Changes from adopted text to adopted text

Removed(a) the requirement for the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d), to do either of the following:

Removed(i) to implement one or more of the arrangements or measures set out in the recovery plan;

Removed(ii) to update the recovery plan in accordance with Article 5(2) where the circumstances that led to the early intervention are different from the assumptions set out in the initial recovery plan and implement one or more of the arrangements or measures set out in the updated recovery plan within a specific timeframe;

Removed(b) the requirement for the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d) to convene or, if the management body fails to comply with that requirement, convene directly, a meeting of shareholders of the institution or entity, and in both cases set the agenda and require certain decisions to be considered for adoption by the shareholders;

Removed(c) the requirement for the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d), to draw up an action plan, in accordance with the recovery plan where applicable, for negotiation on restructuring of debt with some or all of its creditors;

Removed(d) the requirement to change the legal structure of the institution;

Removed(e) the requirement to remove or replace the senior management or management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d), in its entirety or with regard to individuals, in accordance with Article 28;

Removed(f) appointment of one or more temporary administrators to the institution or entity referred to in Article 1(1), points (b), (c) or (d), in accordance with Article 29.

Removed(fa) the requirement for the management body of the entity to draw up a plan that the entity can implement where the relevant corporate body of the entity decides to initiate the voluntary winding down of the entity.

Removed2. Competent authorities shall choose the appropriate and timely early intervention measures based on what is proportionate to the objectives pursued, having regard to the seriousness of the infringement or likely infringement and the speed of the deterioration in the financial situation of the institution or entity referred to in Article 1(1), points (b), (c) or (d), among other relevant information.

Removed3. For each of the measures referred to in paragraph 1a, competent authorities shall set a deadline that is appropriate for completion of that measure and that enables the competent authority to evaluate its effectiveness.

RemovedThe evaluation of the measure shall be carried out immediately after the deadline is reached and shared with the resolution authority. Where the evaluation concludes that the measures have not been fully implemented or are not effective, the competent authority shall make an assessment of the condition referred to in Article 32(1), point (a), after having consulted the resolution authority.

Removed4. EBA shall, by … [PO please insert the date = 12 months from the date of entry into force of this amending Directive], issue draft regulatory technical standards to promote the consistent application of the triggers for the use of the measures referred to in paragraph 1 of this Article.

RemovedPower 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 1093/2010.

RemovedArticle 28

RemovedReplacement of the senior management or management body

RemovedFor the purposes of Article 27(1a), point (e), Member States shall ensure that the new senior management or management body, or individual members of those bodies, is appointed in accordance with Union and national law and is subject to the approval or consent of the competent authority.’;

Removed(13) Article 29 is amended as follows:

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

Removed‘1. For the purposes of Article 27(1a), point (f), Member States shall ensure that competent authorities may, based on what is proportionate in the circumstances, appoint any temporary administrator to do either of the following:

Removed(a) temporarily replace the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d);

Removed(b) work temporarily with the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d).

RemovedThe competent authority shall specify its choice under points (a) or (b) at the time of appointment of the temporary administrator.

RemovedFor the purposes of the first subparagraph, point (b), the competent authority shall further specify at the time of the appointment of the temporary administrator the role, duties and powers of that temporary administrator and any requirements for the management body of the institution or entity to consult or to obtain the consent of the temporary administrator prior to taking specific decisions or actions.

RemovedMember States shall require the competent authority to make public the appointment of any temporary administrator, except where the temporary administrator does not have the power to represent or make decisions on behalf of the institution or entity referred to in Article 1(1), points (b), (c) or (d).

RemovedMember States shall further ensure that any temporary administrator fulfils the requirements set out in Article 91(1), (2) and (8) of Directive 2013/36/EU. The assessment by competent authorities of whether the temporary administrator complies with those requirements shall be an integral part of the decision to appoint that temporary administrator.

Removed2. The competent authority shall specify the powers of the temporary administrator at the time of his or her appointment, based on what is proportionate in the circumstances. Such powers may include some or all of the powers of the management body of the institution or entity referred to in Article 1(1), points (b), (c) or (d), under the statutes of the institution or entity and under national law, including the power to exercise some or all of the administrative functions of the management body of the institution or entity. The powers of the temporary administrator in relation to the institution or entity shall comply with the applicable company law. Such powers may be adjusted in the event of a change in circumstances by the competent authority.

Removed3. The competent authority shall specify the role and functions of the temporary administrator at the time of appointment. Such roles and functions may include:

Removed(a) ascertaining the financial position of the institution or entity referred to in Article 1(1), points (b), (c) or (d);

Removed(b) managing the business or part of the business of the institution or entity referred to in Article 1(1), points (b), (c) or (d) to preserve or restore its financial position;

Removed(c) taking measures to restore the sound and prudent management of the business of the institution or entity referred to in Article 1(1), points (b), (c) or (d).

