Changes from adopted text to adopted text

Removed3. The ECB shall specify the role and functions of the temporary administrator at the time of appointment. Such role and functions may include all of the following:

Removed(a) ascertaining the financial position of the entity;

Removed(b) managing the business or part of the business of the entity to preserve or restore its financial position;

Removed(c) taking measures to restore the sound and prudent management of the business of the entity.

RemovedThe ECB shall specify any limits on the role and functions of the temporary administrator at the time of his or her appointment.

Removed4. The ECB shall have the exclusive power to appoint and remove any temporary administrator. The ECB may remove a temporary administrator at any time and for any reason. The ECB may vary the terms of appointment of a temporary administrator at any time subject to this Article.

Removed5. The ECB may require that certain acts of a temporary administrator be subject to the prior consent of the ECB. The ECB shall specify any such requirements at the time of appointment of the temporary administrator or at the time of any variation of the terms of appointment of the temporary administrator.

RemovedIn any case, the temporary administrator may exercise the power to convene a general meeting of the shareholders of the entity and to set the agenda of such a meeting only with the prior consent of the ECB.

Removed6. At the request of the ECB, the temporary administrator shall draw up reports on the financial position of the entity and on the acts performed in the course of his or her appointment, at intervals set by the ECB, at least once, after the first six months have elapsed, and in any case at the end of his or her mandate.

Removed7. The temporary administrator shall be appointed for a maximum of 1 year. That period may be exceptionally renewed once if the conditions for appointing the temporary administrator continue to be met. The ECB shall determine those conditions and shall justify any renewal of the appointment of the temporary administrator to the shareholders.

Removed8. Subject to this Article, the appointment of a temporary administrator shall not prejudice the rights of the shareholders laid down in Union or national company law.

Removed9. A temporary administrator appointed pursuant to paragraphs 1 to 8 of this Article shall not be deemed to be a shadow director or a de facto director under national law.

RemovedArticle 13c

RemovedPreparation for resolution

Removed1. For the entities and groups referred to in Article 7(2), and the entities and groups referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met, the ECB or national competent authorities shall notify the Board without delay of any of the following:

Removed(a) any of the measures referred to in Article 16(2) of Regulation (EU) No 1024/2013 or Article 104(1) of Directive 2013/36/EU they require an entity or group to take that aim to address a deterioration in the situation of that entity or group;

Removed(b) where supervisory activity shows that the conditions laid down in Article 13(1) of this Regulation or Article 27(1) of Directive 2014/59/EU are met in relation to an entity or group, the assessment that those conditions are met, irrespective of any early intervention measure;

Removed(c) the application of any of the early intervention measures referred to in Article 13 of this Regulation or Article 27 of Directive 2014/59/EU.

RemovedThe Board shall notify the Commission of notification it has received pursuant to the first subparagraph.

RemovedThe ECB or the relevant national competent authority shall closely monitor, in close cooperation with the Board, the situation of the entities and groups referred to in the first subparagraph and their compliance with the measures referred to in the first subparagraph, point (a), that aim to address a deterioration in the situation of those entities and groups and with the early intervention measures referred to in the first subparagraph, point (c).

Removed2. The ECB or the relevant national competent authority shall notify the Board as early as possible where they consider that there is a material risk that one or more of the circumstances referred to in Article 18(4) would apply in relation to an entity as referred to in Article 7(2), or an entity as referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met. That notification shall contain:

Removed(a) the reasons for the notification;

Removed(b) an overview of the measures which would prevent the failure of the entity within a reasonable timeframe, their expected impact on the entity as regards the circumstances referred to in Article 18(4) and the expected timeframe for the implementation of those measures.

RemovedAfter having received the notification referred to in the first subparagraph, the Board shall assess, in close cooperation with the ECB or the relevant national competent authority, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 18(1), point (b), taking into account the speed of the deterioration of the conditions of the entity, the potential impact on the financial system, on the protection of depositors and on the preservation of client funds, the risk that a prolonged process increases the overall costs for customers and the economy, the need to implement effectively the resolution strategy and any other relevant considerations. The Board shall communicate that assessment to the ECB or to the relevant national competent authority as early as possible.

RemovedFollowing the notification referred to in the first subparagraph, the ECB or the relevant national competent authority ▌shall, in close cooperation with the Board, monitor the situation of the entity, the implementation of the any relevant measures within their expected timeframe and any other relevant developments. For that purpose, the Board and the ECB or the relevant national competent authority shall meet regularly, with a frequency set by the Board considering the circumstances of the case. The ECB or the relevant national competent authority and the Board shall provide each other with any relevant information without delay.

RemovedThe Board shall notify the Commission of any information it has received pursuant to the first subparagraph.

Removed3. The ECB or the relevant national competent authority shall provide the Board with all the information requested by the Board that is necessary for all of the following:

Removed(a) updating the resolution plan and preparing for the possible resolution of an entity as referred to in Article 7(2), or an entity as referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met;

Removed(b) carrying out the valuation referred to in Article 20(1) to (15).

RemovedWhere such information is not already available to the ECB or the national competent authorities, the Board and the ECB and such national competent authorities shall cooperate and coordinate to obtain that information. For that purpose, the ECB and the national competent authorities shall have the power to require the entity to provide such information, including through on-site inspections, and to provide that information to the Board.

