French Monetary and Financial Code
In forceI. - The provisions of this section apply to the following persons:
1° The credit institutions defined in Article L. 511-1 and the central bodies mentioned in Article L. 511-30 ;
2° Investment firms within the meaning of Article L. 531-4 and branches of third country firms mentioned in Article L. 532-48, with the exception of those which exclusively provide one or more of the investment services mentioned in 1, 2, 4 or 5 of Article L. 321-1 and which are not authorised to provide the related service of custody account-keeping for financial instruments mentioned in 1 of Article L. 321-2;
3° Financial institutions referred to in Article L. 511-21 (4) that are subsidiaries of a credit institution, investment firm or company referred to in 4° to 6° of this Article and to which the supervision on a consolidated basis of their parent company applies, on the basis of Articles 6 to 17 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
4° Financial holding companies and parent financial holding companies in a Member State or in the Union, within the meaning of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
4°a Investment holding companies and EU parent investment holding companies;
5° Mixed financial holding companies and parent mixed financial holding companies in a Member State or in the Union, within the meaning of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
6° Mixed holding companies, within the meaning of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013;
In the case of branches of credit institutions referred to in I of Article L. 511-10 and third-country undertakings, only the provisions of IV of this Article, V of Article L. 613-62 and Article L. 613-62-1 shall apply to them.
Unless otherwise provided, the provisions of this section applicable to credit institutions shall apply under the same conditions to the central bodies mentioned in Article L. 511-30.
The provisions of this section do not apply to the persons mentioned in this I who are also authorised as clearing houses in accordance with the provisions of Article L. 440-1.
II. - Without prejudice to the rules applicable to it when it falls under 3° to 5° of I, the supervisory board may, after receiving the opinion of the resolution board, require a finance company or a parent undertaking of a finance company, which it considers poses a specific risk in terms of financial stability, to draw up a preventive recovery plan in application of the provisions of sub-section 2 of this section. In this case, the rules laid down in this Section, in Section 5 of this Chapter and in Section 3 of Chapter II of Title I of Book III shall apply to that company or parent undertaking, subject in particular to the activity threshold and to the powers granted by law to the general meetings of those companies.
The provisions of Articles L. 613-51 and L. 613-51-1 do not apply to them. Instead of a special administrator, the resolution college may appoint the administrator referred to in Article L. 612-34-1.
The resolution board may require the person concerned to issue new shares or other equity instruments, including preference shares and additional convertible instruments.
Where the resolution board makes use of the powers referred to in Article L. 613-55, III of that Article shall not apply.
For the application of the powers mentioned in sub-sections 9 and 10 of this section, the resolution board shall, if necessary, convene the general meeting of the person concerned.
A decree of the Conseil d'Etat shall set the conditions for the application of this II and adapt the provisions of this section where necessary.
III. - For the application of the provisions of this section, the powers entrusted to the supervisory college shall be exercised by the European Central Bank for the persons mentioned in I whose supervision falls within its direct competence pursuant to Council Regulation (EU) No 1024/2013 of 15 October 2013.
For the application of the provisions of this section, the powers entrusted to the resolution college shall be exercised by the Single Resolution Board where they fall within its competence pursuant to Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014.
IV-Credit institutions and investment firms referred to respectively in 1° and 2° of I, as well as, where applicable, the finance companies referred to in II, shall contribute to the resolution financing arrangements for which they are responsible under the conditions set out in Section 3 of this chapter.
