222. Where the resolution authority established in another EEA State transfers assets, rights or liabilities of a credit institution or an investment firm which is, in either case, an EEA firm within the meaning given by paragraph 5 of Schedule 3 to FSMA (EEA passport rights)—
(a)to a purchaser by the sale of business tool provided for under Article 38 of the recovery and resolution directive (the sale of business tool), or
(b)to a bridge institution by the bridge institution tool provided for under Article 40 of the recovery and resolution directive (bridge institution tool),
the purchaser or bridge institution is treated, in relation to the assets, rights or liabilities transferred, as the same person as the credit institution or investment firm for the purposes of paragraph 12 of Schedule 3 to FSMA.
223.—(1) The Bank, the PRA and the FCA must ensure that all persons who are responsible for performing relevant functions under authority delegated by the Bank, PRA or FCA co-operate closely with one another in the course of performing those functions.
(2) “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.
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—
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;
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”—
in the case of the Bank, means the functions of a resolution authority under the recovery and resolution directive;
in the case of the PRA or FCA, means the functions of a competent authority under that directive; and
“relevant third country”—
where a third-country parent undertaking M1 has one or more Union subsidiaries, means the third country in which that undertaking is set up;
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;
where, in relation to a relevant group—
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
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
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
M1For 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).
225.—(1) Where the PRA or FCA imposes a relevant penalty, it must inform EBA of the penalty imposed, of any appeal against the penalty and of the outcome of the appeal.
(2) “Relevant penalty” means a penalty imposed in respect of a failure by any person or undertaking to comply with a requirement to—
(a)draw up, maintain or update a recovery plan or group recovery plan;
(b)provide information required for drawing up a resolution plan or group resolution plan;
(c)give notice in accordance with Article 25.1 of the recovery and resolution directive of an intention to provide financial support under a group financial support agreement authorised pursuant to Article 20 of that directive (review of proposed agreement for provision of financial support); or
(d)give notice that the undertaking is failing or likely to fail (within the meaning given in Article 32.4 of the recovery and resolution directive).
(3) This article does not require any information to be disclosed if its disclosure would be contrary to section 348 of FSMA M2.
Marginal Citations
M2Section 348 was amended by the Financial Services Act 2010 (c. 28), section 24(1) and (2) and Schedule 2, paragraphs 1 and 26; by the Financial Services Act 2012, section 41 and Schedule 12, paragraph 18, and by the Financial Services (Banking Reform) Act 2013, section 129 and Schedule 8, paragraph 5.