French Monetary and Financial Code
In forceI. - Where the College of Resolution is the resolution authority on a consolidated basis, it shall carry out the assessment referred to in I of Article L. 613-41 within the framework of the college of resolution authorities set up pursuant to the second paragraph of I of Article L. 613-40.
The assessment shall be drawn up in accordance with the conditions set out in III, IV and V of Article L. 613-40.
II. - The College of Resolution, after consulting the college of supervisors and the resolution authorities responsible for the branches of significant importance concerned, shall endeavour to reach a joint decision with the resolution authorities of the subsidiaries concerned on the implementation of the measures provided for in III of Article L. 613-42 with regard to all the credit institutions and investment firms that are part of the group. This decision shall take into account the assessment made pursuant to I.
III. - The resolution college shall, in cooperation with the supervisory college and the European Banking Authority, after consultation with the competent authorities for each of the subsidiaries of the group, prepare a report analysing the significant impediments to the effective application of the resolution measures in relation to the group and their impact on the business model of the group. The report recommends any proportionate measures needed to remove these obstacles.
The report is sent by the resolution college to the parent undertaking within the meaning of I of Article L. 511-20, to the subsidiaries which fall within its remit, to the resolution authorities of the group's subsidiaries and to the resolution authorities responsible for branches of significant importance.
Where an obstacle to the resolution group being wound up or being subject to one or more resolution measures under the conditions mentioned in I of Article L. 613-41 is attributable to the fact that an entity in the group is in one of the situations described in IIa of Article L. 613-42, the resolution college shall forward its assessment of this obstacle to the parent undertaking, after consulting the resolution authority of the resolution entity and the resolution authorities of its subsidiaries.
IV. - Within four months of the communication of the report, the parent undertaking may submit observations and propose other measures to the resolution college to remedy the obstacles identified in the report.
Where the impediments identified in the above-mentioned report are attributable to an entity of the group which is in one of the situations referred to in IIa of Article L. 613-42, the parent undertaking shall propose to the resolution college, within two weeks of the date of receipt of a notification made in accordance with III, measures to ensure compliance by that entity with the requirements set out in Article L. 613-44 and, where applicable, with the overall capital cushion requirement. It shall also propose to the collège de résolution a timetable for the implementation of these measures, which shall be drawn up taking into account the factors at the origin of the significant obstacles.
V. - The resolution college communicates the measures proposed by the parent undertaking:
1° To the supervisory authority on a consolidated basis or to the college of supervisors when it is the supervisory authority on a consolidated basis ;
2° To the European Banking Authority;
3° To the resolution authorities of the group's subsidiaries established in another Member State;
4° To the competent resolution authorities for branches of significant importance, insofar as these are concerned.
VI. - Within four months following the communication of the report to the parent undertaking or the transmission by the parent undertaking of proposals for alternative measures, the resolution college shall endeavour to reach a joint decision with the authorities mentioned in V within the college of resolution authorities on :
1° The identification of significant obstacles to the group entities being wound up or being subject to resolution measures under the conditions mentioned in I of Article L. 613-41 ;
2° If applicable, an assessment of the measures proposed by the parent undertaking to reduce or eliminate these obstacles;
3° The assessment of the measures required to reduce or remove these obstacles by the resolution college and the other resolution authorities concerned.
The resolution college shall take into account the potential impact of the measures referred to in 2° and 3° in all Member States in which the group is present.
If the parent undertaking has not proposed alternative measures, the resolution college shall endeavour to reach a joint decision within one month of the expiry of the period referred to in the first paragraph.
In the event that the obstacle to the resolution group being wound up or being subject to one or more resolution measures under the conditions mentioned in I of Article L. 613-41, which is the subject of the joint decision, is attributable to the fact that one of the entities of the group is in one of the situations described in IIa of Article L. 613-42, the resolution college shall endeavour to reach this decision within two weeks of the transmission by the parent undertaking of the proposals mentioned in the second paragraph of IV.
VII. - In order to reach a joint decision under the conditions set out in VI, the collège de résolution may:
1° Refer the matter to the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 ;
2° Refer the matter to the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 in the event of disagreement over the adoption of the measures referred to in 7°, 8° and 11° of III of Article L. 613-42 against the EU parent undertaking or its subsidiaries.
VIII. - In the absence of a joint decision within a period of four months, the resolution college alone decides:
1° On the measures to be taken at group level pursuant to III of Article L. 613-42, taking into account, where applicable, the opinions and reservations expressed by the other resolution authorities of the subsidiaries concerned;
2° On the measures to be taken in application of III of Article L. 613-42 at the level of the subsidiaries falling within its remit, taking account, where appropriate, of the opinions and reservations expressed by the other resolution authorities concerned;
3° On the measures to be taken in application of III of Article L. 613-42 at the level of the resolution group for the resolution entities under its jurisdiction.
In the event that the resolution college or one of the other resolution authorities concerned has referred the matter to the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, within the stipulated timeframe, the resolution college shall defer its decision pending the decision of the European Banking Authority. The resolution college shall take its decision in accordance with the decision of the European Banking Authority.
In the absence of a decision by the European Banking Authority within one month, the decisions referred to in 1°, 2° and 3° shall apply.
IX. - The decisions taken by the resolution authorities of the subsidiaries are, where applicable, applicable in France.
The collège de résolution shall notify :
1° To the parent undertaking of the decisions taken pursuant to VI or the second and fourth paragraphs of VIII ;
2° to the subsidiaries for which it is responsible of the decisions taken pursuant to the third and fourth paragraphs of VIII.
