Changes from report parliamentary committee draft to plenary report

Added6. The joint decision referred to in paragraph 3 or 5 and the actions and measures referred to in paragraph 4 shall be recognised as conclusive and applied by the resolution authorities in the Member States concerned.

Added7. Authorities shall perform all actions and measures referred to in paragraphs 1 to 6 without delay, and with due regard to the urgency of the situation.

Added8. Where a group resolution scheme is not implemented, resolution authorities shall, when taking resolution action in relation to any group entity, cooperate closely within the resolution college to achieve a coordinated resolution strategy for all affected group entities.

Added9. Resolution authorities that take 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.

AddedAgreements with third countries

Added1. In accordance with Article 218 TFEU, the Commission may submit to the Council proposals for the negotiation of agreements with one or more third countries regarding the means of cooperation between the resolution authorities and the third country authorities concerned, amongst others to share information sharing in connection with recovery and resolution planning in relation to insurance and reinsurance undertakings, third country insurance and reinsurance undertakings, and groups.

Added2. The agreements referred to in paragraph 1 shall seek to ensure the establishment of processes and arrangements between resolution authorities and the third country authorities concerned for cooperation in carrying out some or all of the tasks and exercising some or all of the powers referred to in Article 76.

Added3. Member States may enter into bilateral agreements with a third country regarding the matters referred to in paragraphs 1 and 2 until the entry into force of an agreement referred to in paragraph 1 with the relevant third country to the extent that such bilateral agreements are not inconsistent with this Title.

AddedRecognition and enforcement of third-country resolution proceedings

Added1. This Article shall apply in respect of third-country resolution proceedings unless and until an international agreement as referred to in Article 72(1) enters into force with the third country concerned. It shall also apply following the entry into force of an international agreement as referred to in Article 72(1) with the third country concerned to the extent that recognition and enforcement of third-country resolution proceedings is not governed by that agreement.

Added2. The resolution authority concerned shall decide whether to recognise and enforce, except as provided for in Article 74, third-country resolution proceedings relating to a Union subsidiary or a Union branch of a third-country insurance or reinsurance undertaking or a parent undertaking.

AddedThe decision shall give due consideration to the interests of each Member State where a third-country insurance or reinsurance undertaking or parent undertaking operates, and in particular on the other parts of the group and on the policy holders, the real economy and the financial stability in those Member States.

Added3. Member States shall ensure that resolution authorities are, as a minimum, empowered to do the following:

Added(a) exercise the resolution powers in relation to the following:

Added(i) assets of a third-country insurance or reinsurance undertaking or parent undertaking that are located in their Member State or governed by the law of their Member State;

Added(ii) rights or liabilities of a third-country insurance or reinsurance undertaking that are booked by the Union branch in their Member State or governed by the law of their Member State, or where claims in relation to such rights and liabilities are enforceable in their Member State;

Added(b) perfect, including to require another person to take action to perfect, a transfer of shares or other instruments of ownership in a Union subsidiary established in that Member State;

Added(c) exercise the powers in Article 47, 48 or 49 in relation to the rights of any party to a contract with an entity referred to in paragraph 1 of this Article, where such powers are necessary in order to enforce third-country resolution proceedings; and

Added(d) render unenforceable any right to terminate, liquidate or accelerate contracts, or affect the contractual rights, of entities referred to in paragraph 1 and other group entities, where such a right arises from resolution action taken in respect of the third-country insurance or reinsurance undertaking, parent undertaking of such entities or other group entities, whether by the third-country resolution authority itself or otherwise pursuant to legal or regulatory requirements as to resolution arrangements in that country, provided that the substantive obligations under the contract, including payment and delivery obligations, and provision of collateral, continue to be performed.

Added4. Resolution authorities may take, where necessary in the public interest, resolution action with respect to a parent undertaking where the relevant third-country authority determines that an insurance or reinsurance undertaking that is a subsidiary of that parent undertaking and that is incorporated in that third country meets the conditions for resolution under the law of that third country. To that end, Member States shall ensure that resolution authorities are empowered to use any resolution power in respect of that parent undertaking, and Article 46 shall apply.

Added5. The recognition and enforcement of third-country resolution proceedings shall be without prejudice to any normal insolvency proceedings under national law applicable, where appropriate, in accordance with this Directive.

AddedRight to refuse recognition or enforcement of third-country resolution proceedings

AddedThe resolution authority may refuse to recognise or to enforce third-country resolution proceedings pursuant to Article 73 if it considers:

Added(a) that the third-country resolution proceedings would have adverse effects on financial stability in the Member State in which the resolution authority is based or that the proceedings would have adverse effects on financial stability in another Member State;

Added(b) that independent resolution action under Article 75 in relation to a Union branch is necessary to achieve one or more of the resolution objectives referred to in Article 18;

Added(c) that creditors would not receive the same treatment as third-country creditors with similar legal rights under the third-country home resolution proceedings;

Added(d) that recognition or enforcement of the third-country resolution proceedings would have material fiscal implications for the Member State; or

Added(e) that the effects of such recognition or enforcement would be contrary to the national law.

