16.—(1) This Chapter applies where, in relation to a relevant group—
(a)the PRA or FCA is the consolidating supervisor; and
(b)a group entity submits a group recovery plan to the appropriate regulator for assessment F1....
(2) In this Chapter—
“business changes” means changes to the business of a group institution which would be made with the object of addressing an impediment;
“four month period” means four months beginning with the date on which the appropriate regulator transmits a copy of the group recovery plan under article 17;
“group institution” means—
the [F2UK] parent undertaking, if it is an institution;
a group subsidiary which is an institution;
“impediment”, in relation to the group recovery plan, means any material deficiency or measure in the plan which would impede its implementation;
“relevant matters”, in relation to the assessment of the group recovery plan, means the following matters for decision—
whether the plan meets the criteria for assessment;
whether group institutions should be required to draw up and submit recovery plans on an individual basis;
whether the plan contains an impediment;
whether a group entity should be required to revise the plan;
whether an impediment has been adequately addressed in a revision of the plan;
where an impediment has not been adequately addressed in a revision of the plan, whether it can be adequately addressed by directing a group entity to make specific changes to the plan; and
where an impediment cannot be adequately addressed by specific changes to the plan or by business changes—
whether a group entity should be directed to take relevant measures; and
the terms of any direction to take relevant measures;
“relevant measures” means measures to maintain or restore the viability and financial position of a group institution, including measures to—
reduce the institution's risk profile, including its liquidity risk profile;
review its structure and strategy;
enable it to undertake timely recapitalisation;
change its funding strategy in order to improve the resilience of core business lines and critical functions; or
change its governance structure; and
F3...
Textual Amendments
F1Words in art. 16(1)(b) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(2); 2020 c. 1, Sch. 5 para. 1(1)
F2Word in art. 16(2) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(3)(a); 2020 c. 1, Sch. 5 para. 1(1)
F3Words in art. 16(2) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(3)(b); 2020 c. 1, Sch. 5 para. 1(1)