Subject matter, scope and definitions
Subject matter
These guidelines specify, in accordance with Article 9(2) of Directive 2014/59/EU(2), the minimum list of quantitative and qualitative recovery plan indicators, to be included in the recovery plans developed and assessed in accordance with Articles 5 to 9 of that Directive as further specified in Articles 3 to 21 of Commission Delegated Regulation (EU) 2016/1075(3), the appropriate arrangements for the regular monitoring of such indicators, the points at which actions referred to in the recovery plans may be taken, the action to be taken in relation to these indicators and any condition necessary for the application of Article 9(1) of Directive 2014/59/EU with regard to these indicators.
Scope of application
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, these guidelines apply at the level of the Union parent undertaking and at the level of its subsidiaries.
Competent authorities may specify how to apply all or part of these guidelines to institutions which are subject to simplified obligations with regard to their recovery plans as set out in Article 4 of Directive 2014/59/EU.
Competent authorities may waive the application of certain indicators or conditions set out in paragraphs 21 to 23 to 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 but also to its legal structure, risk profile, size or complexity.
Addressees
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.
Definitions
Unless otherwise specified, terms used and defined in Directive 2014/59/EU, Directive 2013/36/EU and Directive (EU) 2019/2034 (opens EUR-Lex in a new tab) have the same meaning in the guidelines.
For the purpose of these guidelines, the following definitions apply:
‘competent authority’ | means the competent authority as defined in point 21 of Article 2(1) of Directive 2014/59/EU and the consolidating supervisor as defined in point 37 thereof as well as the competent authority as defined in point 5 of Article 3 (opens EUR-Lex in a new tab) of Directive (EU) 2019/2034 (opens EUR-Lex in a new tab) and the group supervisor as defined in point 15 thereof |
‘institution’ | means the institution as defined in point 23 of Article 2(1) of Directive 2014/59/EU and the Union parent undertaking as set out in point 26 thereof |
‘overall recovery capacity’ | means the capability of restoring the financial position of an institution or of a group in their entirety following a significant deterioration |
‘recovery plan’ | means the recovery plan set out in Articles 5 and 6 of Directive 2014/59/EU and the group recovery plan set out in Articles 7 and 8 of that Directive |
‘recovery plan indicators’ | refer to qualitative and quantitative indicators established by each institution on the basis of the framework laid down in these guidelines to identify the points at which appropriate actions referred to in the recovery plan may be taken as set out in Article 9(1) of Directive 2014/59/EU |