The Bank Recovery and Resolution (No. 2) Order 2014

Recognition of third-country resolution action

197.—(1) This article applies where a European resolution college facilitates the performance of the task referred to in Article 94 of the recovery and resolution directive (recognition and enforcement of third-country resolution proceedings) of reaching a joint decision on whether to recognise third-country resolution action in respect of a third-country institution or third-country parent undertaking.

(2) This article also applies where the third-country institution or third-country parent undertaking has assets, rights or liabilities which are governed by the law of two or more EEA States (whether or not a Union subsidiary has been set up or a significant branch has been established in those States).

(3) The resolution authority established in each of those EEA States may be a member of the European resolution college even though no Union subsidiary is set up and no significant branch is established in the State concerned.

(4) Where the members of the European resolution college reach a joint decision on the recognition of third-country resolution action, the Bank must ensure that the third-country instrument made under section 89H(2) of the Banking Act 2009(1) (recognition of third-country resolution actions)—

(a) recognises the action,

(b) refuses to recognise the action, or

(c) recognises part of the action and refuses to recognise the remainder,

as appropriate for securing that it conforms with the joint decision.

(5) Where the members of the European resolution college are unable to reach a joint decision on the recognition of third-country resolution action, the Bank, before making its decision under section 89H(2) of the Banking Act 2009, must give due consideration to—

(a) the interests of the other EEA States whose resolution authorities are members of the college; and

(b) the potential impact of recognising the third-country resolution action on other group entities and on the financial stability of those States and of the third country concerned.

(6) In this article “third-country resolution action” has the meaning given in section 89H(7) of the Banking Act 2009.

(1)

Section 89H was inserted by S.I. 2014/3329.