Removed4. The Board shall have the power to market to potential purchasers, or make arrangements for such marketing, the entity referred to in Article 7(2), or the entity referred to in Article 7(4), point (b), and Article 7(5) where the conditions for the application of those provisions are met or require the entity to do so, for the following purposes:

Removed(a) to prepare for the resolution of that entity, subject to the conditions specified in Article 39(2) of Directive 2014/59/EU and the requirements of professional secrecy laid down in Article 88 of this Regulation;

Removed(b) to inform the assessment by the Board of the condition referred to in Article 18(1), point (b), of this Regulation.

Removed4a. Where, in the exercise of the power referred to in paragraph 4, the Board decides to directly market the entity concerned to potential purchasers, it shall have due regard to the circumstances of the case and the potential impact that the exercise of that power might have on the entity’s overall position.

Removed5. For the purposes of paragraph 4, the Board shall have the power to:

Removed(a) request the entity concerned to put in place a digital platform for sharing the information that is necessary for the marketing of that entity with potential purchasers or with advisors and valuers engaged by the Board;

Removed(b) require the relevant national resolution authority to draft a preliminary resolution scheme for the entity concerned.

RemovedWhere the Board exercises its power under the first subparagraph, point (b), of this paragraph, Article 88 shall apply.

Removed6. The determination that the conditions laid down in Article 13(1) of this Regulation or Article 27(1) of Directive 2014/59/EU are met and the prior adoption of early intervention measures are not necessary conditions for the Board to prepare for the resolution of the entity or to exercise the powers referred to in the paragraphs 4 and 5 of this Article.

Removed7. The Board shall inform the Commission, the ECB, the relevant national competent authorities and the relevant national resolution authorities of any action taken pursuant to paragraphs 4 and 5 without delay.

Removed8. The ECB, the national competent authorities, the Board and the relevant national resolution authorities shall closely cooperate:

Removed(a) when considering taking the measures referred to in paragraph 1, first subparagraph, point (a) that aim to address a deterioration in the situation of an entity and group, and the measures referred to in paragraph 1, first subparagraph, point (c);

Removed(b) when considering taking any of the actions referred to in paragraphs 4 and 5;

Removed(c) during the implementation of the actions referred to in points (a) and (b) of this subparagraph.

RemovedThe ECB, the national competent authorities, the Board and the relevant national resolution authorities shall ensure that those measures and actions are consistent, coordinated and effective.’;

Removed(17) in Article 14(2), points (c) and (d) are replaced by the following:

Removed‘(c) to protect public funds by minimising reliance on extraordinary public financial support, in particular when provided from the budget of a Member State;

Removed(d) to protect covered deposits and, to the extent possible, also the uncovered part of eligible deposits of natural persons and micro, small and medium-sized enterprises, and to protect investors covered by Directive 97/9/EC;’;

Removed(18) in Article 16, paragraph 2 is replaced by the following:

Removed‘2. The Board shall take a resolution action in relation to a parent undertaking as referred to in Article 2, point (b), where the conditions laid down in Article 18(1) are met.

RemovedFor those purposes, a parent undertaking as referred to Article 2, point (b), shall be deemed to be failing or likely to fail in any of the following circumstances:

Removed(a) the parent undertaking meets one or more of the conditions laid down in Article 18(4), points (b), (c) or (d);

Removed(b) the parent undertaking infringes materially, or there are objective elements that show that the parent undertaking will, in the near future, infringe materially, the applicable requirements laid down in Regulation (EU) No 575/2013 or in the national provisions that transpose Directive 2013/36/EU.’;

Removed(19) Article 18 is amended as follows:

Removed(a) paragraphs 1, 1a, 2 and 3 are replaced by the following:

Removed‘1. The Board shall adopt a resolution scheme pursuant to paragraph 6 in relation to the entities referred to in Article 7(2), and to the entities referred to in Article 7(4), point (b) and Article 7(5) where the conditions for the application of those provisions are met, only when it has determined, in its executive session, upon receiving a communication pursuant to the second subparagraph or on its own initiative, that all of the following conditions are met:

Removed(a) the entity is failing or is likely to fail;

Removed(b) ▌there is no reasonable prospect that any alternative private sector measure, including measures by an IPS, supervisory action, early intervention measures, or the write down or conversion of relevant capital instruments and eligible liabilities as referred to in Article 21(1), taken in respect of the entity would prevent the ▌ entity from failing or being likely to fail within a reasonable timeframe;

Removed(c) a resolution action is necessary in the public interest pursuant to paragraph 5.

RemovedThe assessment of the condition referred to in the first subparagraph, point (a), shall be made by the ECB for the entities referred to in Article 7(2), point (a), or by the relevant national competent authority for the entities referred to in Article 7(2), point (b), Article 7(3), second subparagraph, Article 7(4), point (b) and Article 7(5), after having consulted the Board. The Board, in its executive session, may make such an assessment only after having informed the ECB or the relevant national competent authority of its intention to make such an assessment and only if the ECB or the relevant national competent authority, within three calendar days of receipt of that information, do not make such an assessment themselves. The ECB or the relevant national competent authority shall, without delay, provide the Board with any relevant information that the Board requests to inform its assessment, before or after being informed by the Board of its intention to make the assessment of the condition referred to in the first subparagraph, point (a).