PART 4Recovery plans
CHAPTER 2Assessment of group recovery plan where the PRA or FCA is the consolidating supervisor
Purpose of assessment19.
(1)
The purpose of the assessment of the group recovery plan is to determine whether the plan meets the criteria for assessment and decide other relevant matters.
(2)
The criteria for assessment are that the plan must satisfy the requirements of F1Schedule A1 and that the arrangements proposed in the plan—
(a)
would, if implemented, be reasonably likely to maintain or restore the viability and financial position of group institutions; and
(b)
would be reasonably likely to be implemented quickly and effectively in situations of financial stress and, as far as possible, without any material adverse impact on the financial system of F2the United Kingdom.
F3(2A)
The PRA and the FCA may each make technical standards relating to the criteria referred to in paragraph (1) for a group recovery plan submitted by a group entity that it has authorised.
(3)
The appropriate regulator must ensure that the group recovery plan is not assessed without consideration of—
(a)
any preparatory measures taken or planned to be taken by any group entity;
(b)
the possibility that the plan may have to be implemented at the same time as other group recovery plans and recovery plans drawn up by institutions; and
(c)
whether the capital and funding structure of the group institutions is appropriate having regard to the level of complexity of their organisational structure and risk profile.
(4)
This article has effect subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(a)) with respect to the group recovery plan.