195. This Chapter applies where a third-country institution(1) or third-country parent undertaking has—
(a)set up a Union subsidiary in the United Kingdom and at least one other EEA State; or
(b)established significant branches in the United Kingdom and at least one other EEA State.
196.—(1) Subject to article 198, the Bank acting jointly with the resolution authorities established in other EEA States in which—
(a)a Union subsidiary has been set up; or
(b)a significant branch is situated,
must establish a European resolution college in accordance with Article 89 of the recovery and resolution directive (European resolution colleges).
(2) The Bank must co-operate closely with other members of the European resolution college in order to facilitate the performance in relation to the Union subsidiaries and, so far as relevant, of the significant branches, of functions and tasks equivalent to the functions and tasks which must be performed in relation to a relevant group in accordance with Article 88 of the recovery and resolution directive (resolution colleges).
(3) Paragraph (4) applies where the Union subsidiaries are subsidiaries of a financial holding company and supervision on the basis of the consolidated situation (within the meaning given by point (47) of Article 4.1 of the capital requirements regulation) is exercised by the PRA or FCA.
(4) The Bank must chair meetings of the European resolution college and perform the other functions of a chair of the college.
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(2) (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.
198.—(1) Article 196(1) does not apply where the Bank and other resolution authorities concerned—
(a)are satisfied that an existing grouping or college of resolution authorities and other persons, including a resolution college established for a relevant group—
(i)could facilitate the performance of the functions and tasks of a European resolution college; and
(ii)would, if used for that purpose, observe in all material respects the same requirements relating to membership, participation, functioning and information exchange as a newly established European resolution college; and
(b)decide that the existing grouping or college is to be used for that purpose.
(2) Where paragraph (1) applies, this Chapter, except article 196(1), applies in relation to the existing grouping or college, where it is used to facilitate the performance of the tasks of a European resolution college, but has effect for that purpose as if each reference to the European resolution college were a reference to the existing grouping or college.
For the meaning of “third-country institution”, “third-country parent undertaking” and “Union subsidiary” see the recovery and resolution directive, Article 2.1, points (86), (87) and (84).
Section 89H was inserted by S.I. 2014/3329.