Changes from report parliamentary committee draft to plenary report

AddedThe resolution authority, after having consulted the supervisory authority, shall assess whether those measures effectively address or remove the substantive impediment.

Added4. The group resolution authority shall communicate any measure proposed by the ultimate parent undertaking to the authorities that are members of or participate in the resolution college. The group resolution authorities and the resolution authorities of the subsidiaries, after having consulted the supervisory authorities, shall do everything within their power to reach a joint decision, as referred to in Article 17, within the resolution college regarding the identification of substantive impediments, and where necessary, regarding the assessment of the measures proposed by the ultimate parent undertaking and the measures required by the authorities in order to address or remove the impediments. When doing so, they shall take into account the potential impact of the measures in all Member States where the group operates.

AddedJoint decisions

Added1. Group supervisors, supervisory authorities, group resolution authorities and resolution authorities shall endeavour to reach the joint decisions referred to in Article 8(2), Article 11(4) and Article 16(4), as applicable, within 4 months of the date of:

Added(a) the transmission by the group supervisor of the group pre-emptive recovery plan in accordance with Article 7(4);

Added(b) the transmission by the group resolution authority of the information referred to in the Article 11(1), second subparagraph;

Added(c) the submission of any observations by the ultimate parent undertaking or at the expiry of the four-month period referred to in Article 16(3), whichever the earlier.

AddedEIOPA may, at the request of a supervisory authority or a resolution authority, assist the group supervisors, supervisory authorities, group resolution authorities and resolution authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1094/2010.

Added2. In the absence of a joint decision within the period referred to in paragraph 1 on any of the matters listed in the second subparagraph, the group supervisor or the group resolution authority, as applicable, shall make its own decision on those matters.

AddedThe matters referred to in the first subparagraph are the following:

Added(a) the review and assessment of the group pre-emptive recovery plan referred to in Article 8;

Added(b) any measures the ultimate parent undertaking is required to take in accordance with Article 6, paragraphs 3 and 4;

Added(c) the group resolution plan referred to in Article 10;

Added(d) the measures referred to in Article 16.

AddedThe decision made by the group supervisor or the group resolution authority, as applicable, shall be fully reasoned and shall take into account the views and reservations of other supervisory authorities or resolution authorities, as applicable, expressed during the four-month period. The decision shall be provided to the ultimate parent undertaking and to the other authorities concerned.

Added3. In the absence of a joint decision within the period referred to in paragraph 1 between the supervisory authorities or resolution authorities on any of the matters listed in the second subparagraph, each supervisory authority or resolution authority, as applicable, of a subsidiary shall make its own decision on those matters.

AddedThe matters referred to in the first subparagraph are the following:

Added(a) whether a recovery plan on an individual basis is to be drawn up for the insurance or reinsurance undertakings under its jurisdiction as referred to in Article 8(2);

Added(b) the application at subsidiary level of the measures referred to in Article 6, paragraphs 3 and 4;

Added(c) the identification of the material impediments, and where necessary, the assessment of the measures proposed by the ultimate parent undertaking and the measures required by the authorities in order to address or remove the impediments, as referred to in Article 16(1).

Added4. In the absence of a joint decision between the resolution authorities on the adoption of the group resolution plan, as referred to Article 11(4), within the four month period referred to in paragraph 1, each resolution authority responsible for a subsidiary shall make its own decision and shall draw up and keep updated a resolution plan for the entities under its jurisdiction. Each resolution authority shall notify its decision to the other members of the resolution college.

Added5. Each of the decisions of supervisory or resolution authorities in accordance with paragraphs 3 or 4 shall be fully reasoned and shall take into account the views and reservations of the other supervisory authorities, resolution authorities or group authorities, as applicable.

Added6. The supervisory authorities or resolution authorities that do not disagree with a decision as referred to in paragraphs 3 and 4 may reach a joint decision on a group pre-emptive recovery plan or group resolution plan covering group entities under their jurisdictions.

Added7. Where, by the end of the four-month period referred to in paragraph 1, any of the supervisory authorities or resolution authorities concerned has referred a matter to EIOPA in accordance with Article 19 of Regulation (EU) No 1094/2010, the group supervisor, the group resolution authority, the supervisory authority or the resolution authority concerned, as applicable, shall defer its decision under paragraphs 2, 3 and 4, await any decision that EIOPA may take in accordance with Article 19(3) of that Regulation, and take its decision in accordance with the decision of EIOPA. The four-month period referred to in paragraph 1 shall be deemed to be the conciliation phase as referred to in Article 19(2) of that Regulation. EIOPA shall take its decision within one month. The matter shall not be referred to EIOPA after the end of the four-month period referred to in paragraph 1 or after a joint decision has been reached. In the absence of an EIOPA decision within one month after the referral to EIOPA was made, the decision of the group supervisor, group resolution authority, supervisory authority or resolution authority for the group or the subsidiary at an individual level, as applicable, shall apply.

Added8. The joint decision referred to in Articles 8(2), Article 11(4), Article 16(4) and paragraph 6 of this Article and the decisions referred to in paragraphs 2, 3 and 4 of this Article shall be recognised as conclusive and applied by the other supervisory authorities or resolution authorities concerned in the Member States concerned.

Added9. Where joint decisions are taken pursuant to Article 11(4) and, in respect of group resolution plans, paragraph 6 of this Article and where a resolution authority assesses that the subject matter of a disagreement regarding group resolution plans impinges on the fiscal responsibilities of its Member State, the group resolution authority shall initiate a reassessment of the group resolution plan.

