Subject matter, scope and definitions

These guidelines specify how institutions should include in the recovery and group recovery plans a summary of their overall recovery capacity in accordance with Articles 5 and 7 and Annex, Section A, point (1) of Directive 2014/59/EU⁽¹⁰⁾ and with Chapter 1, Section II of Commission Delegated Regulation (EU) 2016/1075⁽¹¹⁾ and how competent authorities should assess the overall recovery capacity of institutions within the context of the assessment of the recovery and group recovery plans in accordance with Articles 6 and 8 of that Directive and with Chapter 1, Section III of that Commission Delegated Regulation.

These guidelines apply to institutions as defined in point 23 of Article 2(1) of Directive 2014/59/EU subject to the obligations set out in Articles 5 to 9 of that Directive as further specified in Articles 3 to 21 of Commission Delegated Regulation (EU) 2016/1075.

For institutions that are not part of a group subject to consolidated supervision pursuant to Articles 111 and 112 of Directive 2013/36/EU, these guidelines apply at the individual level.

For institutions that are part of a group subject to consolidated supervision pursuant to Articles 111 and 112 of Directive 2013/36/EU⁽¹²⁾, these guidelines apply at the level of the Union parent undertaking and at the level of its subsidiaries.

Competent authorities may waive part of paragraphs 26, and from 41 to 47, for institutions that are investment firms, where their application would not be appropriate for the recovery planning of the investment firm or the investment firm group having regard to its business model as well as its legal structure, risk profile, size or complexity.

These guidelines are addressed to competent authorities as defined in points (2)(i) and (2)(viii) of Article 4 of Regulation (EU) No 1093/2010 and to financial institutions as defined in point (1) of Article 4 of Regulation (EU) No 1093/2010 where these financial institutions fall within the scope of these guidelines.

Unless otherwise specified, terms used and defined in Directive 2014/59/EU, Directive 2013/36/EU and Directive 2019/2034/EU (opens EUR-Lex in a new tab) have the same meaning in the guidelines.