Version in force , Modified +160 −1,122§
Amended by Regulation (EU) 2019/877 32019R0877 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
Paragraph 2 no longer requires that the parent undertaking's conditions be met together with those of one or more subsidiary institutions or a third-country determination of resolution eligibility, and instead now refers only to the conditions in Article 18(1) being met.
Paragraph 3 removes the reference to derogation from paragraph 2, drops the informing-national-resolution-authority mechanism and the disregard-of-intra-group-transfers subparagraph, and instead conditions the Board's action on the parent undertaking being a resolution entity with subsidiary institutions that are not themselves resolution entities and that meet Article 18(1), tying the necessity test to the resolution of those subsidiaries or of the relevant resolution group.
Cited: Art. 16, v1 (external, EUR-Lex) · Art. 16, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version 32014R0806 → this version, in force 28 December 2020 02014R0806-20201228
Article 16
Resolution of financial institutions and parent undertakings
1. The Board shall decide on a resolution action in relation to a financial institution established in a participating Member State, where the conditions laid down in Article 18(1) are met with regard to both the financial institution and with regard to the parent undertaking subject to consolidating supervision.
2. The Board shall take a resolution action in relation to a parent undertaking referred to in point (b) of Article 2, 2 where the conditions laid down in Article 18(1) are met with regard to both that parent undertaking and with regard to one or more subsidiaries which are institutions or, where the subsidiary is not established in the Union, the third-country authority has determined that it meets the conditions for resolution under the law of that third country. met.
3. By way of derogation from paragraph 2 and notwithstanding Notwithstanding the fact that a parent undertaking does not meet the conditions established in Article 18(1), the Board may decide on a resolution action with regard to that parent undertaking when where it is a resolution entity and where one or more of its subsidiaries which are institutions but are not resolution entities themselves meet the conditions established set out in Article 18(1), (4) and (5) and provided that their assets and liabilities are such that their failure threatens an institution or the group as a whole whole, and resolution action with regard to that parent undertaking is necessary either for the resolution of such those subsidiaries which are institutions or for the resolution of the relevant resolution group as a whole. Where a national resolution authority informs the Board that the insolvency law of the Member State provides that groups be treated as a whole and resolution action with regard to the parent undertaking is necessary for the resolution of such subsidiaries which are institutions or for the resolution of the group as a whole, the Board may also decide on resolution action with regard to the parent undertaking.
For the purposes of the first subparagraph, when assessing whether the conditions in Article 18(1) are met in respect of one or more subsidiaries which are institutions, the Board may disregard any intra-group capital or loss transfers between the entities, including the exercise of write-down or conversion powers.