AddedResolution of Union branches

Added1. Member States shall ensure that resolution authorities have the powers necessary to act in relation to a Union branch that is not subject to any third-country resolution proceedings or that is subject to third-country proceedings and one of the circumstances referred to in Article 74 applies.

AddedMember States shall ensure that Article 46 applies to the exercise of such powers.

Added2. Member States shall ensure that the powers required in paragraph 1 may be exercised by resolution authorities where the resolution authority considers that action is necessary in the public interest and one or more of the following conditions is met:

Added(a) the Union branch no longer meets, or is likely not to meet, the conditions imposed by national law for its authorisation and operation within that Member State and there is no prospect that any private sector, supervisory or relevant third-country action would restore the branch to compliance or prevent failure in a reasonable timeframe;

Added(b) the third-country insurance or reinsurance undertaking is, in the opinion of the resolution authority, unable or unwilling, or is likely to be unable, to pay its obligations to Union creditors, or obligations that have been created or booked through the branch, such as payments to policy holders or beneficiaries, as they fall due and the resolution authority is satisfied that no third-country resolution proceedings or insolvency proceedings have been or will be initiated in relation to that third-country insurance or reinsurance undertaking in a reasonable timeframe;

Added(c) the relevant third-country authority has initiated third-country resolution proceedings in relation to the third-country insurance or reinsurance undertaking, or has notified to the resolution authority its intention to initiate such a proceeding.

Added3. Where a resolution authority takes an independent action in relation to a Union branch, it shall have regard to the resolution objectives referred to in Article 18 and take the action in accordance with the following principles and requirements, insofar as they are relevant:

Added(a) the principles set out in Article 22;

Added(b) the requirements relating to the application of the resolution tools in Title III, Chapter II.

AddedCooperation with third-country authorities

Added1. This Article shall apply in respect of cooperation with a third country unless and until an international agreement as referred to in Article 72(1) enters into force with the relevant third country. It shall also apply following the entry into force of an international agreement provided for in Article 72(1) with the relevant third country to the extent that the subject matter of this Article is not governed by that agreement.

Added2. EIOPA may conclude non-binding framework cooperation arrangements with relevant third-country authorities. The framework cooperation agreements shall establish processes and arrangements between the participating authorities for sharing information necessary for and cooperation in carrying out some or all or the following tasks and exercising some or all of the following powers in relation to insurance or reinsurance undertakings or groups:

Added(a) the development of resolution plans in accordance with Articles 9 to 12 and similar requirements under the law of the relevant third countries;

Added(b) the assessment of the resolvability of such insurance and reinsurance undertakings and groups, in accordance with Articles 13 and 14 and similar requirements under the law of the relevant third countries;

Added(c) the application of powers to address or remove impediments to resolvability pursuant to Articles 15 and 16 and any similar powers under the law of the relevant third countries;

Added(d) the application of preventive measures pursuant to Article 141 of Directive 2009/138/EC and similar powers under the law of the relevant third countries;

Added(e) the application of resolution tools as referred to in Article 26(3) and exercise of resolution powers and similar powers exercisable by the relevant third-country authorities.

Added3. Supervisory or resolution authorities, where appropriate, may conclude cooperation arrangements in line with the EIOPA framework arrangement referred to in paragraph 2 with relevant third country authorities.

Added4. Member States shall notify EIOPA of any cooperation arrangements that resolution authorities and supervisory authorities have concluded in accordance with this Article.

AddedExchange of confidential information

Added1. Member States shall ensure that resolution authorities, supervisory authorities and competent ministries exchange confidential information, including pre-emptive recovery plans drawn up and maintained in accordance with Articles 5 and 7, with relevant third-country authorities only if the following conditions are met:

Added(a) those third-country authorities are subject to requirements and standards of professional secrecy at least considered to be equivalent, in the opinion of all the authorities concerned, to those imposed by Article 64.

Added(b) the information is necessary for the performance by the relevant third-country authorities of their resolution functions under national law that are comparable to those under this Directive and, subject to point (a), is not used for any other purposes.

AddedFor the purposes of point (a), in so far as the exchange of information relates to personal data, the handling and transmission of such personal data to third-country authorities shall be governed by the applicable Union and national data protection law.

Added2. Where confidential information originates in another Member State, resolution authorities, supervisory authorities and competent ministries shall not disclose that information to relevant third-country authorities unless the following conditions are met:

Added(a) the relevant authority of the Member State where the information originated (the originating authority) agrees to that disclosure;

Added(b) the information is disclosed only for the purposes permitted by the originating authority.

AddedAdministrative penalties and other administrative measures

Added1. Without prejudice to the powers of resolution and supervisory authorities laid down in this Directive and Directive 2009/138/EC and the right of Member States to provide for and impose criminal penalties referred to in the second subparagraph, Member States shall lay down rules on administrative penalties and other administrative measures applicable where the national provisions transposing this Directive have not been complied with, and shall take all measures necessary to ensure that they are implemented.

AddedMember States that decide not to lay down rules for administrative penalties or other administrative measures for infringements which are subject to national criminal law shall communicate to the Commission the criminal law provisions concerned.

AddedThe administrative penalties and other administrative measures shall be effective, proportionate and dissuasive.