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

Application and interpretation of Chapter 1

83.—(1) This Chapter applies where, in relation to a relevant group—

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

(b) the PRA or FCA (or each of them) receives from the EEA parent undertaking an application for authorisation of a group financial support agreement (“the application”).

(2) In this Chapter—

“conditions for early intervention” means the conditions referred to in Article 27.1 of the recovery and resolution directive (early intervention measures) for which a competent authority is to have at its disposal the measures specified in sub-paragraphs (a) to (h) of that Article;

“conditions for financial support” means the conditions laid down in Chapter 3 of Title 2 of the recovery and resolution directive (intra-group financial support);

“financial support” includes—

(a)

a loan, a guarantee, the provision of assets for use as collateral or any combination of these forms of support; and

(b)

provision for support (in any form) in one or more transactions or in a transaction entered into by the group institution which is the intended recipient of the support and any other person;

“group entity” means a relevant parent undertaking or group subsidiary which proposes to enter into the group financial support agreement;

“group financial support agreement” means an agreement—

(a)

which is proposed for the provision of financial support to a group institution which, at any time after the agreement has been concluded, meets the conditions for early intervention; and

(b)

the parties to which include a relevant parent undertaking and one or more group subsidiaries set up in any country other than the EEA State in which the relevant parent undertaking is set up;

“group institution” means a group entity which is an institution;

“group subsidiary” means an undertaking which is—

(a)

a subsidiary of a relevant parent undertaking; and

(b)

an institution or financial institution;

“relevant competent authority” means a competent authority, other than the consolidating supervisor, which has authorised a group entity; and

“relevant parent undertaking” means a parent institution in an EEA State, an EEA parent institution, a financial holding company, a mixed financial holding company or a mixed activity holding company.