Changes from report parliamentary committee draft to plenary report

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 technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

AddedRequirements and procedure for group resolution plans

Added1. Member States shall ensure that ultimate parent undertakings shall submit to the group resolution authority the information that may be required by Article 12. That information shall concern the ultimate parent undertaking and to the extent required each of the group entities including the entities referred to in Article 1(1), points (b) to (e).

AddedThe group resolution authority shall, provided that the confidentiality requirements laid down in this Directive are in place, transmit the relevant information provided in accordance with this paragraph to:

Added(a) EIOPA;

Added(b) the resolution authorities which are members of the resolution college;

Added(c) the relevant supervisory authorities which are members of or participate in the supervisory college as referred to in Article 248(3) of Directive 2009/138/EC.

Added2. Member States shall ensure that in resolution colleges, group resolution authorities, acting jointly with the resolution authorities referred to in paragraph 1, second subparagraph, point (b), and after having consulted the supervisory authorities concerned which are members of or participate in the supervisory college as referred to in Article 248(3) of Directive 2009/138/EC, draw up and maintain group resolution plans. Group resolution authorities may, at their discretion, and subject to them meeting the confidentiality requirements laid down in Article 77 of this Directive, involve in the drawing up and maintenance of group resolution plans third-country resolution authorities of jurisdictions in which the group has established subsidiary insurance or reinsurance undertakings or insurance holding companies or significant branches.

Added3. Member States shall ensure that group resolution plans are regularly reviewed, and where appropriate updated, and are to be activated in case the ultimate parent undertaking or one of the material undertakings within the group risks experiencing a significant deterioration of its financial position. A review shall take place in particular after any change to the legal or organisational structure, to the business or to the financial position of the group including any group entity, that could have a material effect on or require a change to the plan.

Added4. The adoption of the group resolution plan shall take the form of a joint decision, as referred to in Article 17, of the group resolution authority and the resolution authorities of the subsidiary insurance and reinsurance undertakings and of the entities referred to in Article 1(1), points (b) to (e).

AddedInformation for the purpose of resolution plans and cooperation from the insurance or reinsurance undertaking

Added1. Member States shall ensure that resolution authorities have the power to require insurance and reinsurance undertakings or the ultimate parent undertaking, as applicable, to:

Added(a) cooperate as much as necessary in the drawing up of resolution plans or group resolution plans;

Added(b) provide them, either directly or through the supervisory authority, with all of the information necessary to draw up and implement resolution plans or group resolution plans.

Added2. Supervisory authorities in the Member States concerned shall cooperate with resolution authorities to verify whether some or all of the information referred to in paragraph 1 is already available and shall provide that information to those resolution authorities. Resolution authorities shall obtain all relevant information from supervisory authorities before requesting information from insurance and reinsurance undertakings.

Added3. EIOPA shall develop draft implementing technical standards to specify procedures and a minimum set of standard forms and templates for the provision of the information referred to in this Article, and to specify the content of such information.

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

AddedPower is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.

AddedAssessment of resolvability

Added1. Member States shall ensure that when resolution authorities, after having consulted the supervisory authority, draw up a resolution plan, they assess the extent to which insurance or reinsurance undertakings that are not part of a group are resolvable without the assumption of any extraordinary public financial support besides, where available, the use of insurance guarantee schemes or of any financing arrangements. This does not include undertakings exempted from resolution planning under Article 9.

AddedAn insurance or reinsurance undertaking shall be deemed resolvable where it is feasible and credible for that undertaking to be liquidated under normal insolvency proceedings, or for the resolution authority to resolve that undertaking by applying to it the different resolution tools referred to in Article 26(3) and resolution powers referred to in Articles 40 to 52.

Added2. Resolution authorities shall make the resolvability assessment referred to in paragraph 1 at the same time as, and for the purposes of, the drawing up and updating of the resolution plan in accordance with Article 9.

Added3. EIOPA shall develop draft regulatory technical standards to specify the matters and criteria for the assessment of the resolvability of insurance and reinsurance undertakings or groups provided for in paragraph 1 and in Article 14.

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

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

AddedAssessment of resolvability for groups

Added1. Member States shall ensure that group resolution authorities, together with the resolution authorities of subsidiaries, after having consulted the group supervisor and the supervisory authorities of such subsidiaries, assess the extent to which groups are resolvable without the assumption of any extraordinary public financial support besides, where available, the use of insurance guarantee schemes or of any financing arrangements. This does not include groups excluded from resolution planning under Article 10.

Added2. A group shall be deemed resolvable where it is feasible and credible for the resolution authorities either to wind up group entities under normal insolvency proceedings, to resolve that group by applying resolution tools to, and exercising resolution powers with respect to, group entities where they can be easily separated in a timely manner, or by any other means provided for under national law.

AddedThe resolution colleges referred to in Article 68 shall take into account the assessment of group resolvability when discharging their functions.

Added3. Group resolution authorities shall make the resolvability assessment of groups at the same time as, and for the purposes of, the drawing up and updating of the group resolution plans in accordance with Article 10. The assessment shall be made under the decision-making procedure laid down in Article 11.

AddedPower to address or remove impediments to resolvability

Added1. Member States shall ensure that where the assessment carried out in accordance with Articles 13 or 14 reveals that there are substantive impediments to the resolvability of the insurance or reinsurance undertaking concerned, the resolution authority shall notify that insurance or reinsurance undertaking and the supervisory authority concerned thereof in writing.

