French Insurance Code
In forceI.-When carrying out the assessment referred to in Articles L. 311-11 and R. 311-7, the resolution college of the Autorité de contrôle prudentiel et de résolution shall examine :
1° The ability of the person concerned to identify within itself and, where applicable, within the group to which it belongs, the activities representing a significant source of income or profit and the critical functions resulting from its activity;
2° The extent to which the legal structures and organisation of the person concerned and, where applicable, of the group to which it belongs, make it possible to ensure the continuity of the activities representing a significant source of income or profit and the critical functions resulting from the activity of this person or this group;
3° The systems and procedures put in place to ensure that the person concerned and, where applicable, the group to which it belongs, have sufficient resources in terms of staff and access to information systems to ensure the continuity of activities representing a significant source of revenue or profit and of the critical functions resulting from its activity;
4° Any obstacles to the continuation of service contracts necessary for the performance of activities representing a significant source of income or profits and critical functions in the event of the implementation of resolution proceedings against the person concerned and, where applicable, the group to which it belongs;
5° The existence of transitional procedures and arrangements that may be implemented in the event that the person concerned were to divest itself of critical functions or activities representing a significant source of income or profits;
6° The ability of the relevant person's information systems to produce accurate and complete data relating to activities representing a significant source of income or profit and to critical functions within a short timeframe and which are necessary for the preparation and implementation of a resolution procedure by the resolution college of the authority;
7° The results of the tests of the information systems implemented by the person concerned on the basis of the crisis scenarios defined by the authority's college of resolution;
8° The ability to ensure the continuity of the information systems of the person concerned, including for the benefit of another insurance undertaking, in the event that critical functions or activities representing a significant source of income or profits are separated from the rest of the activities in the context of a resolution procedure;
9° The existence within the undertaking or the implementation by the person concerned of processes enabling it to provide the authority's college of resolution with information relating to the identification of policyholders, subscribers and beneficiaries of insurance contracts and the amounts of claims covered by the guarantee funds;
10° If there are intra-group guarantees within a group, the financial terms of these guarantees compared to market terms and the risk management systems relating to these guarantees;
11° The risk of contagion within a group linked to the existence of risk transfer or intra-group guarantees;
12° The extent to which the legal or organisational structure of the group constitutes an obstacle to the implementation of the resolution measures provided for in Articles L. 311-29 to L. 311-49, in particular because of the number of entities it comprises, the complexity of its organisation or the difficulty of assigning activities to specific entities within the group;
13° Where the assessment also covers a mixed insurance group company, the impact of the implementation of a resolution procedure on the group's non-financial entities;
14° The extent to which the applicable legislation of another Member State of the European Union or of a third country allows the authorities of that country to support the measures taken by the resolution college of the Autorité de contrôle prudentiel et de résolution and, if applicable, the possibilities for coordinated action with the authorities of that country;
15° The possibility of effectively implementing one or more of the resolution measures provided for in Articles L. 311-29 to L. 311-49 against the person concerned or the group to which it belongs, so as to achieve the resolution objectives mentioned in I of Article L. 311-22, in particular with regard to the nature of these measures and the organisation of the person concerned or of the group;
16° In the case of groups that include subsidiaries established in several States, the procedures and means for facilitating the implementation of resolution measures;
17° The possibility that one or more resolution measures may be effectively implemented with regard to the person concerned or the group to which it belongs in a manner that meets the objectives of resolution mentioned in I of Article L. 311-22, taking into account, on the one hand, their potential impact on creditors, persons having the status of counterparties, subscribers and beneficiaries and the personnel of the person or group and, on the other hand, where applicable, the measures that the authorities of other States might take;
18° The direct or indirect impact on the financial system, subscribers, members and beneficiaries or the real economy of the implementation of a resolution measure with regard to the person concerned and, where applicable, the group to which it belongs;
19° The extent to which the implementation of one or more resolution measures in respect of the person concerned or the group makes it possible to limit the risk of contagion to other insurance undertakings or groups, credit institutions or investment firms or to the financial markets;
II - Where the assessment provided for in Article L. 311-11 relates to a group, the persons concerned also include the persons mentioned in 1° to 7° of Article L. 311-1 who are part of the same group.
