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62.—(1) This article applies in relation to a relevant group in respect of which the PRA or FCA is the consolidating supervisor.
(2) For the purpose of drawing up or reviewing a group resolution plan the Bank must make an assessment of group resolvability.
(3) For the purpose of making the assessment of group resolvability the Bank must—
(a)consider all relevant matters, including the matters set out in Section C of the Annex to the recovery and resolution directive;
(b)have regard to the circumstances under which group entities may meet the conditions for resolution, in particular—
(i)supposing that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and
(ii)supposing that there is no such a situation or occurrence;
(c)not assume that any of the group entities will be in receipt of—
(i)extraordinary public financial support;
(ii)emergency liquidity assistance; or
(iii)any other liquidity assistance provided by the Bank under non-standard collateralisation, tenor and interest rate terms; and
(d)consult—
(i)the appropriate regulator;
(ii)each relevant competent authority; and
(iii)so far as the plan is relevant to a significant branch which an institution within the relevant group has in another EEA State, the resolution authority established in that State.
(4) Paragraph (3) has effect subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(b)) with respect to the assessment of group resolvability.
(5) The relevant group is deemed to be resolvable if the Bank concludes that it would be feasible and credible to take resolution action or insolvency proceedings in respect of group entities while avoiding to the maximum extent possible any significant adverse effect on the financial system of any EEA State or the continuity of the critical functions of group entities.
(6) The Bank must notify EBA without delay if the relevant group is not deemed to be resolvable.
(7) Where the Bank draws up or reviews a group resolution plan jointly with other resolution authorities, it must make the assessment of group resolvability within the college—
(a)jointly with those authorities; and
(b)after allowing the other members of the college time to consider the matters requiring assessment.
(8) Where the Bank and another resolution authority (“authority A”) are unable to agree a joint assessment of group resolvability, the Bank must—
(a)conclude the assessment, which it may do either alone or jointly with any resolution authority with which it is able to agree a joint assessment; and
(b)ensure that—
(i)the assessment takes account of the views and reservations of authority A; and
(ii)every group entity for which authority A is the resolution authority is excluded from the scope of the assessment.
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