S.L. 330.9 Art. 2Interpretation.

(1) In these regulations, unless the context otherwise requires:

"the Act" means the Malta Financial Services Authority Act;

"Additional Tier 1 instruments" means capital instruments that meet the conditions laid down in Article 52(1) of the CRR;

"affected creditor" means a creditor whose claim relates to a liability that is reduced or converted to shares or other instruments of ownership by the exercise of the write-down or conversion power pursuant to the use of the bail-in tool; "aggregate amount" means the aggregate amount by which the Resolution Committee has assessed that bail-inable liabilities are to be written down or converted, in accordance with regulation 46(1); "appropriate authority" means the Authority or the Resolution Committee, as the case may be; "asset management vehicle" means a legal person that meets the requirements laid down in regulation 42(2); "asset separation tool" means the mechanism for effecting a transfer by a Resolution Committee of assets, rights or liabilities of an institution under resolution to an asset management vehicle in accordance with regulation 42;

"the Authority" means the Malta Financial Services Authority established under the Act;

"automatic acceleration" means a situation in which a covered bond automatically becomes immediately due and payable upon the insolvency or resolution of the issuer and in respect of which the covered bond investors have an enforceable claim for repayment at a time earlier than the original maturity date;

"back-to-back transaction" means a transaction entered into between two group entities for the purpose of transferring, in whole or in part, the risk generated by another transaction entered into between one of those group entities and a third party; "bail-inable liabilities" means the liabilities and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments of an institution or entity referred to in paragraphs (b),

(c) and (d) of the definition "entity", that are not excluded from the scope of the bail-in tool by virtue of regulation 44(2); "bail-in tool" means the mechanism for effecting the exercise by the Resolution Committee of the write-down and conversion powers in relation to liabilities of an institution under resolution in accordance with regulation 43; "branch" has the same meaning as that assigned to it in point (17) of Article 4(1) of the CRR; "bridge institution" means a legal person that meets the requirements laid down in regulation 40(2); "bridge institution tool" means the mechanism for transferring shares or other instruments of ownership issued by an institution under resolution or assets, rights or liabilities of an institution under resolution to a bridge institution, in accordance with regulation 40; "the BRRD" means Directive 2014/59/EU of the European Parliament and of the Council of 15th May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, as amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may be issued thereunder;

"business day" means a day other than a Saturday, a Sunday or a public holiday in Malta;

"the CBD" means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder: Provided that, for the purposes of prudential supervision and resolution of investment firms:

(i) references to the CRD throughout these regulations shall be construed as referring to the IFD; and

(ii) references to specific provisions of the CRD throughout these regulations shall be construed as referring to the corresponding provisions of the IFD; "Central Bank" means the Central Bank of Malta as defined by the Central Bank of Malta Act;

"central counterparty" has the same meaning as that assigned to it in point (1) of Article 2 of Regulation (EU) No 648/2012;

"combined buffer requirement" shall have the same meaning as that assigned to it in point (6) of Article 128 of the CRD;

"Common Equity Tier 1 capital" means Common Equity Tier 1 capital as calculated in accordance with Article 50 of the CRR;

"Common Equity Tier 1 instruments" means capital instruments that meet the conditions laid down in Article 28(1) to (4), Article 29(1) to (5) or Article 31(1) of the CRR; "company" means a limited liability company constituted in * Malta in accordance with the Commercial Partnerships Ordinance or the Companies Act, or any law which may from time to time be in force, or a company registered, licensed or holding an equivalent authorisation in another country outside Malta under the laws of any country provided that such company, if not constituted in Malta, would qualify to be so registered or licensed under the laws of Malta; "conditions for resolution" means the conditions referred to in regulation 32(1); "consolidated basis" means the basis of the consolidated situation as defined in point (47) of Article 4(1) of the CRR; "consolidating supervisor" means consolidating supervisor as defined in point (41) of Article 4(1) of the CRR; "conversion rate" means the factor that determines the number of shares or other instruments of ownership into which a liability of a specific class will be converted, by reference either to a single instrument of the class in question or to a specified unit of value of

