French Monetary and Financial Code
In forceWhere several entities belonging to the same institution of global systemic importance are resolution entities or third-country entities that would be resolution entities if they were established in the Union, the resolution college shall discuss with the relevant authorities of the other Member States and, where appropriate, agree with the latter on the application of Article 72e of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 and on any adjustment that at least reduces or eliminates the difference between:
1° The sum of the amounts mentioned in 2° of VI or VII, as applicable, of Article R. 613-46-3, calculated for each resolution entity and the amounts mentioned in Article 12 of the aforementioned Regulation (EU) No 575/2013 for individual resolution entities;
2° As well as between the sum of the amounts mentioned in 2° of the VI or VII, as the case may be, of Article R. 613-46-3, calculated for the parent entity in the Union as if it were the only resolution entity of the global systemically important institution, and the amounts mentioned in Article 12 of the aforementioned Regulation.
This adjustment:
1° May be applied, where there are differences in the calculation of the total amounts of risk exposure between the Member States concerned, by modulating the level of the requirement;
2° Does not apply where it would tend to eliminate the differences arising from exposures between resolution groups.
The sum of the amounts mentioned in 2° of the VI or VII, as the case may be, of Article R. 613-46-3 and in Article 12 of Regulation (EU) No 575/2013, calculated for each resolution entity, shall not be less than the sum of the amounts mentioned in 2° of the VI or VII, as the case may be, of Article R. 613-46-3 and in Article 12 of Regulation (EU) No 575/2013. 613-46-3 and Article 12 of the same Regulation, calculated for the EU parent entity as if it were the only resolution entity of the globally systemically important institution.
The resolution college shall give reasons for any decision imposing a capital requirement and eligible commitments in addition to those referred to in Articles 92b and 494 of Regulation (EU) No 575/2013 to a resolution entity which is a global systemically important institution or to a significant subsidiary in the European Union of a global systemically important institution from a third country. This statement of reasons shall include a full assessment of the reasons why the college considers that the requirement referred to in Articles 92b and 494 of the same Regulation is insufficient to meet the conditions referred to in VI of Article L. 613-44 and establishes that an additional capital requirement and eligible commitments would be such as to ensure compliance with these conditions.
The resolution board shall review the decision referred to in the previous paragraph without delay in order to take account of any change in the level of the requirement referred to in II of Article L. 511-41-3 applied to the resolution group or to the major EU subsidiary of a global systemically important institution from a third country.
Where, in accordance with the resolution strategy mentioned above, subsidiaries established in the European Union or a parent undertaking in the European Union and its subsidiaries are not resolution entities and the college of European resolution authorities agrees to this strategy, subsidiaries established in the European Union or, on a consolidated basis, the EU parent undertaking, shall comply with their minimum capital and eligible liability requirements by issuing instruments to their ultimate parent undertaking established in a third country, or to subsidiaries of the ultimate parent undertaking established in the same third country or to other entities.
