Changes from report parliamentary committee draft to plenary report

AddedTITLE I SUBJECT MATTER AND SCOPE, DEFINITIONS AND DESIGNATION OF RESOLUTION AUTHORITIES

AddedSubject matter and scope

Added1. This Directive lays down rules and procedures for the recovery and resolution of the following entities:

Added(a) insurance and reinsurance undertakings that are established in the Union and fall within the scope of Article 2 of Directive 2009/138/EC;

Added(b) parent insurance and reinsurance undertakings established in the Union;

Added(c) insurance holding companies and mixed financial holding companies that are established in the Union;

Added(d) parent insurance holding companies and parent mixed financial holding companies established in a Member State;

Added(e) Union parent insurance holding companies and Union parent mixed financial holding companies;

Added(f) branches of insurance and reinsurance undertakings that are established outside the Union and that fulfil the conditions laid down in Articles 72 to 77.

AddedResolution authorities and supervisory authorities shall, when establishing and applying the requirements laid down in this Directive and when using the different tools at their disposal in relation to an entity referred to in the first subparagraph, take account of the nature of the business of that entity, its shareholding structure, legal form, risk profile, size, legal status, interconnectedness to other institutions or to the financial system in general, and the scope and complexity of the entity’s activities.

Added2. Member States may adopt or maintain rules that are stricter or additional to those laid down in this Directive and in the delegated and implementing acts adopted on the basis of this Directive, provided that those rules are of general application and do not conflict with this Directive and with the delegated and implementing acts adopted on its basis. When Member States adopt or maintain such rules, they shall inform EIOPA thereof.

AddedDefinitions

Added1. For the purposes of this Directive, the definitions laid down in Article 212, points (a) to (d) and (f) to (h), of Directive 2009/138/EC shall apply.

Added2. For the purposes of this Directive, the following definitions shall apply:

Added(1) ‘resolution’ means the application of a resolution tool or a tool referred to in Article 26(3) to achieve one or more of the resolution objectives referred to in Article 18(2);

Added(2) ‘parent insurance holding company in a Member State’ means an insurance holding company as defined in Article 212(1), point (f), of Directive 2009/138/EC which is established in a Member State and which is not a subsidiary undertaking of an insurance or reinsurance undertaking, insurance holding company or mixed financial holding company authorised or set up in the same Member State;

Added(3) ‘Union parent insurance holding company’ means a parent insurance holding company in a Member State which is not a subsidiary undertaking of an insurance or reinsurance undertaking, another insurance holding company or mixed financial holding company authorised or set up in any Member State;

Added(4) ‘parent mixed financial holding company in a Member State’ means a mixed financial holding company as defined in Article 212(1), point (h), of Directive 2009/138/EC which is established in a Member State, which is not itself a subsidiary undertaking of an insurance or reinsurance undertaking, an insurance holding company or mixed financial holding company authorised or set up in that same Member State;

Added(5) ‘Union parent mixed financial holding company’ means a parent mixed financial holding company in a Member State that is not a subsidiary undertaking of an undertaking authorised in any Member State or of another insurance holding company or mixed financial holding company set up in any Member State;

Added(6) ‘resolution objectives’ means the resolution objectives referred to in Article 18(2);

Added(7) ‘resolution authority’ means a separate service or department within a national authority designated by a Member State in accordance with Article 3;

Added(8) ‘supervisory authority’ means a supervisory authority as defined in Article 13, point (10), of Directive 2009/138/EC;

Added(9) ‘resolution tool’ means a resolution tool referred to in Article 26(3);

Added(10) ‘resolution power’ means a power referred to in Articles 40 to 52;

Added(11) ‘competent ministries’ means finance ministries or other ministries of the Member States which are responsible for economic, financial and budgetary decisions at the national level in accordance with national competencies and which have been designated pursuant to Article 3(7);

Added(12) ‘senior management’ means those natural persons who exercise executive functions within an undertaking and who are responsible, and accountable to the administrative, management or supervisory body, for the day-to-day management of the undertaking;

Added(13) ‘cross-border group’ means a group having group entities established in more than one Member State;

Added(14) ‘extraordinary public financial support’ means State aid within the meaning of Article 107(1) TFEU, or any other public financial support at supra-national level, which, if provided for at national level, would constitute State aid that is provided to preserve or restore the viability, liquidity or solvency of an insurance or reinsurance undertaking or entity referred to in Article 1(1), points (b) to (e), or of a group of which such an undertaking or entity forms part;

Added(15) ‘group entity’ means a legal person that is part of a group;

Added(16) ‘pre-emptive recovery plan’ means a pre-emptive recovery plan drawn up and maintained by an insurance or reinsurance undertaking in accordance with Article 5;

Added(17) ‘group pre-emptive recovery plan’ means a group pre-emptive recovery plan drawn up and maintained in accordance with Article 7;

Added(18) ‘significant cross-border activities’ means significant cross-border activities as defined in Article 13, point (10aa), of Directive 2009/138/EC;

