The Bank Recovery and Resolution (No. 2) Order 2014

Non-binding co-operation arrangements in line with EBA framework arrangements U.K.

224.—(1) Where the Bank, the PRA or the FCA concludes that—

(a) non-binding co-operation arrangements with equivalent authorities in relevant third countries would facilitate the more effective performance of relevant functions, and

(b) making the arrangements in line with EBA framework arrangements would meet that object more effectively than bilateral or multi-lateral arrangements with those authorities,

it must make non-binding co-operation arrangements in line with EBA framework arrangements with those authorities.

(2) Where the Bank, the PRA or the FCA makes any non-binding co-operation arrangements with equivalent authorities in relevant third countries (whether or not the arrangements are in line with EBA framework arrangements), it must notify EBA that it has done so.

(3) In this article—

“EBA framework arrangements” means non-binding framework co-operation arrangements concluded by EBA with authorities in relevant third countries under Article 33 of the EBA Regulation (international relations) for the purposes of Article 97 of the recovery and resolution directive (co-operation with third country authorities);

“equivalent authority”, in relation to a relevant third country—

(a)

in the case of the Bank, means the authority which, in the country concerned, exercises any function equivalent to a function of a resolution authority;

(b)

in the case of the PRA or FCA, means the authority which, in the country concerned, exercises any function equivalent to a function of a competent authority;

“relevant functions”—

(a)

in the case of the Bank, means the functions of a resolution authority under the recovery and resolution directive;

(b)

in the case of the PRA or FCA, means the functions of a competent authority under that directive; and

“relevant third country”—

(c)

where a third-country parent undertaking M1 has one or more Union subsidiaries, means the third country in which that undertaking is set up;

(d)

where a third-country institution has branches which are regarded as significant branches in at least two EEA States, means the third country in which that institution is set up;

(e)

where, in relation to a relevant group—

(i)

a group subsidiary is an institution set up in an EEA State other than the State in which the EEA parent undertaking is set up, or

(ii)

the EEA parent undertaking is an institution and has a significant branch in an EEA State other than the United Kingdom,

means any third country in which a subsidiary, which would be an institution if it were set up in an EEA State, is set up; and

(f)

where an institution has a parent undertaking, subsidiary or significant branch in at least one other EEA State and has a branch in a third country, means that third country.

Marginal Citations

M1 For the meaning of “third-country parent undertaking”, “Union subsidiary”, “third-country institution” and “significant branch” see the recovery and resolution directive, Article 2.1, points (87), (84), (86) and (34).