*Repealed by Act XXV of 1995 (Chapter 386). a debt claim;

"core business lines" means business lines and associated services which represent material sources of revenue, profit or franchise value for an institution or for a group of which an institution forms part; "covered bond" means a covered bond as defined in point (1) of Article 3 of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/ 65/EC and 2014/59/EU or, with regard to an instrument that is issued before 8 July 2022, a bond as referred to in Article 52(4) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as applicable on the date of its issue; "covered deposits" means covered deposits as defined in point

(5) of Article 2(1) of Directive 2014/49/EU; "the CRD" means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder:

Provided that, for the purposes of prudential supervision and resolution of investment firms:

(i) references to the CRD throughout these regulations shall be construed as referring to the IFD; and

(ii) references to specific provisions of the CRD throughout these regulations shall be construed as referring to the corresponding provisions of the IFD;; "credit institution" shall have the same meaning as that assigned to it in point (1) of Article 4(1) of the CRR, with the exception of those entities referred to in Article 2(5) of the CRD;

"crisis management measure" means a resolution action or the appointment of a special manager under regulation 35 or a person under regulation 51(2) or under regulation 72(1); "crisis prevention measure" means the exercise of powers to direct removal of deficiencies or impediments to recoverability under regulation 6(6), the exercise of powers to address or remove impediments to resolvability under regulations 17 or 18, the application of an early intervention measure under regulation 27, the appointment of a temporary administrator under regulation 29 or the exercise of the write-down or conversion powers under regulation 59; "critical functions" means activities, services or operations the discontinuance of which is likely, in one or more Member States, to lead to the disruption of services that are essential to the real economy or to disrupt financial stability due to the size, market share, external and internal interconnectedness, complexity or cross-border activities of the institution or group, with particular regard to the substitutability of those activities, services or operations;

"cross-border group" means a group having group entities established in more than one Member State;

"the CRR" means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder;

"debt instruments" referred to in paragraphs (g) and (j) of regulation 63(1) means bonds and other forms of transferable debt, instruments creating or acknowledging a debt, and instruments giving rights to acquire debt instruments; "deposit" means a sum of money paid-in on terms under which it will be repaid, with or without interest or a premium and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it; "deposit guarantee scheme" means a deposit guarantee scheme introduced and officially recognised by a Member State pursuant to Article 4 of Directive 2014/49/EU; "depositor" has the same meaning as that assigned to it in point

(6) of Article 2(1) of Directive 2014/49/EU; "derivative" has the same meaning as that assigned to it in point

(5) of Article 2 of Regulation (EU) No 648/2012; "Directive 2002/47/EC" means Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 2014/49/EU" means Directive 2014/49/EU of the European Parliament and of the Council, of 16 April 2014, on deposit guarantee schemes, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 2014/65/EU" means Directive 2014/65/EU of the European Parliament and of the Council, of 15 May 2014, on markets in financial instruments and amending Directive 2002/92/ EC and Directive 2011/61/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder;

"Directive 97/9/EC" means Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on investor-compensation schemes, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder;

"Directive 98/26/EC" means Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "director" includes an individual occupying the position of director of a company, by whatever name he may be called, empowered to carry out substantially the same functions in relation to the direction of the company as those carried out by a director and in respect of a company registered, licensed or holding an equivalent authorisation outside Malta includes a member of a local board or agent or representative of that company; "EBA" means the European Banking Authority established by Regulation (EU) No 1093/2010; "EEA State" means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May, 1992 as amended by the Protocol signed at Brussels on the 17th March, 1993 and as amended by any subsequent acts;

"eligible deposits" has the same meaning as that assigned to it in point (4) of Article 2(1) of Directive 2014/49/EU;