Added2. The requirement for resolution authorities to draw up resolution plans and for the relevant resolution authorities to reach a joint decision in accordance with Article 17 on group resolution plans referred to in Article 9(1) and Article 11(4) respectively shall be suspended following the notification referred to in paragraph 1 of this Article until the measures to remove the substantive impediments to resolvability have been accepted by the resolution authority pursuant to paragraph 3 of this Article or decided upon pursuant to paragraph 4 of this Article.

Added3. Within four months of the date of receipt of a notification referred to in paragraph 1, the insurance or reinsurance undertaking shall propose to the resolution authority possible measures to address or remove the substantive impediments identified in the notification.

AddedThe timeline for the implementation of the measures referred to in the first subparagraph prepared by the undertaking concerned shall take into account the reasons for the substantive impediment.

AddedThe resolution authority, after having consulted the supervisory authority, shall assess whether the measures referred to in the first subparagraph effectively address or remove the substantive impediment concerned.

Added4. Resolution authorities that find that the measures proposed by an insurance or reinsurance undertaking in accordance with paragraph 3, first subparagraph, do not effectively reduce or remove the impediments concerned, shall, either directly, or indirectly through the supervisory authority, require the insurance or reinsurance undertaking concerned to take any of the alternative measures referred to in paragraph 5, and notify such measures in writing to that entity, which shall propose a plan to comply with those requirements within one month after having received such notification.

AddedWhen identifying alternative measures, resolution authorities shall demonstrate how the measures proposed by the insurance or reinsurance undertaking would not be able to remove the impediments to resolvability and how the alternative measures proposed are proportionate in removing those impediments. Resolution authorities shall take into account the effect of the measures on the business of the insurance or reinsurance undertaking, its stability and its ability to contribute to the economy.

Added5. The alternative measures referred to in paragraph 4 shall be any of the following:

Added(a) require the insurance or reinsurance undertaking to revise any intra-group financing agreements or review the absence thereof, or draw up service agreements, whether intra-group or with third parties;

Added(b) require the insurance or reinsurance undertaking to limit its maximum individual and aggregate exposures;

Added(c) impose specific or regular additional information requirements relevant for resolution purposes;

Added(d) require the insurance or reinsurance undertaking to divest specific assets or to restructure liabilities;

Added(e) require the insurance or reinsurance undertaking to limit or cease specific existing or proposed activities;

Added(f) restrict or prevent the development of new or existing business lines or sale of new or existing products;

Added(g) require the insurance or reinsurance undertaking to change the reinsurance strategy;

Added(h) require changes to legal or operational structures of the insurance or reinsurance undertaking or any group entity, either directly or indirectly under its control, so as to reduce complexity to ensure that critical functions may be legally and operationally separated from other functions through the application of the resolution tools;

Added(i) require an insurance or reinsurance undertaking or a parent undertaking to set up a parent insurance holding company in a Member State or a Union parent insurance holding company;

Added(j) where an insurance or reinsurance undertaking is the subsidiary of a mixed-activity insurance holding company, require that the mixed-activity insurance holding company sets up a separate insurance holding company to control the insurance or reinsurance undertaking, where necessary to facilitate the resolution of the insurance or reinsurance undertaking and to avoid that the application of resolution tools and the exercise of resolution powers has an adverse effect on the non-financial part of the group.

Added6. Before identifying any alternative measure referred to in paragraph 5, the resolution authority, after having consulted the supervisory authority, shall duly consider the potential effect of such measure on the soundness and stability of that particular insurance or reinsurance undertaking’s ongoing business and on the internal market.

Added7. A notification or decision made pursuant to paragraph 1 or 4:

Added(a) shall contain the reasons for the assessment or determination in question;

Added(b) shall indicate how the notification or decision complies with the requirement for proportionate application laid down in paragraph 4, second subparagraph;

Added(c) shall be subject to a right of appeal.

Added8. EIOPA shall, by [PO – add 18 months after entry into force], issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further details on the measures provided for in paragraph 5 and the circumstances in which each measure may be applied.

AddedPower to address or remove impediments to resolvability: group treatment

Added1. A group resolution authority, together with the resolution authorities of subsidiaries, after having consulted the supervisory college, shall consider the assessment referred to in Article 14 within the resolution college and shall take all reasonable steps to reach a joint decision as referred to in Article 17 on the application of measures identified in accordance with Article 15(4) in relation to all relevant group entities.

Added2. The group resolution authority, in cooperation with the group supervisor and with EIOPA, in accordance with Article 25(1) of Regulation (EU) No 1094/2010, shall prepare and submit a report to the ultimate parent undertaking and to the resolution authorities of subsidiaries, which shall provide that report to the subsidiaries within their remit. The report shall be prepared after having consulted the supervisory authorities, and shall analyse the substantive impediments to the effective 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 in relation to the group. The report shall recommend any proportionate and targeted measures that, in the view of the group resolution authority, are necessary or appropriate to remove those impediments, considering the impact of those measures on the group's business model.

Added3. Within four months of the date of receipt of the report, the ultimate parent undertaking may submit observations and propose to the group resolution authority alternative measures to remedy the impediments identified in the report.