1. Compliance and reporting obligations

Status of these guidelines

Reporting Requirements

1. Subject matter

These guidelines specify the minimum criteria that a business reorganisation plan is to fulfil for approval by the resolution authority pursuant to Article 52(7) of Directive 2014/59/EU.

2. Addressees

These guidelines are addressed to resolution authorities and competent authorities.

3. Definitions

3.1 ‘Base case’ has the meaning set out in [Article 1(4) of the EBA/RTS/2015/12].

3.2 ‘Reorganisation period’ has the meaning set out in [Article 1(3) of the EBA/RTS/2015/12].

3.3 ‘Restructuring plan’ means a plan submitted by the institution or entity in relation to the provision of State aid in accordance with Articles 107 and 108 of the TFEU.

For the purposes of the approval of the business reorganisation plan pursuant to Article 52(7), the resolution authority and the competent authority should assess the business reorganisation plan at least against the minimum criteria set out in paragraphs (2) to (5) of this Title II.

1. Coordination between resolution and competent authorities

1.1 The resolution authority and the competent authority should establish appropriate working arrangements for the submission, assessment and approval of business reorganisation plans.

1.2 The indicative timeline of the envisaged actions should provide enough time for each authority to assess the business reorganisation plan after its submission, but also allow sufficient time for each authority to express any concern, to examine the concerns raised by the other authority and agree on the appropriate action, taking into account the deadlines provided in Article 52(7) to (10) of Directive 2014/59/EU.

1.3 Both the resolution and the competent authorities should coordinate communication and, when possible, submit one joint reply to the institution or entity referred to in points (b), (c) and (d) of Article 1(1) of Directive 2014/59/EU. Such communication should allow for the possibility for improvements by that institution or entity, in line with the procedure identified in Article 52(7) to (10) of Directive 2014/59/EU.

1.4 The competent authority should provide its agreement to the approval of the business reorganisation plan by the resolution authority in writing. 1.5 The resolution authority should share with the competent authority all the progress reports submitted to it by the management body or the person or persons appointed in accordance with Article 72(1) of Directive 2014/59/EU without undue delay.

1.6 Following each submission of the progress report, the resolution and the competent authorities should establish working arrangements to coordinate and share their assessment and communication to the progress report. Such arrangements should provide time for each authority to assess the progress report, but also allow sufficient time for each authority to express any concerns to the other authority and for the latter to examine such concerns and agree on the appropriate action.

1.7 When a disagreement between the two authorities cannot be resolved within the timeline established by Article 52(7) of Directive 2014/59/EU, either of the authorities may refer the issue to the EBA in order for the EBA to assist the authorities to reach an agreement in accordance with Article 31 of the EBA Regulation.

2. Coordination between resolution authorities and between competent authorities

2.1 Where the institutions or entities referred to in points (b), (c) and (d) of Article 1(1) of Directive 2014/59/EU under resolution have activities in more than one Member State or in jurisdictions outside the EU, the relevant resolution authority, before approving the business reorganisation plan, but within the appropriate timeframe for the assessment, should:

2.1.1 communicate the business reorganisation plan to the other resolution authorities affected by the reorganisation, in accordance with the provisions of Article 52(2) of Directive 2014/59/EU, even if they are in jurisdictions outside the EU, in accordance with existing cooperation arrangements or with existing assessments of confidentiality equivalence;

2.1.2 consider communicating the business reorganisation plan to that institution or entity’s resolution college or European resolution college;

2.1.3 provide the resolution authorities referred to in points 2.1.1 and 2.1.2 above with the opportunity to comment on the business reorganisation plan and take their comments into account, to the extent possible.

2.2 Where the institutions or entities referred to in points (b), (c) and (d) of Article 1(1) of Directive 2014/59/EU under resolution have activities in more than one Member State or jurisdictions outside the EU, the relevant competent authority, before communicating its approval on the business reorganisation plan to the resolution authority, but within the appropriate timeframe for the assessment, should: 2.2.1 communicate the business reorganisation plan to the other competent authorities affected by the reorganisation in accordance with the provisions of Article 52(2) of Directive 2014/59/EU, even if they are in jurisdictions outside the EU, in accordance with existing cooperation arrangements or with existing assessments of confidentiality equivalence;

2.2.2 consider communicating the business reorganisation plan to the other members of that institution’s or entity’s college of supervisors;

2.2.3 provide the competent authorities referred to in points 2.2.1 and 2.2.2 above with the opportunity to comment on the business reorganisation plan and take their comments into account, to the extent possible.

2.3 When the bail-in tool is applied to two or more group entities in different Member States, the relevant resolution authorities and competent authorities should cooperate in the assessment and approval of the business reorganisation plan.

Title IV – Date of application