PART 6U.K.Assessment of resolvability and removal of impediments to resolvability

CHAPTER 2U.K.Assessment of resolvability of groups

Application and interpretation of Chapter 2U.K.

61.—(1) This Chapter applies where the Bank—

(a)F1... draws up a group resolution plan in accordance with Chapter 2 of Part 5 or reviews a plan drawn up in accordance with that ChapterF1...

F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In this Chapter “assessment of group resolvability” means an assessment of the extent to which it would be feasible and credible to [F3apply the resolution tools or exercise resolution powers in respect of resolution entities, or take] insolvency proceedings in respect of group entities while avoiding to the maximum extent possible any significant adverse effect on the financial system of [F4the United Kingdom] or the continuity of the critical functions of group entities.

Textual Amendments

F3Words in art. 61(2) substituted (31.12.2020) by S.I. 2018/1394, Sch. 3 para. 36(3)(a) (as substituted by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 77(2))

Assessment of group resolvability where the PRA or FCA is the consolidating supervisorU.K.

62.—(1) This article applies in relation to a relevant group in respect of which the PRA or FCA is the consolidating supervisor.

(2) For the purpose of drawing up or reviewing a group resolution plan the Bank must make an assessment of group resolvability [F5in respect of the relevant group and, where there is more than one resolution group in the relevant group, in respect of each resolution group].

(3) For the purpose of making the assessment of group resolvability the Bank must—

(a)consider all relevant matters, including the matters set out in [F6Schedule 2B and in any technical standards under paragraph (2A);]

(b)have regard to the circumstances under which [F7resolution entities] may meet the conditions for resolution, in particular—

(i)supposing that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and

(ii)supposing that there is no such a situation or occurrence;

(c)not assume that any of the group entities will be in receipt of—

(i)extraordinary public financial support;

(ii)emergency liquidity assistance; or

(iii)any other liquidity assistance provided by the Bank under non-standard collateralisation, tenor and interest rate terms; and

(d)consult—

(i)the appropriate regulator;

F8(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8(iii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9(3A) The Bank may make technical standards providing—

(a)further examples of relevant matters to be considered; and

(b)criteria to be examined,

for the purposes of making the assessment of group resolvability.]

(4) Paragraph (3) has effect subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(b)) with respect to the assessment of group resolvability.

(5) The relevant group [F10or a resolution group] is deemed to be resolvable if the Bank concludes that it would be feasible and credible to [F11apply the resolution tools or exercise resolution powers in respect of resolution entities, or take] insolvency proceedings in respect of group entities while avoiding to the maximum extent possible any significant adverse effect on the financial system of [F12the United Kingdom] or the continuity of the critical functions of group entities.

F13(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F11Words in art. 62(5) substituted (31.12.2020) by S.I. 2018/1394, Sch. 3 para. 37(4)(a) (as substituted by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 77(3))

Assessment of group resolvability where neither the PRA nor the FCA is the consolidating supervisorU.K.

F1463.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments