Changes from adopted text to adopted text

Removed(b) in paragraph 10, the following subparagraphs are added:

Removed‘The identification of the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities may be subject to a simplified approach by the Board, after consulting with the relevant national resolution authority, and if such approach would not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, the absence of critical functions and the group resolution strategy.

RemovedThe group resolution plan shall determine whether entities within a resolution group, other than the resolution entity, qualify as liquidation entities. Without prejudice to other factors that may be deemed relevant by the Board, entities that provide critical functions shall not qualify as liquidation entities.’;

Removed(ba) in paragraph 11, the following point is inserted:

Removed‘(-aa) contain a detailed description of the reasons for determining that a group entity is to be qualified as a liquidation entity, including an explanation of how the resolution authority came to the conclusion that the institution lacks critical functions, and how the ratio of its total risk exposure amount and operating income in the group’s total risk exposure amount and operating income, as well as the leverage ratio of the group entity in the context of the group have been taken into account;’;

Removed(c) the following paragraph is added:

Removed‘14. The Board shall not adopt resolution plans for the entities and groups referred to in paragraph 1 where Article 22(5) applies or where insolvency proceedings have been initiated with regard to the entity or group ▌in accordance with the applicable national law pursuant to Article 32b of Directive 2014/59/EU.’;

Removed(5) Article 10 is amended as follows:

Removed(a) in paragraph 4, fourth subparagraph, the words ‘first subparagraph’ are replaced by the words ‘third subparagraph’;

Removed(b) in paragraph 7, the words ‘addressed to the institution or the parent undertaking’ are replaced by the words ‘addressed to the entity or the parent undertaking’ and the words ‘impact on the institution’s business model’ are replaced by the words ‘impact on the entity’s or the group’s business model’;

Removed(c) paragraph 10 is amended as follows:

Removed(i) in the second subparagraph, the word ‘institution’ is replaced by the words ‘entity concerned’;

Removed(ii) in the third subparagraph, the word ‘institution’ is replaced by the word ‘entity’;

Removed(iii) the following subparagraph is added:

Removed‘If the measures proposed by the entity concerned effectively reduce or remove the impediments to resolvability, the Board shall take a decision, after having consulted the ECB or the relevant national competent authority and, where appropriate, the designated macro-prudential authority. That decision shall indicate that the measures proposed effectively reduce or remove the impediments to resolvability and shall instruct the national resolution authorities to require the institution, the parent undertaking, or any subsidiary of the group concerned, to implement the measures proposed.’;

Removed(d) the following paragraph is added:

Removed‘13a. The resolution authority shall publish, at the end of each resolution planning cycle, an anonymised list that presents in an aggregated form any identified substantive impediments to resolvability and relevant actions to address them. The professional secrecy provisions laid down in Article 88 shall apply. ’;

Removed(6) Article 10a is amended as follows:

Removed(a) in paragraph 1, the introductory wording is replaced by the following:

Removed‘1. Where an entity is in a situation where it meets the combined buffer requirement when considered in addition to each of the requirements referred to in Article 141a(1), points (a), (b) and (c), of Directive 2013/36/EU, but fails to meet the combined buffer requirement when considered in addition to the requirements referred to in Articles 12d and 12e of this Regulation when calculated in accordance with Article 12a(2), point (a), of this Regulation, the Board shall have the power, in accordance with paragraphs 2 and 3 of this Article, to instruct the national resolution authority to prohibit an entity from distributing more than the Maximum Distributable Amount related to the minimum requirement for own funds and eligible liabilities ("M-MDA"), calculated in accordance with paragraph 4 of this Article, through any of the following actions:’;

Removed(b) the following paragraph 7 is added:

Removed‘7. Where an entity is not subject to the combined buffer requirement on the same basis as the basis on which it is required to comply with the requirements referred to in Articles 12d and 12e, the Board shall apply paragraphs 1 to 6 of this Article on the basis of the estimation of the combined buffer requirement in accordance with Commission Delegated Regulation (EU) 2021/1118*. Article 128, fourth paragraph, of Directive 2013/36/EU shall apply.

RemovedThe Board shall include the estimated combined buffer requirement referred to in the first subparagraph in the decision determining the requirements referred to in Articles 12d and 12e of this Regulation. The entity shall make the estimated combined buffer requirement publicly available together with the information referred to in Article 45i(3) of Directive 2014/59/EU.

