent authority is to assess as regards recovery plans and group recovery plans, the conditions for group financial support, the requirements for independent valuers, the contractual recognition of write-down and conversion powers, the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges

▼B

(Text with EEA relevance)

CHAPTER I

COMMON PROVISIONS AND RECOVERY PLANS

SECTION I

Common provisions

Article 1

Subject matter

This Regulation further specifies:

(1) the information to be contained in an individual recovery plan and, in accordance with paragraphs 5 and 6 of Article 7 of Directive 2014/59/EU, in a group recovery plan;

(2) the minimum criteria that the competent authority is to assess with regard to both individual and group recovery plans, in accordance with paragraph 8 of Article 6 of Directive 2014/59/EU;

(3) the contents of resolution plans required for institutions that are not part of a group subject to consolidated supervision pursuant to Articles 111 and 112 of Directive 2013/36/EU, and the contents of resolution plans required for groups, in accordance, respectively, with Articles 10 and 13 of Directive 2014/59/EU;

(4) the matters and criteria to be examined for the assessment of the resolvability of institutions or groups, provided for, respectively in paragraph 4 of Article 15, and paragraph 2 of Article 16 of the Directive 2014/59/EU;

(5) the conditions set out in points (a), (c), (e) and (i) of Article 23(1) of Directive 2014/59/EU with regard to financial support by a group entity in accordance with Article 19 of that Directive;

(6) the circumstances in which a person is independent from the resolution authority and the institution or entity referred to in point (b), (c) or (d) of paragraph 1 of Article 1 of Directive 2014/59/EU for the purposes of paragraph 1 of Article 36 of that Directive and of Article 74 thereof;

(7) the list of liabilities to which the exclusion from the obligation to include the contractual term referred to in paragraph 1 of Article 55 of Directive 2014/59/EU applies and the contents of the contractual term required in that paragraph;

(8) the procedures and contents relating to the notifications referred to in paragraph 1, 2 and 3 of Article 81 of Directive 2014/59/EU and to the notice of suspension referred to in Article 83 of that Directive;

(9) detailed rules on setting up and operational functioning of the resolution colleges for the performance of the tasks referred to in paragraph 1 of Article 88 of Directive 2014/59/EU.

Points (1), (2), (3) and (4) above are subject to the application of any simplified obligations determined in accordance with Article 4 of Directive 2014/59/EU.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘individual recovery plan’ means any of the following:

(a) a recovery plan drawn up in accordance with Article 5(1) of Directive 2014/59/EU by an institution that is not part of a group subject to consolidated supervision pursuant to Articles 111 and 112 of Directive 2013/36/EU;

(b) a recovery plan drawn up in accordance with Article 7(2) of Directive 2014/59/EU by a subsidiary of an EU parent undertaking;

(2) ‘resolution strategy’ means a set of resolution actions provided for in a resolution plan or group resolution plan;

(3) ‘preferred resolution strategy’ a resolution strategy capable of best achieving the resolution objectives set out in Article 31 of Directive 2014/59/EU given the structure and the business model of the institution or group, and the resolution regimes applicable to legal entities in a group;

(4) ‘qualifying eligible liabilities’ means eligible liabilities which satisfy the conditions set forth in Article 45(4) of Directive 2014/59/EU in order to be included in the amount of own funds and eligible liabilities referred to in Article 45(1) of that Directive;

(5) ‘single point of entry (SPE)’ means a resolution strategy involving the application of resolution powers by a single resolution authority at the level of a single parent undertaking or of a single institution subject to consolidated supervision;

(6) ‘multiple point of entry (MPE)’ means a resolution strategy involving the application of resolution powers by two or more resolution authorities to regional or functional subgroups or entities of a group;

(7) ‘control’ means control as defined in point (37) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council ( 1 );

(8) ‘qualifying holding’ means a qualifying holding as defined in point (36) of Article 4(1) of Regulation (EU) No 575/2013.

SECTION II

Content of recovery plans

Article 3

Information to be included in a recovery plan

A recovery plan shall include at least the following items:

(1) a summary of the key elements of the recovery plan, in accordance with Article 4;

(2) information on governance, in accordance with Article 5;

(3) a strategic analysis, in accordance with Articles 6 to 12;

(4) a communication and disclosure plan, in accordance with Article 14;

(5) an analysis of preparatory measures, in accordance with Article 15.

Article 4

Summary of the key elements of the recovery plan

1. The summary of the key elements of the recovery plan shall cover summaries of each of the following:

(a) the recovery plan's information on governance;

(b) the recovery plan's strategic analysis, including a summary of overall recovery capacity referred to in Article 12(3);

(c) any material changes to the institution, group or recovery plan since the previous version of the recovery plan submitted to the competent authority;

(d) the recovery plan's communication and disclosure plan;

(e) the preparatory measures set out in the recovery plan.

2. For the purposes of Sections II and III of Chapter I of this Regulation, material change means any change which could impact the ability of an institution or of an EU parent undertaking or one or more of its subsidiaries to implement a recovery plan or to implement one or more recovery options contained in a recovery plan.

Article 5

Governance

The information on governance shall contain at least a detailed description of the following matters:

(1) how the recovery plan was developed, including at least:

(a) the role and function of persons responsible for preparing, implementing and updating each section of the plan;

(b) the identity of the person who has overall responsibility for keeping the recovery plan up-to-date and a description of the process to be used for updating the recovery plan to respond to any material changes affecting the institution or group or their environment;

(c) a description of how the plan is integrated in the corporate governance of the institution or group and in the overall risk management framework;

(d) if the considered entity is part of a group, a description of the measures and arrangements taken within the group to ensure the coordination and consistency of recovery options at the level of the group and of individual subsidiaries;

(2) the policies and procedures governing approval of the recovery plan, including at least:

(a) a statement whether the recovery plan has been reviewed by an internal audit function, external auditor or risk committee;

(b) confirmation that the recovery plan has been assessed and approved by the management body of the institution or EU parent undertaking responsible for submitting the plan;

(3) the conditions and procedures necessary to ensure the timely implementation of recovery options, including, at least:

(a) a description of the internal escalation and decision-making process that applies when the indicators have been met, to consider and determine which recovery option may need to be applied in reaction to the situation of financial stress that has materialised, including at least:

(i) the role and function of persons involved in this process, including a description of their responsibilities, or, where a committee is involved in the process, the role...