"eligible liabilities" means bail-inable liabilities that fulfil, as applicable, the conditions of regulation 45B or paragraph (a) of regulation 45F(2) and Tier 2 instruments that meet the conditions of point (b) of Article 72a(1) of the CRR; "emergency liquidity assistance" means the provision by a central bank of central bank money, or any other assistance that may lead to an increase in central bank money, to a solvent financial institution, or group of solvent financial institutions, that is facing temporary liquidity problems, without such operation being part of monetary policy;

"entity" means:

(a) institutions that are established in the European Union;

(b) financial institutions that are established in the Union when the financial institution is a subsidiary of a credit institution or investment firm, or of a company referred to in paragraph (c) or (d), and is covered by the supervision of the parent undertaking on a consolidated basis in accordance with Articles 6 to 17 of the CRR;

(c) financial holding companies, mixed financial holding companies and mixed-activity holding companies that are established in the Union;

(d) parent financial holding companies in a Member State, Union parent financial holding companies, parent mixed financial holding companies in a Member State, Union parent mixed financial holding companies;

(e) branches of institutions that are established outside the European Union in accordance with the specific conditions laid down in this regulation; "ESRB" means the European Systemic Risk Board established by Regulation (EU) No 1092/2010; "European Central Bank" means the European Central Bank established in accordance with Article 13 of the Treaty on European Union; "European regulatory authority" means an authority which is situated in a country or territory outside Malta that is in a Member State and is empowered by law or regulation to supervise investment firms or credit institutions; "European resolution authority" means an authority which is situated in a country or territory outside Malta that is in a Member State and which exercises any function corresponding to the functions of the Resolution Committee under these regulations;

"extraordinary public financial support" means State Aid within the meaning of Article 107(1) of the Treaty on the Functioning of the European Union, or any other public financial support at supra-national level, which, if provided at national level, would constitute State aid, that is provided in order to preserve or restore the viability, liquidity or solvency of an institution or of an entity or of a group of which such an institution or entity forms part; "financial contracts" includes the following contracts and agreements:

(a) securities contracts, including:

(i) contracts for the purchase, sale or loan of a security, a group or index of securities;

(ii) options on a security or group or index of securities;

(iii) repurchase or reverse repurchase transactions on any such security, group or index;

(b) commodities contracts, including:

(i) contracts for the purchase, sale or loan of a commodity or group or index of commodities for future delivery;

(ii) options on a commodity or group or index of commodities;

(iii) repurchase or reverse repurchase transactions on any such commodity, group or index;

(c) futures and forwards contracts, including contracts (other than a commodities contract) for the purchase, sale or transfer of a commodity or property of any other description, service, right or interest for a specified price at a future date;

(d) swap agreements, including:

(i) swaps and options relating to interest rates; spot or other foreign exchange agreements; currency; an equity index or equity; a debt index or debt; commodity indexes or commodities; weather; emissions or inflation;

(ii) total return, credit spread or credit swaps;

(iii) any agreements or transactions that are similar to an agreement referred to in paragraph (i) or

(ii) which is the subject of recurrent dealing in the swaps or derivatives markets;

(e) inter-bank borrowing agreements where the term of the borrowing is three months or less;

(f) master agreements for any of the contracts or agreements referred to in paragraphs (a) to (e); "financial holding company" means a financial holding company as defined in point (20) of Article 4(1) of the CRR; "financial institution" means a financial institution as defined in point (26) of Article 4(1) of the CRR; "financial instrument" shall have the same meaning as that assigned to it in point (50) of Article 4(1) of the CRR; "global systemically important institution" or "G-SII" has the same meaning as that assigned to it in point (133) of Article 4(1) of the CRR; "group" means a parent undertaking and its subsidiaries; "group entity" means a legal entity that is part of a group;

"group financing arrangement" means the financing arrangement or arrangements of the Member State of the group-level resolution authority; "group-level resolution authority" means the Resolution Committee when Malta is the consolidating supervisor or the resolution authority in the Member State in which the consolidating supervisor is situated;

