French Monetary and Financial Code
In forceI. - The resolution board may only take one or more resolution measures in respect of a financial institution mentioned in 3° of I of Article L. 613-34 if the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49 are met in respect of both the financial institution and the parent undertaking supervised on a consolidated basis.
II. - The resolution college may only take a resolution measure in respect of one of the persons mentioned in 4° to 6° of I of Article L. 613-34 if this person and one or more of its subsidiaries that are credit institutions or investment firms meet the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49.
In the case of a subsidiary that qualifies as a credit institution or investment firm established outside the European Union, the condition mentioned in the previous paragraph is met when the competent authority of the third country has established that the subsidiary meets the conditions for triggering a resolution procedure under the legislation of that country.
III. - By way of derogation from II, the resolution board may take resolution measures with regard to one of the persons mentioned in 4° to 6° of I of Article L. 613-34 even though this person does not meet the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49 if all of the following conditions are met:
1° The person is a resolution entity;
2° One or more of its subsidiaries that are credit institutions or investment firms but are not themselves resolution entities meet the conditions for triggering a resolution procedure;
3° Taking into account their assets and liabilities, the failure of the subsidiaries mentioned in 2° threatens the resolution group as a whole.
4° The adoption of resolution measures in respect of the entity is necessary for the resolution of one or more of its subsidiaries which are credit institutions or investment firms or for the resolution of the resolution group as a whole.
IV. - When credit institutions or investment firms are subsidiaries of a mixed holding company and are directly or indirectly held by an intermediate financial holding company, the preventive resolution plan provides that the intermediate financial holding company is identified as the resolution entity and the resolution college takes resolution measures with regard to the intermediate financial holding company and not with regard to the mixed holding company.
V.-In the case of a group comprising a central body mentioned in Article L. 511-30 and the network of institutions and companies affiliated to this central body, the resolution college shall assess whether the conditions for triggering a resolution procedure mentioned in II of Article L. 613-49 are met for the central body and all the affiliates. If this is the case, the resolution college shall take coordinated resolution measures with regard to the central body and all the members.
Pursuant to Article L. 613-51, the resolution college may then exercise all the powers of the central body provided for in Article L. 511-31 in addition to the resolution measures, in particular with a view to redistributing between the central body and all the members the resources resulting from the coordinated application of an internal rescue measure provided for in Article L. 613-55.
