Section 7: Prudential provisions

I. - Without prejudice to Articles L. 511-41-3 and L. 612-30 to L. 612-34, the Autorité de contrôle prudentiel et de résolution may order a credit institution, a class 1 bis investment firm or a finance company referred to in II of Article L. 613-34 to take one or more of the early intervention measures mentioned in II when, as a result in particular of a rapid deterioration in its financial or liquidity situation, including an increase in the level of leverage, non-performing loans or concentration of exposures, that person is in breach or is likely in the near future to be in breach of the requirements resulting from the provisions of :

1° Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 ;

2° Articles 3 to 7, 14 to 17 and 24 to 26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014;

3° This Title and Title III of this Book;

4° Any other legislative or regulatory provision, failure to comply with which entails failure to comply with the aforementioned provisions.

II. - In the cases mentioned in I, a credit institution, a class 1 bis investment firm or a finance company mentioned in II of Article L. 613-34 may be ordered to take at least one or more of the following early intervention measures:

1° Apply one or more of the measures set out in the preventive recovery plan referred to in Article L. 613-35, if necessary after updating the plan if the circumstances leading to the implementation of the measures in question differ from the initial assumptions in the plan;

2° Submit a specific recovery programme for approval by the Autorité de contrôle prudentiel et de résolution, in order to overcome the difficulties identified, in accordance with the form and procedure set out in Article L. 612-32 ;

3° Terminate the functions or mandates of the persons mentioned in Article L. 511-13 or 4 of Article L. 532-2, of the members of the board of directors, of the supervisory board or of any other body exercising equivalent supervisory functions if these persons are no longer able to perform their functions in compliance with the requirements set out in Articles L. 511-51, L. 511-52, L. 533-25 or L. 533-26;

4° Draw up an action plan with a view to restructuring its debt with all or some of its creditors in accordance, where applicable, with the preventive recovery plan provided for in Article L. 613-35;

5° Change its business strategy;

6° Modify its legal or operational structure.

Where the person referred to in the first paragraph is a parent undertaking or a subsidiary within the meaning of Article L. 511-20, Articles III and IV of Article L. 613-20-4, Articles L. 613-21-3 or L. 613-21-4, as applicable, shall apply.

The Autorité de contrôle prudentiel et de résolution sets the deadline for implementing the above measures.

III. - For the purposes of implementing the measures referred to in II, the Autorité de contrôle prudentiel et de résolution may order the persons referred to in Article L. 511-13 or Article L. 532-2(4), the board of directors, the supervisory board or any other body exercising equivalent supervisory functions to convene a general meeting of a person referred to in I. It sets the agenda for the meeting. It sets the agenda. If the meeting has not been convened by the deadline set by the Autorité de contrôle prudentiel et de résolution, the latter shall convene the meeting itself.

IV. - The supervisory board shall inform the resolution board without delay of any measure taken pursuant to this article.