Changes from adopted text to adopted text

Removed(3) in Article 6, paragraph 5 is replaced by the following:

Removed‘5. Where the competent authority assesses that there are material deficiencies in the recovery plan, or material impediments to its implementation, it shall notify the institution or the parent undertaking of the group of its assessment and shall require the institution to submit, within 3 months, extendable with the authorities’ approval by 1 month, a revised plan demonstrating how those deficiencies or impediments are addressed.’;

Removed(4) in Article 8(2), the third subparagraph is replaced by the following:

Removed‘EBA may, at the request of a competent authority, assist the competent authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1093/2010.’;

Removed(5) ▌Article 10 is amended as follows:

Removed(a) paragraph 7 is amended as follows:

Removed(i) the following point is inserted:

Removed‘(aa) where applicable, a detailed description of the reasons for determining that an institution 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;’;

Removed(ii) the following point is inserted:

Removed‘(ja) a description of how the different resolution strategies would best achieve the resolution objectives set out in Article 31;’;

Removed(iii) the following point is inserted:

Removed‘(pa) a detailed and quantified list of covered deposits and eligible deposits from natural persons and micro, small and medium-sized enterprises;’;

Removed(b) the following paragraph 8a is inserted:

Removed‘8a. Resolution authorities shall not adopt resolution plans where insolvency proceedings have been initiated with regard to an entity in accordance with the applicable national law pursuant to Article 32b or where Article 37(6) applies.’;

Removed(c) in paragraph 9, the second subparagraph is replaced by the following:

Removed‘EBA shall submit revised draft regulatory technical standards to the Commission by ... [12 months from the date of entry into force of this amending Directive].’;

Removed(6) Article 12 is amended as follows:

Removed(a) in paragraph 1, the following third and fourth 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 resolution authorities if such approach does 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 resolution authorities, entities that provide critical functions shall not qualify as liquidation entities.’;

Removed(aa) paragraph 2 is replaced by the following:

Removed‘2. The group resolution plan shall be drawn up on the basis of the requirements laid down in Article 10 and the information provided pursuant to Article 11.’

Removed(ab) in paragraph 3, the following point is inserted:

Removed‘(-aa) contain a detailed description of the reasons for determining that a group entity referred to in paragraph 1, points (a) to (d), 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(b) the following paragraph 5a is inserted:

Removed‘5a. Resolution authorities shall not adopt resolution plans where insolvency proceedings have been initiated with regard to an entity ▌in accordance with the applicable national law pursuant to Article 32b or where Article 37(6) applies.’;

Removed(7) in Article 13(4), the fourth subparagraph is replaced by the following:

Removed‘EBA may, at the request of a resolution authority, assist the resolution authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1093/2010.’;

Removed(8) in Article 15, the following paragraph 5 is added:

Removed‘5. EBA shall monitor the drawing up of internal policies for and implementation of the resolvability assessments of institutions or groups provided for in this Article and in Article 16 by resolution authorities. EBA shall report to the Commission on the existing practices on resolvability assessments and possible divergences across Member States by … [PO please insert the date = 2 years after the date of entry into force of this Directive] and monitor the implementation of any recommendation set out in that report, where appropriate.

RemovedThe report referred to in the first subparagraph shall cover at least the following:

Removed(a) an assessment of the methodologies developed by resolution authorities to carry out resolvability assessments, including the identification of areas of possible divergence across Member States;

Removed(b) an assessment of the testing capabilities required by resolution authorities to ensure an effective implementation of the resolution strategy;

Removed(c) the level of transparency towards relevant stakeholders of the methodologies developed by resolution authorities to perform resolvability assessments and their outcome.’;

Removed(9) in Article 16a, 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 45c and 45d, resolution authorities shall apply paragraphs 1 to 6 of this Article on the basis of the estimation of the combined buffer requirement calculated in accordance with Commission Delegated Regulation (EU) 2021/1118*. Article 128, fourth paragraph, of Directive 2013/36/EU shall apply.

