Changes from report parliamentary committee draft to plenary report

AddedFor the purposes of point (h), the participation of the resolution authorities shall be limited to achieving the objectives of an efficient exchange of information.

Added3. The resolution authorities of third countries where a parent undertaking or an undertaking established in the Union has a subsidiary insurance or reinsurance undertaking or a branch that would be considered to be significant were it located in the Union may be invited to participate in the resolution college as observers, provided that those authorities are subject to confidentiality requirements that are, in the opinion of the group resolution authority, equivalent to those laid down in Article 77.

Added4. The group resolution authority shall be the chair of the resolution college. In that capacity it shall:

Added(a) establish written arrangements and procedures for the functioning of the resolution college, after having consulted the other members of the resolution college;

Added(b) coordinate all activities of the resolution college;

Added(c) convene and chair all the meetings of the resolution college and keep all members of the resolution college fully informed in advance of the organisation of meetings of the resolution college, of the main issues to be discussed and of the items to be considered;

Added(d) notify the members of the resolution college of any planned meetings so that they can request to participate;

Added(e) decide which members and observers shall be invited to attend particular meetings of the resolution college, on the basis of specific needs, taking into account the relevance of the issue to be discussed for those members and observers;

Added(f) keep all of the members of the college informed, in a timely manner, of the decisions and outcomes of those meetings.

AddedNotwithstanding point (e), resolution authorities shall be entitled to participate in resolution college meetings whenever matters subject to joint decision-making or relating to a group entity located in their Member State are on the agenda.

Added5. Group resolution authorities shall not be obliged to establish a resolution college if other groups or colleges perform the same functions and carry out the same tasks specified in paragraph 1 and comply with all the conditions and procedures, including those covering membership and participation in resolution colleges, laid down in this Article and in Article 69. In such a case, all references to resolution colleges in this Directive shall be understood as references to those other groups or colleges.

Added6. EIOPA shall develop draft regulatory standards to specify the operational functioning of the resolution colleges for the performance of the tasks referred to in paragraph 1.

AddedEIOPA shall submit those draft regulatory technical standards to the Commission by [PO – add 18 months after entry into force].

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

AddedInformation exchange

Added1. Subject to Article 64, resolution authorities and supervisory authorities shall provide one another on request with all the information relevant for the exercise of the other authorities’ tasks under this Directive.

Added2. The group resolution authority shall coordinate the flow of all relevant information between resolution authorities. In particular, the group resolution authority shall provide the resolution authorities in other Member States with all the relevant information in a timely manner to facilitate the exercise of the tasks referred to in Article 68(1), second subparagraph, points (b) to (h).

Added3. A resolution authority shall not transmit information that has been provided by a third-country supervisory or resolution authority unless that third-country supervisory or resolution authority has consented to such transmission.

AddedResolution authorities shall not be obliged to transmit such information if the third-country supervisory or resolution authority has not consented to its onward transmission.

AddedGroup resolution involving a subsidiary of the group

Added1. A resolution authority that decides that an insurance or reinsurance undertaking or any entity as referred to in Article 1(1), points (b) to (e), that is a subsidiary of a group, meets the conditions for resolution laid down in Article 19(1) or Article 20(3), shall notify the following information without delay to the group resolution authority, if different, to the group supervisor, and to the members of the resolution college for the group in question:

Added(a) the decision that the insurance or reinsurance undertaking or any entity referred to in Article 1(1), points (b) to (e), meets the conditions laid down in Article 19 or 20;

Added(b) the resolution actions or insolvency measures that the resolution authority considers to be appropriate for that insurance or reinsurance undertaking or that entity referred to in Article 1(1), points (b) to (e).

Added2. On receiving the notification referred to in paragraph 1, the group resolution authority, after having consulted the other members of the resolution college concerned, shall assess the likely impact of the resolution actions or other measures notified in accordance with paragraph 1, point (b), on the group and on group entities in other Member States, and whether the resolution actions or other measures would make it likely that the conditions for resolution referred to in Article 19(1) or Article 20(3) would be satisfied in relation to a group entity in another Member State.

Added3. Where the group resolution authority assesses that the resolution actions or other measures notified in accordance with paragraph 1, point (b), would not make it likely that the conditions laid down in Article 19(1) or Article 20(3) would be satisfied in relation to a group entity in another Member State, the resolution authority responsible for the insurance or reinsurance undertaking or the entity referred to in Article 1(1), points (b) to (e), may take the resolution actions or other measures that it notified in accordance with paragraph 1, point (b), of this Article.

Added4. Where the group resolution authority assesses that the resolution actions or other measures notified in accordance with paragraph 1, point (b), would make it likely that the conditions laid down in Article 19(1) or 20(3) would be satisfied in relation to a group entity in another Member State, the group resolution authority shall, no later than 24 hours after receiving the notification referred to in paragraph 1, propose a group resolution scheme and submit that scheme to the resolution college. That 24-hour period may be extended with the consent of the resolution authority which made the notification referred to in paragraph 1.

Added5. In the absence of an assessment by the group resolution authority within 24 hours, or a longer period that has been agreed, after having received the notification referred to in paragraph 1, the resolution authority which made the notification referred to in paragraph 1 may take the resolution actions or other measures that it notified in accordance with point (b) of that paragraph.