Added(19) ‘critical functions’ means activities, services or operations performed by an insurance or reinsurance undertaking for third parties that cannot be substituted within a reasonable time or at a reasonable cost, and where the inability of the insurance and reinsurance undertaking to perform the activities, services or operations would be likely to have a significant impact on the financial system or the real economy in one or more Member States, including by affecting the social welfare of a large number of policy holders, beneficiaries or injured parties or by giving rise to systemic disruption or by undermining general confidence in the provision of insurance services;

Added(20) ‘core business lines’ means business lines and associated services which represent material sources of revenue, profit or franchise value for an insurance or reinsurance undertaking or for a group of which an insurance or reinsurance undertaking forms part;

Added(21) ‘financing arrangement’ means an arrangement officially recognised by a Member State providing financing through contributions from insurance and reinsurance undertakings in the territory of that Member State to ensure the effective application by the resolution authority of the resolution tools referred to in Article 26(3) and the powers referred to in Articles 40 to 52;

Added(22) ‘own funds’ means own funds as defined in Article 87 of Directive 2009/138/EC;

Added(23) ‘resolution action’ means the decision to place an insurance or reinsurance undertaking or an entity as referred to in Article 1(1), points (b) to (e), under resolution pursuant to Article 19 or 20, the application of a resolution tool as referred to in Article 26(3), or the exercise of one or more resolution powers as referred to in Articles 40 to 52;

Added(24) ‘resolution plan’ means a resolution plan for an insurance or reinsurance undertaking drawn up in accordance with Article 9;

Added(25) ‘group resolution’ means either of the following:

Added(a) the taking of resolution action at the level of a parent undertaking or of an insurance or reinsurance undertaking subject to group supervision, or

Added(b) the coordination of the application of the resolution tools referred to in Article 26(3) and the exercise of the resolution powers referred to in Articles 40 to 52 by resolution authorities in relation to group entities that meet the conditions for resolution referred to in Article 19(1) or Article 20(3);

Added(26) ‘group resolution plan’ means a plan for group resolution drawn up in accordance with Articles 10 and 11;

Added(27) ‘group resolution authority’ means the resolution authority in the Member State in which the group supervisor is located;

Added(28) ‘group resolution scheme’ means a plan drawn up for the purposes of group resolution in accordance with Article 70;

Added(29) ‘resolution college’ means a college established in accordance with Article 68 to carry out the tasks referred to in paragraph 1 of that Article;

Added(30) ‘normal insolvency proceedings’ means collective insolvency proceedings which entail the partial or total divestment of a debtor and the appointment of a liquidator or an administrator normally applicable to insurance and reinsurance undertakings under national law and either specific to those undertakings or generally applicable to any natural or legal person;

Added(31) ‘debt instruments’ means bonds and other forms of transferrable debt, instruments creating or acknowledging a debt, and instruments giving rights to acquire debt instruments;

Added(32) ‘insurance claims’ means insurance claims as defined in Article 268(1), point (g), of Directive 2009/138/EC;

Added(33) ‘parent undertaking in a Member State’ means a parent undertaking as defined in Article 13, point (15), of Directive 2009/138/EC established in a Member State;

Added(34) ‘college of supervisors’ means a college of supervisors as defined in Article 212(1) point (e), of Directive 2009/138/EC and established in accordance with Article 248 of Directive 2009/138/EC;

Added(35) ‘Union State aid framework’ means the framework established by Articles 107, 108 and 109 TFEU and regulations and all Union acts, including guidelines, communications and notices, made or adopted pursuant to Article 108(4) or Article 109 TFEU;

Added(36) ‘winding-up’ means the realisation of assets of an insurance or reinsurance undertaking or entity referred to in Article 1(1), points (b) to (e);

Added(37) ‘asset and liability separation tool’ means the mechanism for effecting a transfer by a resolution authority of assets, rights or liabilities of an undertaking under resolution to an asset and liability management vehicle in accordance with Article 30;

Added(38) ‘asset and liability management vehicle’ means a legal person that meets the requirements laid down in Article 30(2);

Added(39) ‘write-down or conversion tool’ means the mechanism for effecting the exercise by a resolution authority of the write-down or conversion powers in relation to liabilities of an undertaking under resolution in accordance with Article 34;

Added(40) ‘sale of business tool’ means the mechanism for effecting a transfer by a resolution authority of shares or other instruments of ownership issued by an undertaking under resolution, or assets, rights or liabilities, of an undertaking under resolution to a purchaser that is not a bridge undertaking, in accordance with Article 31;

Added(41) ‘bridge undertaking’ means a legal person that meets the requirements laid down in Article 32(2);

Added(42) ‘bridge undertaking tool’ means the mechanism for transferring shares or other instruments of ownership issued by an undertaking under resolution or assets, rights or liabilities of an undertaking under resolution to a bridge undertaking, in accordance with Article 32;

Added(43) ‘solvent run-off tool’ means the mechanism for withdrawing the authorisation of an undertaking under resolution to conclude new insurance or reinsurance contracts and for limiting its activity to the exclusive administration of its existing portfolio until its termination and liquidation under normal insolvency proceedings in accordance with Article 27;

Added(44) ‘instruments of ownership’ means shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments of ownership, and instruments representing interests in shares or other instruments of ownership;