"group recovery plan" means a group recovery plan drawn up and maintained in accordance with regulation 7;

"group resolution" means either of the following:

(a) the taking of resolution action at the level of a parent undertaking or of an institution subject to consolidated supervision, or

(b) the coordination of the application of resolution tools and the exercise of resolution powers by the Resolution Committee and the European resolution authorities concerned in relation to group entities that meet the conditions for resolution; "group resolution plan" means a plan for group resolution drawn up in accordance with regulations 12 and 13; "group resolution scheme" means a plan drawn up for the purposes of group resolution in accordance with regulation 91; "hybrid capital" means a form of debt that has been substituted for equity; "the IFD" means Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "the IFR" means Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/ 2014 and (EU) No 806/2014, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; and "impaired asset" means an asset that is worth less on the market than the value listed on an institutions balance sheet and which will result in a write-down of that same asset account to the stated market price;

"institution" means a credit institution or an investment firm; "institution under resolution" means an institution, a financial institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in respect of which a resolution action is taken; "institutional protection scheme" or "IPS" means an arrangement that meets the requirements laid down in Article 113(7) of the CRR; "instruments of ownership" means shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments of ownership, and instruments representing interests in shares or other instruments of ownership; "insurance undertaking" shall have the same meaning as that assigned to it in point (5) of Article 4(1) of the CRR; "intra-group guarantee" means a contract by which one group entity guarantees the obligations of another group entity to a third party;

"investment firm" means an investment firm as defined in point

(22) of article 4(1) of the IFR, which is subject to the initial capital requirement of €750,000, and excluding firms which are not authorised to provide any of the investment services or to perform any of the investment activities listed in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU; "investor" means an investor within the meaning of point (4) of Article 1 of Directive 97/9/EC of the European Parliament and of the Council; "liquidation entity" means a legal person established in the Union in respect of which the group resolution plan or, for entities that are not part of a group, the resolution plan, provides that the entity is to be wound up under normal insolvency proceedings, or an entity, within a resolution group other than a resolution entity, in respect of which the group resolution plan does not provide for the exercise of write-down and conversion powers; "material subsidiary" has the same meaning as that assigned to it in point (135) of Article 4(1) of the CRR; "Member State" means a Member State of the European Union and includes an EEA State; "micro, small and medium-sized enterprises" means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC;

"mixed-activity holding company" means a mixed-activity holding company as defined in point (22) of Article 4(1) of the CRR; "mixed financial holding company" means a mixed financial holding company as defined in point (21) of Article 4(1) of the CRR; "netting arrangement" means an arrangement under which a number of claims or obligations can be converted into a single net claim, including close-out netting arrangements under which, on the occurrence of an enforcement event (however or wherever defined) the obligations of the parties are accelerated so as to become immediately due or are terminated, and in either case are converted into or replaced by a single net claim, including ‘close-out netting provisions’ as defined in point (n)(i) of Article 2(1) of Directive 2002/47/EC and ‘netting’ as defined in point (k) of Article 2 of Directive 98/26/EC; "normal insolvency proceedings" means collective insolvency proceedings which entail the partial or total divestment of a debtor and the appointment of a liquidator or an administrator normally applicable to institutions under Maltese law and either specific to those institutions or generally applicable to any natural or legal person; "overseas appropriate authority" means an authority of a Member State identified in accordance with Article 61 of the BRRD that is responsible under the national law of that State for making the determinations referred to in regulation 59(3); "own funds" means own funds as defined in point (118) of Article 4(1) of the CRR; "own funds requirements" means the requirements laid down in regulations 92 to 98 of the CRR; "parent financial holding company in a Member State" means a parent financial holding company in a Member State as defined in point (30) of Article 4(1) the CRR; "parent institution in a Member State" means a parent institution in a Member State as defined in point (28) of Article 4(1) of the CRR;

"parent mixed financial holding company in a Member State" means a parent mixed financial holding company in a Member State as defined in point (32) of Article 4(1) of the CRR;