Removed______________________________

Removed* Commission Delegated Regulation (EU) 2021/1118 of 26 March 2021 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the methodology to be used by resolution authorities to estimate the requirement referred to in Article 104a of Directive 2013/36/EU of the European Parliament and of the Council and the combined buffer requirement for resolution entities at the resolution group consolidated level where the resolution group is not subject to those requirements under that Directive (OJ L 241, 8.7.2021, p. 1).’;

Removed(7) in Article 12, the following paragraph 8 is added:

Removed‘8. The Board shall be responsible for granting the permissions referred to in Articles 77(2) and 78a of Regulation (EU) No 575/2013 to the entities referred to in paragraph 1 of this Article. The Board shall address its decision to the entity concerned.’;

Removed(8) in Article 12a, paragraph 1 is replaced by the following:

Removed‘1. The Board and national resolution authorities shall ensure that the entities referred to in Article 12(1) and (3) meet, at all times, the requirements for own funds and eligible liabilities where required by and as determined by the Board in accordance with this Article and Articles 12b to 12i.’;

Removed(9) Article 12c is amended as follows:

Removed(a) in paragraphs 4 and 5, the word ‘G-SIIs’ is replaced by the words ‘G-SII entities’;

Removed(b) in paragraph 7, introductory wording, the words ‘paragraph 3’ are replaced by the words ‘paragraph 4’, and the word ‘G-SIIs’ is replaced by the words ‘G-SII entities’;

Removed(c) paragraph 8 is amended as follows:

Removed(i) in the first subparagraph, the word ‘G-SIIs’ is replaced by the words ‘G-SII entities’;

Removed(ii) in the second subparagraph, point (c), the word ‘G-SII’ is replaced by the words ‘G-SII entity’;

Removed(d) the following paragraph 10 is added:

Removed‘10. The Board may permit resolution entities to comply with the requirements referred to in paragraphs 4, 5 and 7 using own funds or liabilities as referred to in paragraphs 1 and 3 when all of the following conditions are met:

Removed(a) for entities that are G-SII entities or resolution entities that are subject to Article 12d(4) or (5), the Board has not reduced the requirement referred to in paragraph 4 of this Article, pursuant to the first subparagraph of that paragraph;

Removed(b) the liabilities referred to in paragraph 1 of this Article that do not meet the condition referred to in Article 72b(2), point (d), of Regulation (EU) No 575/2013 comply with the conditions set out in Article 72b(4), points (b) to (e), of that Regulation.’;

Removed(10) in Article 12d, paragraph 3, eighth subparagraph, and paragraph 6, eighth subparagraph, the words ‘critical economic functions’ are replaced by the words ‘critical functions’;

Removed(11) the following Article is inserted:

Removed‘Article 12da

RemovedDetermination of the minimum requirement for own funds and eligible liabilities for transfer strategies▌

Removed1. When applying Article 12d to a resolution entity whose preferred resolution strategy envisages, independently or in combination with other resolution tools, ▌the use of the sale of business tool or the bridge institution tool, ▌the Board shall set the recapitalisation amount provided in Article 12d(3) in a proportionate way on the basis of the following criteria, as relevant:

Removed(a) the ▌size, business model, funding model and risk profile of the resolution entity or, as relevant, the size of the part of the resolution entity that is subject to the sale of business or bridge institution tool;

Removed(b) the shares, other instruments of ownership, assets, rights or liabilities to be transferred to a recipient as identified in the resolution plan, taking into consideration:

Removed(i) the core business lines and critical functions of the resolution entity;

Removed(ii) the liabilities excluded from bail-in pursuant to Article 27(3);

Removed(iii) the safeguards referred to in Articles 73 to 80 of Directive 2014/59/EU;

Removed(iiia) the expected own funds requirements for any bridge institution that might be needed to implement the market exit of the resolution entity, to ensure compliance by the bridge institution with Regulation (EU) No 575/2013, Directive 2013/36/EU and Directive 2014/65/EU, as applicable;

Removed(iiib) the expected demand by the recipient for the transaction to be capital neutral with regard to the requirements applicable to the acquiring entity;

Removed(c) the expected value and marketability of the shares, other instruments of ownership, assets, rights or liabilities of the resolution entity referred to in point (b), taking into account:

Removed(i) any material impediments to resolvability, identified by the resolution authority, that are ▌related to the application of the sale of business tool or the bridge institution tool;

Removed(ii) the losses resulting from the assets, rights or liabilities left in the residual institution;

Removed(iia) a potentially adverse market environment at the time of resolution;

Removed(d) whether the preferred resolution strategy envisages the transfer of shares or other instruments of ownership issued by the resolution entity, or of all or part of the assets, rights and liabilities of the resolution entity;

Removed(e) whether the preferred resolution strategy envisages the application of the asset separation tool.

Removed▌

Removed3. The application of paragraph 1 shall not result in an amount that is higher than the amount resulting from the application of Article 12d(3) or in an amount that is lower than 13,5% of the total risk exposure amount, calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013, and lower than 5% of the total exposure measure of the relevant entity referred to in paragraph 1 of this Article, calculated in accordance with Articles 429 and 429a of Regulation (EU) No 575/2013.’;

Removed(12) in Article 12e(1), the words ‘G-SII or part of a G-SII’ are replaced by the words ‘G-SII entity’;