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

Removed(b) in paragraph 5, the second subparagraph is replaced by the following:

Removed‘In any case, the temporary administrator may exercise the power to convene a general meeting of the shareholders of the institution or entity referred to in Article 1(1), points (b), (c) or (d) and to set the agenda of such a meeting only with the prior consent of the competent authority.’;

Removed(c) paragraph 6 is replaced by the following:

Removed‘6. At the request of the competent authority, the temporary administrator shall draw up reports on the financial position of the institution or entity referred to in Article 1(1), points (b), (c) or (d) and on the acts performed in the course of his or her appointment, at intervals set by the competent authority, at least once, after the first six months have elapsed, and in any case at the end of his or her mandate.’;

Removed(ca) paragraph 7 is replaced by the following:

Removed‘7. The temporary administrator shall be appointed for a maximum of one year. That period may be exceptionally renewed once if the conditions for appointing the temporary administrator continue to be met. The competent authority shall be responsible for determining whether those conditions are met and justifying any such decision to the shareholders.’;

Removed(14) Article 30 is amended as follows:

Removed(a) the title is replaced by the following:

Removed‘Coordination of early intervention measures in relation to groups’;

Removed(b) paragraphs 1 to 4 are replaced by the following:

Removed‘1. Where the conditions for the imposition of early intervention measures under Article 27 are met in relation to a Union parent undertaking, the consolidating supervisor shall notify EBA and consult the other competent authorities within the supervisory college before deciding to apply an early intervention measure.

Removed2. Following the notification and consultation referred to in paragraph 1 the consolidating supervisor shall decide whether to apply early intervention measures under Article 27 in respect of the relevant Union parent undertaking, taking into account the impact of those measures on the group entities in other Member States. The consolidating supervisor shall notify the decision to EBA and to the other competent authorities within the supervisory college.

Removed3. Where the conditions for the imposition of early intervention measures under Article 27 are met in relation to a subsidiary of a Union parent undertaking, the competent authority responsible for the supervision on an individual basis that intends to take a measure in accordance with those Articles shall notify EBA and consult the consolidating supervisor.

RemovedOn receiving the notification, the consolidating supervisor may assess the likely impact of the imposition of early intervention measures under Article 27 to the institution or entity referred to in Article 1(1), points (b), (c) or (d), in question, on the group or on group entities in other Member States. The consolidating supervisor shall communicate that assessment to the competent authority within 3 days.

RemovedFollowing that notification and consultation the competent authority shall decide whether to apply an early intervention measure. The decision shall give due consideration to any assessment of the consolidating supervisor. The competent authority shall notify the decision to EBA, the consolidating supervisor and other competent authorities within the supervisory college.

Removed4. Where more than one competent authority intends to apply an early intervention measure under Article 27 to more than one institution or entity referred to in Article 1(1), points (b), (c) or (d), in the same group, the consolidating supervisor and the other relevant competent authorities shall assess whether it is more appropriate to appoint the same temporary administrator for all the entities concerned or to coordinate the application of the other early intervention measures to more than one institution or entity in order to facilitate solutions restoring the financial position of the institution or entity concerned. The assessment shall take the form of a joint decision of the consolidating supervisor and the other relevant competent authorities. The joint decision shall be reached within 5 days from the date of the notification referred to in paragraph 1. The joint decision shall be reasoned and set out in a document, which shall be provided by the consolidating supervisor to the Union parent undertaking.

RemovedEBA may, at the request of a competent authority, assist the competent authorities in reaching an agreement in accordance with Article 31 of Regulation (EU) No 1093/2010.

RemovedIn the absence of a joint decision within 5 days the consolidating supervisor and the competent authorities of subsidiaries may take individual decisions on the appointment of a temporary administrator to the institutions or entities referred to in Article 1(1), points (b), (c) or (d), for which they have responsibility and on the application of the other early intervention measures.’;

Removed(c) paragraph 6 is replaced by the following:

Removed‘6. EBA may at the request of any competent authority assist the competent authorities that intend to apply one or more of the measures in Article 27(1a), point (a), of this Directive with respect to the points (4), (10), (11) and (19) of Section A of the Annex to this Directive, in Article 27(1a), point (c), of this Directive or in Article 27(1a), point (d), of this Directive in reaching an agreement in accordance with Article 19(3) of Regulation (EU) No 1093/2010.’;

Removed(15) the following Article 30a is inserted:

Removed‘Article 30a

RemovedPreparation for resolution

Removed1. Member States shall ensure that competent authorities notify the resolution authorities without delay of any of the following:

Removed(a) any of the measures referred to in Article 104(1) of Directive 2013/36/EU they require an institution or an entity referred to in Article 1(1), points (b), (c) or (d), of this Directive to take that aim to address a deterioration in the situation of an institution, that entity or a group;

Removed(b) where supervisory activity shows that the conditions laid down in Article 27(1) of this Directive are met in relation to an institution or entity referred to in Article 1(1), points (b), (c) or (d), of this Directive, 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 27.

RemovedCompetent authorities shall closely monitor, in close cooperation with the resolution authorities, the situation of the institution or entity and their compliance with the measures referred to in the first subparagraph, point (a), that aim to address a deterioration in the situation of that institution or entity and with the early intervention measures referred to in the first subparagraph, point (c).