Added6. The group resolution scheme referred to in paragraph 4 shall:

Added(a) outline the resolution actions that the resolution authorities concerned should take in relation to the ultimate parent undertaking or particular group entities to meet the resolution objectives referred to in Article 18 and to comply with the general principles governing resolution referred to in Article 22;

Added(b) specify how the resolution actions referred to in point (a) should be coordinated;

Added(c) establish a financing plan which takes into account the group resolution plan and the principles for sharing responsibility laid down in that group resolution plan in accordance with Article 10(2), point (e).

Added7. Subject to paragraph 8, the group resolution scheme shall take the form of a joint decision of the group resolution authority and the resolution authorities responsible for the subsidiaries that are covered by the group resolution scheme.

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

Added8. A resolution authority that disagrees with the group resolution scheme proposed by the group resolution authority or that considers that, for reasons of protection of policy holders, the real economy and financial stability, it needs to take independent resolution actions or measures other than those proposed in the group resolution scheme in relation to an insurance or reinsurance undertaking or an entity referred to in of Article 1(1), points (b) to (e), shall:

Added(a) set out in detail the reasons for the disagreement or the reasons to depart from the group resolution scheme;

Added(b) notify the group resolution authority and the other resolution authorities that are covered by the group resolution scheme of the reasons referred to in point (a);

Added(c) inform the group resolution authority and the other resolution authorities that are concerned by the group resolution scheme about the resolution actions or measures it will take.

AddedWhen setting out the reasons for its disagreement, a resolution authority shall take into consideration the group resolution plans referred to in Article 11, the potential impact of the actions or measures it will take on policy holders, the real economy and financial stability in the Member States concerned, and the potential effect of these resolution actions or measures on other parts of the group.

Added9. Resolution authorities that do agree with the group resolution scheme proposed by the group resolution authority may reach a joint decision on a group resolution scheme covering group entities in their respective Member States without the participation of the disagreeing resolution authorities.

Added10. The joint decisions referred to in paragraph 7 and 9 and the resolution actions or measures taken in accordance with paragraph 8 shall be recognised as conclusive and applied by the resolution authorities in the Member States concerned.

Added11. Authorities shall take all actions and measures referred to in this Article without delay, and with due regard to the urgency of the situation.

Added12. Where a group resolution scheme is not implemented, resolution authorities shall, when taking resolution actions in relation to any group entity, cooperate closely within the resolution college to achieve a coordinated resolution strategy for all the group entities that are failing or likely to fail.

Added13. Resolution authorities that take any resolution action in relation to any group entity shall inform the members of the resolution college regularly and fully about those actions or measures and their on-going progress.

AddedGroup resolution involving an ultimate parent undertaking

Added1. A group resolution authority that decides that an ultimate parent undertaking for which it is responsible meets the conditions referred to in Article 19(1) or Article 20(3) shall notify the information referred to in Article 70(1), points (a) and (b), to the group supervisor and to the other members of the resolution college of the group in question without delay.

AddedThe resolution actions or insolvency measures referred to in Article 70(1), point (b), may include the implementation of a group resolution scheme drawn up in accordance with Article 70(6) in any of the following circumstances:

Added(a) the resolution actions or other measures at parent level notified in accordance with Article 70(1), point (b), make it likely that the conditions laid down in Article 19(1) or Article 20(3) would be fulfilled in relation to a group entity in another Member State;

Added(b) resolution actions or other measures at parent level only are not sufficient to stabilise the situation or are not likely to provide an optimum outcome;

Added(c) the resolution authorities have determined that one or more subsidiaries for which they are responsible meet the conditions referred to in Article 19(1) or Article 20(3);

Added(d) resolution actions or other measures at group level will benefit the subsidiaries of the group in a way that makes a group resolution scheme appropriate.

Added2. Where the actions or measures proposed by the group resolution authority under paragraph 1 do not contain a group resolution scheme, the group resolution authority shall take its decision after having consulted the members of the resolution college.

Added3. Where the actions or measures proposed by the group resolution authority under paragraph 1 do contain a group resolution scheme, the group resolution scheme shall take the form of a joint decision of the group resolution authority and the resolution authorities responsible for the subsidiaries that are covered by the group resolution scheme.

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

Added4. A resolution authority that disagrees with or departs from the group resolution scheme proposed by the group resolution authority or considers that, for reasons of financial stability, it needs to take independent resolution actions or measures other than those proposed in the group resolution scheme in relation to an insurance or reinsurance undertaking or entity as referred to in Article 1(1), points (b) to (e) shall:

Added(a) set out in detail the reasons for the disagreement or the reasons to depart from the group resolution scheme;

Added(b) notify the group resolution authority and the other resolution authorities that are covered by the group resolution scheme of the reasons referred to in point (a);

Added(c) inform the group resolution authority and the other resolution authorities that are covered by the group resolution scheme about the actions or measures it intends to take.

AddedWhen setting out the reasons for its disagreement, the resolution authority concerned shall give consideration to the group resolution plans referred to in Article 11, the potential impact of the actions or measures it will take on financial stability in the Member States concerned and the potential effect of the resolution actions or measures on other parts of the group.

Added4a. A resolution authority shall only take independent resolution actions or measures other than those proposed in the group resolution scheme in relation to an insurance or reinsurance undertaking or an entity referred to in Article 1(1), points (b) to (e), when such independent resolution actions or measures have no detrimental impact on other Member States as regards fiscal resources, insurance guarantee schemes or any other financing arrangements.

Added5. Resolution authorities that do agree with the group resolution scheme proposed by the group resolution authority may reach a joint decision on a group resolution scheme covering group entities in their respective Member States without the participation of the disagreeing resolution authorities.