French Insurance Code
In forceI.-When, at the end of the assessment provided for in Article L. 311-11, the resolution college finds that there are significant obstacles to a person mentioned in Article L. 311-5 being subject either to collective proceedings or to resolution measures under the conditions mentioned in that same article, it shall notify the person concerned of this finding and inform the supervisory college.
II - Within four months of this notification, the person concerned shall propose to the resolution college measures aimed at reducing or eliminating the obstacles identified. The resolution college will decide on these measures after receiving the opinion of the supervisory college.
III.Where the resolution college considers that the proposed measures do not make it possible to reduce or remove the reported obstacles, it may, after consulting the supervisory college, take any necessary measure within a time limit which it shall set with regard to the person concerned and in particular:
1° Enjoin a re-examination of the financing arrangements within the group and the fungibility of own funds items within the group;
2° Enjoin a re-examination of the means put in place, in particular the need to conclude service contracts within the group or with third parties, to ensure the performance or supply of critical functions;
3° Enjoining a review of the level of concentration of its individual or aggregated exposures, on the assets and liabilities side of its balance sheet;
4° Imposing additional ad hoc or regular reporting obligations to the Autorité de contrôle prudentiel et de résolution for resolution purposes;
5° Enjoining the disposal of certain assets;
6° Enjoining the limitation or discontinuation of certain current or planned activities, as well as the restriction or prohibition of the development of new or existing activities or the sale of new or existing products;
7° Enjoining the review of reinsurance mechanisms within the group;
8° Enjoin this person or an entity that it directly or indirectly controls, to modify its legal or operational structures in order to reduce complexity and to allow, in the event of the application of resolution measures, the legal and operational separation of critical functions from other functions.
IV-Where the resolution college has made the notification provided for in I, it shall defer the adoption of the individual or group preventive resolution plan relating to the person concerned until the approval of the corrective measures proposed by that person pursuant to II or until the adoption of the measures provided for in III.
V.-The decisions provided for in II and III are taken following an adversarial procedure.
