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Application provision

3.1 The changes to this rule are effective from 23:00 on 31/12/2020.

This Chapter applies to a BRRD undertaking which is:

  1. (1) a UK parent undertaking unless the FCA is the consolidating supervisor of its group;
  2. (2) [deleted.]

3.1

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

This Chapter applies to a BRRD undertaking which is:

  1. (1) a UK parent undertaking unless the FCA is the consolidating supervisor of its group;
  2. (2) [deleted.]

3.2

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

If the consolidating supervisor is the PRA, a BRRD undertaking must draw up a group recovery plan and submit the group recovery plan to the PRA.

Additional Notes


[Note: Art. 7(1) of the BRRD]

3.3

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

The group recovery plan must consist of a recovery plan for the group headed by the UK parent undertaking as a whole.

Additional Notes


[Note: Art. 7(1) of the BRRD]

3.4

19/01/2015

A BRRD undertaking which is required by 3.2 to submit the group recovery plan to the PRA must provide its recovery plan to the PRA by online submission through:

  1. (1) email; or
  2. (2) the appropriate systems made available to BRRD undertakings

3.5

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

The group recovery plan must identify measures that may be required to be implemented at the level of the UK parent undertaking and each individual subsidiary.

Additional Notes


[Note: Art. 7(1) of the BRRD]

3.6

19/01/2015

The group recovery plan must aim to achieve the stabilisation of the group as a whole, or any institution of the group, when it is in a situation of stress so as to address or remove the causes of the distress and restore the financial position of the group or the institution in question, at the same time taking into account the financial position of other group entities.

Additional Notes


[Note: Art. 7(4) of the BRRD]

3.7

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

The group recovery plan must include arrangements to ensure the coordination and consistency of measures to be taken at the level of the UK parent undertaking, at the level of an Article 1(1)(c) entity or Article 1(1)(d) entity, as well as measures to be taken at the level of a subsidiary.

Additional Notes


[Note: Art. 7(4) of the BRRD]

3.8

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

The group recovery plan must include the elements specified in 2.62.9. The group recovery plan must include, where applicable, arrangements for intra-group financial support adopted pursuant to an agreement for intra-group financial support that has been concluded in accordance with The Bank Recovery and Resolution (No 2) Order 2014 (2014/3348) or Group Financial Support 28.

Additional Notes


[Note: Art. 7(5) of the BRRD]

3.9

19/01/2015

The group recovery plan must include a range of recovery options setting out actions to address a range of scenarios of severe macroeconomic and financial stress relevant to the group’s specific conditions including system-wide events and stress specific to individual legal persons and to groups.

Additional Notes


[Note: Art. 7(6) of the BRRD]

3.10

19/01/2015

For each scenario, the group recovery plan must identify whether there are obstacles to the implementation of recovery measures within the group, including at the level of individual entities covered by the plan, and whether there are substantial practical or legal impediments to the prompt transfer of own funds or the repayment of liabilities or assets within the group.

Additional Notes


[Note: Art. 7(6) of the BRRD]

3.11

19/01/2015

A BRRD undertaking that is a firm must demonstrate to the PRA that the group recovery plan meets the requirements set out in this Chapter and the following criteria:

  1. (1) the implementation of the arrangements proposed in the group recovery plan is reasonably likely to maintain or restore the viability and financial position of the group or of an individual subsidiary in the group, taking into account the preparatory measures that the individual subsidiary has taken or has planned to take; and
  2. (2) the group recovery plan and specific options within the group recovery plan are reasonably likely to be implemented quickly and effectively in situations of financial stress and avoiding to the maximum extent possible any significant adverse effect on the financial system, including in scenarios which would lead other institutions to implement group recovery plans within the same period.

Additional Notes


[Note: Art. 6(1) of the BRRD]

3.12

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

A BRRD undertaking that is a qualifying parent undertaking must make arrangements to ensure it is demonstrated to the consolidating supervisor that the group recovery plan meets the requirements set out in this Chapter and the following criteria:

  1. (1) the implementation of the arrangements proposed in the group recovery plan is reasonably likely to maintain or restore the viability and financial position of the group or of an individual subsidiary in the group, taking into account the preparatory measures that the individual subsidiary has taken or has planned to take; and
  2. (2) the group recovery plan and specific options within the group recovery plan are reasonably likely to be implemented quickly and effectively in situations of financial stress and avoiding to the maximum extent possible any significant adverse effect on the financial system, including in scenarios which would lead other institutions to implement group recovery plans within the same period.

Additional Notes


[Note: Art. 6(1) of the BRRD]