S.L. 330.9 Art. 27Early intervention measures. S.L. 371.16 S.L. 370.15

(1) Where an institution infringes or, due to a inter alia rapidly deteriorating financial condition, including deteriorating liquidity situation, increasing level of leverage, non-performing loans or concentration of exposures, as assessed on the basis of a set of triggers, which may include the institution’s own funds requirement plus 1.5 percentage points, is likely in the near future to infringe the requirements of the CRR, the CRD, Title II of Directive 2014/65/EU or any of Articles 3 to 7, 14 to 17, and 24, 25 and 26 of Regulation (EU) No 600/2014 of the European parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012, the Authority shall have at its disposal, without prejudice to the measures referred to in regulation 9 of the Banking Act

(Supervisory Review) Regulations and regulation 16 of the Investment Services Act (Supervisory Review) Regulations where applicable, at least the following measures:

(a) require the board of directors of the institution to implement one or more of the arrangements or measures set out in the recovery plan or in accordance with regulation 5(2) to update such a recovery plan when the circumstances that led to the early intervention are different from the assumptions set out in the initial recovery plan and implement one or more of the arrangements or measures set out in the updated plan within a specific timeframe and in order to ensure that the conditions referred to in the introductory phrase no longer apply;

(b) require the board of directors of the institution to examine the situation, identify measures to overcome any problems identified and draw up an action programme to overcome those problems and a timetable for its implementation;

(c) require the board of directors of the institution to convene, or if the board of directors fails to comply with that requirement convene directly, a meeting of shareholders of the institution, and in both cases set the agenda and require certain decisions to be considered for adoption by the shareholders;

(d) require one or more directors or members of the senior management to be removed or replaced if those persons are found unfit to perform their duties pursuant to Article 13 of the CRD or Article 9 of Directive 2014/65/EU;

(e) require the board of directors of the institution to draw up a plan for negotiation on restructuring of debt with some or all of its creditors according to the recovery plan, where applicable;

(f) require changes to the institution's business strategy;

(g) require changes to the legal or operational structures of the institution; and

(h) acquire, including through on-site inspections and provide to the Resolution Committee, all the information necessary in order to update the resolution plan and prepare for the possible resolution of the institution and for valuation of the assets and liabilities of the institution in accordance with regulation 36.

(2) The Authority shall notify the Resolution Committee without delay upon determining that the conditions laid down in sub-regulation (1) have been met in relation to an institution. The Resolution Committee shall have the power to require the institution to contact potential purchasers in order to prepare for the resolution of the institution, subject to the conditions laid down in regulation 39(2) and the confidentiality provisions laid down in regulation 84.

(3) For each of the measures referred to in sub-regulation (1), the Authority shall set an appropriate deadline for completion, so as to enable the Authority to evaluate the effectiveness of the measure.