French Monetary and Financial Code
In forceI. - Where it is responsible for the supervision of a group on a consolidated basis, the college of supervisors shall communicate the preventive group recovery plans referred to it pursuant to VII of Article L. 613-35:
1° To the competent authorities responsible for the supervision of subsidiaries established in another Member State of the European Union ;
2° To the competent authorities of the other Member States of the European Union where branches of significant importance are established;
3° Where applicable and subject to equivalent confidentiality obligations, to the other competent authorities referred to in I of Article L. 613-20-2;
4° To the collège de résolution ;
5° To the resolution authorities of these subsidiaries.
II. - The supervisory board shall examine and assess the preventive group recovery plans jointly with the competent authorities mentioned in 1° and 2° of I after consulting the other competent authorities mentioned in 3° of I.
It shall ensure that the group meets the requirements of V and VI of Article L. 613-35 and the regulatory provisions adopted for its application.
In particular, it shall assess its ability to maintain or restore the viability and financial situation of the persons concerned or the group to which they belong. The assessment shall take into account the potential impact of the recovery measures on financial stability in all the Member States of the European Union in which the group operates.
It shall verify that the plan and the various measures provided for therein are such as to be implemented rapidly and effectively in situations of financial crisis and to avoid, as far as possible, any significant adverse effects on the financial system, including in scenarios which would lead other credit institutions or investment firms to implement preventive recovery plans during the same period.
In this review, it shall take into account the adequacy of the capital and funding structure of the persons or group concerned in relation to the complexity of their organisational structures and their risk profiles.
III. - Within four months of the communication provided for in I, the college of supervisors shall endeavour to reach a joint decision with the competent authorities mentioned in 1° of I on :
1° Examination and assessment of the group's preventive recovery plan ;
2° Whether the persons referred to in 4° of I of Article L. 613-35 established in a Member State of the European Union are subject to the obligation to draw up an individual preventive recovery plan;
3° Decisions taken pursuant to II, III, IV and V of Article L. 613-36.
The supervisory board may adopt a joint decision with the competent authorities with which it does not disagree concerning the group preventive recovery plan applicable to persons falling within their respective jurisdictions.
IV. - In order to reach a joint decision under the conditions set out in III, and without prejudice to any decision taken on the basis of the last paragraph of the same III, the supervisory board may:
1° Refer the matter to the European Banking Authority on the basis of Article 31 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 ;
2° 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 in the event of disagreement on the review and assessment of the group's preventive recovery plan or on the measures that the EU parent undertaking or its subsidiaries may be ordered to take pursuant to 1°, 2° and 4° of V of Article L. 613-36.
V. - In the absence of a joint decision within four months, the supervisory board alone decides:
1° On the points mentioned in 1° and 3° of III concerning the parent undertaking in the Union. It shall take account of the opinions and reservations expressed by the other competent authorities;
2° On the points mentioned in 2° and 3° of III concerning subsidiaries which fall within its competence.
VI. - In the event that the college of supervisors 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, within the prescribed timeframe, the college of supervisors shall defer its decision pending the decision of the European Banking Authority. The supervisory board 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 one month, the decision referred to in V shall apply.
VII. - The college of supervisors shall notify :
1° To the EU parent undertaking and the subsidiaries which fall within its remit, each insofar as it is concerned, the joint decisions taken pursuant to III and VI or the decisions taken pursuant to V ;
2° To the other competent authorities, decisions taken pursuant to 1° of V.
Decisions taken solely by the other competent authorities that apply to subsidiaries under their jurisdiction are, where applicable, applicable in France.
