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

Determining remedial measures

77.—(1) This article applies where the Bank has received from the group-level resolution authority—

(a) any observations submitted by the EEA parent undertaking on the report on impediments and remedial measures; or

(b) a proposal by that undertaking to take alternative remedial measures (“alternative proposal”).

(2) The Bank must endeavour within the college, jointly with the group-level resolution authority and other resolution authorities for group entities, to—

(a) confirm the impediments with or without modification;

(b) assess any alternative proposal; and

(c) determine remedial measures—

(i) where the resolution authorities conclude within the college that the measures set out in an alternative proposal would adequately address or effectively remove the impediments, by approving that proposal (with or without modification);

(ii) otherwise, by joint decision to specify the measures which are to be taken.

(3) In considering any matter referred to in paragraph (2) the Bank must take account of—

(a) the threat to financial stability posed by the impediments; and

(b) the effect of remedial measures determined by joint decision on—

(i) the business and financial stability of each group entity and its ability to contribute to the economy of the United Kingdom and other EEA States;

(ii) the EEA market for financial services;

(iii) the financial stability of any EEA State or of the EEA as a whole.

(4) Paragraphs (5) and (6) apply where remedial measures determined under paragraph (2) are to be implemented by a group entity set up in the United Kingdom.

(5) The Bank must exercise pre-resolution powers with the object of requiring the entity to take the remedial measures.

(6) In a direction given for that purpose, the Bank—

(a) if it has specified the measures which are to be taken, must demonstrate how the measures set out in an alternative proposal would not adequately address or effectively remove the impediments;

(b) must demonstrate how the remedial measures will adequately address or effectively remove the impediments in a manner proportionate to the burden or restriction imposed by the direction; and

(c) must require the entity to—

(i) prepare a plan showing how it will comply with the remedial measures; and

(ii) submit that plan within one month beginning on the date of the direction.