"parent undertaking" means a parent undertaking as defined in point (15)(a) of Article 4(1) of the CRR;

"recipient" means the entity to which shares, other instruments of ownership, debt instruments, assets, rights or liabilities, or any combination of those items are transferred from an institution under resolution; "recovery capacity" means the capability of an institution to restore its financial position following a significant deterioration; "recovery plan" means a recovery plan drawn up and maintained by an institution in accordance with regulation 5; "regulated market" has the same meaning as that assigned to it in point (21) of Article 4(1) of Directive 2014/65/EU; "Regulation (EU) No 1093/2010" means Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/ EC and repealing Commission Decision 2009/78/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Regulation (EU) No 648/2012" means Regulation (EU) No 648/ 2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "relevant capital instruments" for the purposes of Section 5 of Chapter IV of Title IV and Chapter V of Title IV of the BRRD, means Additional Tier 1 instruments and Tier 2 instruments; "relevant parent institution" means a parent institution in a Member State, a Union parent institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in relation to which the bail-in tool is applied; "relevant third-country authority" means an authority established in a third-country which is responsible for carrying out functions comparable to those of the Resolution Committee or the Authority pursuant to these regulations; "resolution" means the application of a resolution tool or a tool referred to in regulation 37(9) in order to achieve one or more of the resolution objectives referred to in regulation 31(2); "resolution action" means the decision to place an institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in this sub-regulation under resolution pursuant to regulations 32 or 33, the application of a resolution tool, or the exercise of one or more resolution powers; "resolution college" means a college established in accordance with regulation 88 to carry out the tasks referred to in regulation 88(1); "Resolution Committee" means the committee responsible for resolution, as established in the Act; "resolution entity" means either of the following:

(a) a legal person established in the European Union, that in accordance with regulation 12, is identified by the Resolution Committee as an entity in respect of which the resolution plan provides for resolution action; or

(b) an institution that is not part of a group that is subject to consolidated supervision pursuant to Articles 111 and 112 of the CRD, in respect of which the resolution plan drawn up pursuant to regulation 10 provides for resolution action; "resolution group" means:

(a) a resolution entity and its subsidiaries that are not:

(i) resolution entities themselves;

(ii) subsidiaries of other resolution entities; or

(iii) entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries; or

(b) credit institutions permanently affiliated to a central body and the central body itself when at least one of those credit institutions or the central body is a resolution entity, and their respective subsidiaries; "resolution objectives" means the resolution objectives referred to in regulation 31(2); "resolution plan" means a resolution plan for an institution drawn up in accordance with regulation 10; "resolution power" means a power referred to in regulations 63 to 72; "resolution tool" means a resolution tool referred to in regulation 37(3); "sale of business tool" means the mechanism for effecting a transfer by the Resolution Committee of shares or other instruments of ownership issued by an institution under resolution, or assets, rights or liabilities, of an institution under resolution to a purchaser that is not a bridge institution, in accordance with regulation 38; "secured liability" means a liability where the right of the creditor to payment or other form of performance is secured by a charge, pledge or lien, or collateral arrangements including liabilities arising from repurchase transactions and other title transfer collateral arrangements; "senior management" means senior management as defined in point (9) of Article 3(1) of the CRD; "set-off arrangement" means an arrangement under which two or more claims or obligations owed between the institution under resolution and a counterparty can be set off against each other; "significant branch" means a branch that would be considered as significant in a host Member State in accordance with Article 51(1) of the CRD;

"subordinated eligible instruments" means instruments that meet all the conditions referred to in Article 72a of the CRR with the exception of paragraphs (3) to (5) of Article 72b of the said Regulation; "subsidiary" shall have the same meaning as that assigned to it in point (16) of Article 4(1) of the CRR, and for the purposes of applying regulations 7, 12, 17, 18, 45 to 45L, 59 to 62, 91 and 92 to resolution groups, includes, where and as appropriate, credit institutions that are permanently affiliated to a central body, by the central body itself, and their respective subsidiaries, taking into account the way in which the resolution groups mentioned above comply with regulation 45E(3);

