French Insurance Code
In forceI.-The following are subject to the obligation to draw up and maintain a preventive recovery plan:
1° The persons referred to in Article L. 311-1, whose total assets, assessed in accordance with the provisions of Title V of Book III, have exceeded a threshold set by order of the Minister for the Economy at least once in the last three financial years;
2° The persons referred to in Article L. 311-1, subject to group supervision by the Autorité de contrôle prudentiel et de résolution pursuant to Article L. 356-2, whose total consolidated assets at the level of the parent company with the largest shareholding in France, other than a société de groupe mixte d'assurance, valued in accordance with the provisions of Title V of Book III, have exceeded a threshold set by order of the Minister for the Economy at least once in the last three financial years.
The threshold mentioned in 1° and 2° is set taking into account the significant size of the persons concerned, with regard to the resolution objectives mentioned in I of article L. 311-22.
The persons mentioned in 1° shall draw up preventive recovery plans on an individual basis, unless these persons belong to a group required to draw up such a plan pursuant to the first paragraph. The persons referred to in the first paragraph of this 2° shall draw up group preventive recovery plans at the level of the ultimate parent undertaking in France.
The persons mentioned in 1° and in the first paragraph of this 2° who are part of a group whose ultimate parent undertaking is located abroad may be exempted by the supervisory board of the Autorité de contrôle prudentiel et de résolution from the obligation to draw up and maintain a preventive recovery plan.
II -The supervisory board may also, after an adversarial procedure, request any person mentioned in Article L. 311-1 but below the thresholds mentioned in 1° and 2° of I, whose activity would present a specific risk in the event of failure or who performs a critical function within the meaning of Article L. 311-2, to submit a preventive recovery plan.
III - The supervisory board may authorise some of the persons mentioned in I and II, taking into account the characteristics mentioned in Article L. 311-3, to draw up a preventive recovery plan using simplified procedures. It may withdraw this authorisation at any time.
IV - The individual or group preventive recovery plan aims to deal with a significant deterioration in the financial situation of the persons concerned or the group concerned in the event of a crisis. It provides for a wide range of measures that would make it possible, in this context, to ensure the recovery of these individuals. It shall ensure that the negative effects of the crisis on the financial system are avoided or reduced, including in the event that other insurance undertakings, mutual insurers or associations or provident institutions or groups are likely to implement their own plan during the same period.
This plan defines several indicators against which the implementation of recovery measures may be decided. The persons concerned shall set up a system for regular monitoring of these indicators.
The plan shall include mechanisms to ensure the coordination and consistency of these measures at the level of the person concerned and, where applicable, within the group, as well as procedures to ensure their rapid implementation.
This plan does not take into account any possible public support.
V.-Preventive recovery plans are subject to approval by the board of directors or the supervisory board of the person concerned, prior to their transmission to the college of supervisors, for their adoption and each time they are amended.
The content of these plans, their frequency, the information sent to the supervisory board and the conditions under which they are drawn up and updated are specified by order of the Minister for the Economy.
