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

Procedure for early intervention in respect of a UK group entity

117.—(1) This article applies where the appropriate regulator proposes to take a measure for early intervention in respect of a UK group entity.

(2) The appropriate regulator must without delay give notice of its proposal to the Bank, other relevant competent authorities, the consolidating supervisor and the EBA.

(3) The appropriate regulator must not take a measure for early intervention in respect of a UK group entity without—

(a) allowing three days, beginning with the day on which it gives notice under paragraph (2), for consultation with the consolidating supervisor about the proposal; and

(b) taking account of—

(i) any assessment by the consolidating supervisor of the impact that the measure would have on any group entity or on the relevant group as a whole; and

(ii) the potential impact of the measure on group entities set up in another EEA State and the stability of the financial system of that State.

(4) The appropriate regulator must give the recipients of a notice given under paragraph (2) notice of a decision to take a measure for early intervention in respect of a UK group entity.

(5) The appropriate regulator may not take a measure for early intervention in respect of a UK group entity without prescribing a date before which the action required to be taken in compliance with the measure is to be completed.

(6) The appropriate regulator must give the UK group entity referred to in a notice given under paragraph (4) and the EEA parent undertaking, if it is not the entity concerned, written notice of its decision to take a measure for early intervention, including a reasoned account of the decision.