AddedResolution objectives

Added1. Member States shall ensure that resolution authorities, when applying the resolution tools referred to in Article 26(3) and exercising the resolution powers referred to in Articles 40 to 52, have regard to the resolution objectives listed in paragraph 2, and choose the tools and powers that best achieve the objectives that are relevant in the circumstances of the case.

Added2. The resolution objectives referred to in paragraph 1 are:

Added(a) protecting policy holders, beneficiaries and claimants of the insurance or reinsurance undertaking under resolution and other insurance and reinsurance undertakings throughout the Union;

Added(b) maintaining financial stability, in particular, by preventing contagion and by maintaining market discipline;

Added(c) ensuring the continuity of critical functions;

Added(d) protecting public funds by minimising reliance on extraordinary public financial support.

AddedMember States shall ensure that resolution authorities, when pursuing the resolution objectives, seek to minimise the cost of resolution and avoid destruction of value unless necessary to achieve those resolution objectives.

Added3. The resolution objectives referred to in paragraph 2 are of equal significance, and Member States shall ensure that resolution authorities balance them as appropriate to the nature and circumstances of each case.

AddedConditions for resolution

Added1. Member States shall ensure that resolution authorities take a resolution action in relation to an insurance or reinsurance undertaking only where all of the following conditions are met:

Added(a) the supervisory authority, after having consulted the resolution authority, or subject to the conditions laid down in paragraph 2, the resolution authority after having consulted the supervisory authority, has determined that the insurance or reinsurance undertaking is failing or likely to fail;

Added(b) there is no reasonable prospect that any alternative private sector measures or supervisory action, including preventive and corrective measures, would prevent the failure of the undertaking within a reasonable timeframe;

Added(c) resolution action is necessary in the public interest.

Added1a Where the conditions set out in paragraph 1 of this Article are met, the supervisory authority shall not apply Article 139, Article 141, Article 144(1), point (b) or (c), or Article 144(1), second subparagraph, of Directive 2009/138/EC to an undertaking under resolution, until resolution actions are taken with respect to that undertaking;

Added2. Member States shall provide that resolution authorities, after having consulted the supervisory authority, have the necessary tools for making the determination under paragraph 1, point (a) including, in particular, adequate access to any relevant information. The supervisory authority shall provide the resolution authority without delay with any relevant information that the latter requests in order to perform its assessment.

Added3. For the purposes of paragraph 1, point (a), an insurance or reinsurance undertaking shall be failing or likely to fail in any of the following circumstances:

Added(a) the insurance or reinsurance undertaking is in breach or likely to be in breach of the Minimum Capital Requirement referred to in Title I, Chapter VI, Section 5, of Directive 2009/138/EC and there is no reasonable prospect of compliance being restored;

Added(b) the insurance or reinsurance undertaking no longer fulfils the conditions for authorisation or fails seriously in its obligations under the laws and regulations to which it is subject, or there are objective elements to support that the undertaking will, in the near future, seriously fail its obligations in a way that would justify the withdrawal of the authorisation;

Added(c) the insurance or reinsurance undertaking is unable to pay its debts or other liabilities, including payments to policy holders or beneficiaries, as they fall due, or there are objective elements to support a determination that the undertaking will, in the near future, be in such a situation;

Added(d) extraordinary public financial support is required.

Added4. For the purposes of paragraph 1, point (c), a resolution action shall be in the public interest where such action is necessary for the achievement of, and is proportionate to, one or more of the resolution objectives listed in Article 18(2) and winding up the institution under normal insolvency proceedings would not meet those objectives to the same extent.

Added4a. EIOPA shall develop draft regulatory technical standards further specifying the definition of public interest referred to in paragraph 4 of this Article.

AddedEIOPA shall submit those draft regulatory technical standards to the Commission by [PO – add 12 months after entry into force].

AddedPower is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

AddedConditions for resolution with regard to parent undertakings and holding companies

Added1. Member States shall ensure that resolution authorities may take resolution action in relation to an entity referred to in Article 1(1), points (b) to (e), where that entity meets the conditions laid down in Article 19(1).

Added2. Where the subsidiary insurance or reinsurance undertakings of a mixed-activity insurance holding company are held directly or indirectly by an intermediate insurance holding company, Member States shall ensure that resolution actions for the purposes of group resolution are taken in relation to the intermediate insurance holding company, and shall not take resolution actions for the purposes of group resolution in relation to the mixed-activity insurance holding company.

Added3. Subject to paragraph 2, resolution authorities may take resolution action with regard to any of the entities referred to in Article 1(1), points (c) to (e), even where those entities do not meet the conditions laid down in paragraph 1, where all of the following conditions apply:

Added(a) one or more of the subsidiary insurance or reinsurance undertakings comply with the conditions established in Article 19(1);

Added(b) the assets and liabilities of the subsidiary insurance or reinsurance undertakings are such that their failure threatens another insurance or reinsurance undertaking of the group or the group as a whole, or the insolvency law of the Member State requires that groups be treated as a whole;

Added(c) resolution action with regard to the entities referred to in Article 1(1), points (c) to (e) is necessary for the resolution of the subsidiary insurance or reinsurance undertakings or for the resolution of the group as a whole.

AddedInsolvency proceedings in respect of undertakings that are not subject to resolution action

AddedMember States shall ensure that insurance or reinsurance undertakings that meet the conditions laid down in Article 19(1), points (a) and (b), but not the condition laid down in Article 19(1), point (c), ▐are wound up in an orderly manner in accordance with normal insolvency proceedings which ensure an orderly exit from the market.