French Monetary and Financial Code
In forceI. - Where the Autorité de contrôle prudentiel et de résolution, as the authority responsible for supervision on a consolidated basis, intends to take one or more of the measures provided for in Articles L. 511-41-5 or L. 612-34-1 against the parent undertaking of a group, it shall notify its intentions to the European Banking Authority and, where appropriate, to the other competent authorities.
In reaching its decision, the Autorité de contrôle prudentiel et de résolution shall take into account the impact of these measures on the group's entities in other Member States.
It shall notify its decision to the other member authorities of the college of supervisors established pursuant to Article L. 613-20-2 and to the European Banking Authority.
The above provisions shall apply where the proposed measures concern subsidiaries of the parent undertaking of the group which fall within the remit of the Autorité de contrôle prudentiel et de résolution.
II. - When the Autorité de contrôle prudentiel et de résolution is notified by the competent authority of another Member State of the European Union or party to the Agreement on the European Economic Area of measures equivalent to those provided for in Articles L. 511-41-5 or L. 612-34-1 envisaged against a credit institution or investment firm belonging to a group for which it is the supervisory authority on a consolidated basis, and that it has assessed the impact of these measures on the person concerned, on the group as a whole and on the other entities that make it up, the Authority shall communicate its assessment to the competent authorities concerned.
In the event of disagreement with the competent authority mentioned above, the Autorité de contrôle prudentiel et de résolution may refer the matter to the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010.
III. - Where it is intended to take one or more of the measures provided for in I or equivalent measures against several credit institutions or investment firms belonging to the same group and falling within the jurisdiction of several competent authorities, the Autorité de contrôle prudentiel et de résolution, as the supervisory authority on a consolidated basis, shall endeavour to reach a joint decision with the competent authorities concerned on :
1° The appointment, where appropriate, of a single temporary administrator for all the entities concerned ;
2° The coordinated application, where appropriate, of the measures provided for in Article L. 511-41-5 with those that may be taken by the other competent authorities in order to restore the financial situation of the group of entities concerned.
In order to reach a joint decision, the Autorité de contrôle prudentiel et de résolution may refer the matter to the European Banking Authority on the basis of Article 31 of Regulation (EU) 1093/2010 of the European Parliament and of the Council of 24 November 2010. It may also refer the matter to the same European Banking Authority on the basis of Article 19 of the same Regulation (EU) in the event of disagreement on the implementation of the measures provided for in the preventive recovery plan aimed at modifying the capital and liquidity of the entity concerned, preserving or reconstituting its own funds, guaranteeing its access to emergency sources of financing, including from other entities in the group, or facilitating its recapitalisation. The Autorité de contrôle prudentiel et de résolution may also refer the matter to the European Banking Authority if it disagrees on the implementation of the measures provided for in 4° or 6° of II of Article L. 511-41-5 or on equivalent measures.
In the absence of a joint decision, the Autorité de contrôle prudentiel et de résolution alone shall decide on the measures applicable to the persons under its jurisdiction, taking into account the opinions and reservations expressed by the other competent authorities and the impact of its decision on financial stability in the other Member States of the European Union concerned or parties to the Agreement on the European Economic Area.
IV. - In the event that the Autorité de contrôle prudentiel et de résolution or one of the competent authorities concerned has referred the matter to the European Banking Authority on the basis of Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, the Autorité de contrôle prudentiel et de résolution shall defer its decision referred to in I or in the last paragraph of III pending the decision of the European Banking Authority. The Autorité de contrôle prudentiel et de résolution shall take its decision in accordance with the decision of the European Banking Authority.
In the absence of a decision by the European Banking Authority within three days, the decision referred to in I or the last paragraph of III shall apply.
V. - The Autorité de contrôle prudentiel et de résolution shall notify the persons under its jurisdiction of the reasoned decisions referred to in I, III and IV.
Decisions taken by other competent authorities are, where applicable, applicable in France.