"supervisory college" means a college of supervisors established in accordance with Article 116 of the CRD;

"systemic crisis" means a disruption in the financial system with the potential to have serious negative consequences for the internal market and the real economy. All types of financial intermediaries, markets and infrastructure may be potentially systemically important to some degree;

"termination right" means a right to terminate a contract, a right to accelerate, close out, set-off or net obligations or any similar provision that suspends, modifies or extinguishes an obligation of a party to the contract or a provision that prevents an obligation under the contract from arising that would otherwise arise;

"third country" means a country that is not a Member State or an EEA state;

"third-country institution" means an entity, the head office of which is established in a third country, that would, if it were established within the Union, be covered by the definition of an institution; "third-country parent undertaking" means a parent undertaking, a parent financial holding company or a parent mixed financial holding company, established in a third country;

"third-country regulatory authority" means an authority which is in a country or territory that is not a Member State and is responsible for carrying out functions comparable to those of the Authority pursuant to these regulations; "third-country resolution authority" means an authority which is in a country or territory that is not a Member State and is responsible for carrying out functions comparable to those of the Resolution Committee pursuant to these regulations; "third-country resolution proceedings" means an action under the law of a third country to manage the failure of a third-country institution or a third-country parent undertaking that is comparable, in terms of objectives and anticipated results, to resolution actions under these regulations;

"Tier 2 instruments" means capital instruments or subordinated loans that meet the conditions laid down in Article 63 of the CRR;

"title transfer financial collateral arrangement" means a title transfer financial collateral arrangement as defined in point (b) of Article 2(1) of Directive 2002/47/EC; "transfer powers" means the powers specified in paragraphs (c) or (d) of regulation 63(1) to transfer shares, other instruments of ownership, debt instruments, assets, rights or liabilities, or any combination of those items from an institution under resolution to a recipient; "Union branch" means a branch located in a Member State of a third-country institution; "Union parent financial holding company" means an EU parent financial holding company as defined in point (31) of Article 4(1) of the CRR; "Union parent institution" means an EU parent institution as defined in point (29) of Article 4(1) of the CRR; "Union parent mixed financial holding company" means an EU parent mixed financial holding company as defined in point (33) of Article 4(1) of the CRR;

"Union parent undertaking" means a Union parent institution, a Union parent financial holding company or a Union parent mixed financial holding company; "Union State aid framework" means the framework established by Articles 107, 108 and 109 of the Treaty on the Functioning of the European Union and regulations and all Union acts, including guidelines, communications and notices, made or adopted pursuant to Article 108(4) or Article 109 of the Treaty on the Functioning of the European Union; "Union subsidiary" means an institution which is established in a Member State and which is a subsidiary of a third-country institution or a third-country parent undertaking;

"winding up" means the realisation of assets of an institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in this sub-regulation; "write-down and conversion powers" means the powers referred to in regulation 59(2) and in paragraphs (e) to (i) of regulation 63(1).

(2) Words and expressions used in these regulations which are also used in the Act but which are not defined herein, shall have the same meaning assigned to them as in the Act.

(3) These regulations shall apply to:

(a) institutions that are established in the European Union;

(b) financial institutions that are established in the Union when the financial institution is a subsidiary of a credit institution or investment firm, or of a company referred to in paragraphs (c) and (d), and is covered by the supervision of the parent undertaking on a consolidated basis in accordance with Articles 6 to 17 of the CRR;

(c) financial holding companies, mixed financial holding companies and mixed-activity holding companies that are established in the European Union;

(d) parent financial holding companies in a Member State, Union parent financial holding companies, parent mixed financial holding companies in a Member State, Union parent mixed financial holding companies;

(e) branches of institutions that are established outside the Union in accordance with the specific conditions laid down in these regulations.