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

Joint determination under Article 59(3)(c) of the recovery and resolution directive in relation to a non-UK group entity U.K.

153.—(1) This article applies where—

(a) the PRA or FCA is the consolidating supervisor; and

(b) the Bank receives a relevant notice from the appropriate authority in another EEA State.

(2) “Relevant notice” is a notice stating—

(a) that the appropriate authority is considering whether to make a determination in relation to a non-UK group entity that—

(i) the entity is viable; and

(ii) the relevant group will not be viable unless the authority exercises power pursuant to Article 59 of the recovery and resolution directive to write down or convert the recognised capital instruments issued by the entity; and

(b) that in the authority's assessment, there is no reasonable prospect that any alternative measure which is available and could feasibly be taken would, within a reasonable time, avoid the need for that determination.

(3) The Bank must endeavour to reach a decision jointly with the authority from which it has received the relevant notice whether that authority may make the determination referred to in the notice.