RemovedThe resolution authority shall include the estimated combined buffer requirement referred to in the first subparagraph in the decision determining the requirements referred to in Articles 45c and 45d of this Directive. The entity shall make the estimated combined buffer requirement publicly available together with the information referred to in Article 45i(3).

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(10) ▌Article 17 is amended as follows:

Removed(a) in paragraph 4, the following third subparagraph is added:

Removed‘If the measures proposed by the entity concerned effectively reduce or remove the impediments to resolvability, the resolution authority shall take a decision, after consulting the competent authority. That decision shall indicate that the measures proposed effectively reduce or remove the impediments to resolvability and require the entity to implement the measures proposed.’;

Removed(b) the following paragraph is added:

Removed‘8a. 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 confidentiality provisions laid down in Article 84 of this Directive shall apply. ’;

Removed(11) Article 18 is amended as follows:

Removed(a) paragraph 4 is replaced by the following:

Removed‘4. The group-level resolution authority shall communicate any measure proposed by the Union parent undertaking to the consolidating supervisor, EBA, the resolution authorities of the subsidiaries and the resolution authorities of the jurisdictions in which significant branches are located insofar as is relevant to the significant branch. The group-level resolution authority and the resolution authorities of the subsidiaries, after consulting the competent authorities and the resolution authorities of jurisdictions in which significant branches are located, shall do everything within their power to reach a joint decision within the resolution college regarding the identification of substantive impediments, and if necessary, the assessment of the measures proposed by the Union parent undertaking and the measures required by the authorities in order to address or remove the impediments, which shall take into account the potential impact of the measures in all Member States where the group operates.’;

Removed(b) paragraph 9 is replaced by the following:

Removed‘9. In the absence of a joint decision on the taking of any measures referred to in Article 17(5), point (g), (h) or (k), EBA may, upon the request of a resolution authority in accordance with paragraphs 6, 6a or 7 of this Article, assist the resolution authorities in reaching an agreement in accordance with Article 19(3) of Regulation (EU) No 1093/2010.’;

Removed(12) Articles 27 and 28 are replaced by the following:

Removed‘Article 27

RemovedEarly intervention measures

Removed1. Member States shall ensure that competent authorities consider without undue delay and, if appropriate, apply early intervention measures where an institution or entity referred to in Article 1(1), points (b), (c) or (d) meets any of the following conditions:

Removed(a) the institution or entity meets the conditions referred to in Article 102 of Directive 2013/36/EU or in Article 38 of Directive (EU) 2019/2034, or the competent authority has determined that the arrangements, strategies, processes and mechanisms implemented by the institution or entity and the own funds and liquidity held by that institution or entity do not ensure a sound management and coverage of its risks, and either of the following applies:

Removed(i) the institution or entity has not taken the remedial actions required by the competent authority, including the measures referred to in Article 104 of Directive 2013/36/EU or in Article 49 of Directive (EU) 2019/2034;

Removed(ii) the competent authority deems that remedial actions other than early intervention measures are insufficient to address the problems▌;

Removed(b) the institution or entity infringes or is likely to infringe in the 12 months following the assessment of the competent authority the requirements laid down in Title II of Directive 2014/65/EU, in Articles 3 to 7, Articles 14 to 17, or Articles 24, 25 and 26 of Regulation (EU) No 600/2014, or in Articles 45e or 45f of this Directive.

RemovedWhere there is a significant deterioration of conditions, or adverse circumstances arise or new information is obtained about an entity, the competent authority may determine that the condition referred to in the first subparagraph, point (a)(ii), is met without having previously taken other remedial actions, including the exercise of the powers referred to in Article 104 of Directive 2013/36/EU or in Article 39 of Directive (EU) 2019/2034.

RemovedFor the purposes of the first subparagraph, point (b), of this paragraph, Member States shall ensure that the competent authorities under Directive 2014/65/EU or under Regulation (EU) No 600/2014, or, as appropriate, the resolution authority informs the competent authority without delay of the infringement or likely infringement.

Removed1a. For the purposes of paragraph 1, early intervention measures shall include the following: