S.L. 330.9 Art. 52Business reorganisation plan.

(1) Within one month after the application of the bail-in tool to an institution or entity referred to in paragraphs (b), (c) or

(d) of the definition "entity" in regulation 2(1) in accordance with regulation 43(2)(a), the board of directors or the person or persons appointed in accordance with regulation 72(1) shall draw up and submit to the Resolution Committee, a business reorganisation plan that satisfies the requirements of sub-regulations (4) and (5). Where the Union State aid framework is applicable, the Resolution Committee shall ensure that such a plan is compatible with the restructuring plan that the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) is required to submit to the European Commission under that framework.

(2) Where the Resolution Committee is the group-level resolution authority, and the bail-in tool in regulation 43(2)(a) is applied to two or more group entities, the business reorganisation plan shall be prepared by the Union parent institution and cover all of the institutions in the group in accordance with the procedure specified in regulations 7 and 8 and shall be submitted to the Resolution Committee. The Resolution Committee, in its capacity as the group-level resolution authority, shall communicate the plan to the European resolution authorities concerned and to the EBA.

(3) In exceptional circumstances, and if it is necessary for achieving the resolution objectives, the Resolution Committee may extend the period in sub-regulation (1) up to a maximum of two months from the application of the bail-in tool: Provided that, where the business reorganisation plan is required to be notified within the Union State aid framework, the Resolution Committee may extend the period in sub-regulation (1) up to a maximum of two months since the application of the bail-in tool or until the deadline laid down by the Union State aid framework, whichever occurs earlier.

(4) A business reorganisation plan shall set out measures aiming to restore the long-term viability of the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) or parts of its business within a reasonable time-scale. Those measures shall be based on realistic assumptions as to the economic and financial market conditions under which the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) will operate:

Provided that the business reorganisation plan shall take account, of the current state and future prospects of the inter alia, financial markets, reflecting best-case and worst-case assumptions, including a combination of events allowing the identification of the institution’s main vulnerabilities. Assumptions shall be compared with appropriate sector-wide benchmarks.

(5) A business reorganisation plan shall include at least the following elements:

(a) a detailed diagnosis of the factors and problems that caused the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) to fail or to be likely to fail, and the circumstances that led to its difficulties;

(b) a description of the measures aiming to restore the long-term viability of the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) that are to be adopted;

(c) a timetable for the implementation of those measures.

(6) Measures aiming to restore the long-term viability of an institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) may include:

(a) the reorganisation of the activities of the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1);

(b) changes to the operational systems and infrastructure within the institution;

(c) the withdrawal from loss-making activities;

(d) the restructuring of existing activities that can be made competitive;

(e) the sale of assets or of business lines.

(7) Within one month of the date of submission of the business reorganisation plan, the Resolution Committee shall assess the likelihood that the plan, if implemented, will restore the long-term viability of the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1). The assessment shall be completed in agreement with the Authority. If the Resolution Committee and the Authority are satisfied that the plan would achieve that objective, the Resolution Committee shall approve the plan.

(8) If the Resolution Committee is not satisfied that the plan would achieve the objective referred to in sub-regulation (7), the Resolution Committee, in agreement with the Authority, shall notify the board of directors or the person or persons appointed in accordance with regulation 72(1) of its concerns and require the amendment of the plan in a way that addresses those concerns.

(9) Within two weeks from the date of receipt of the notification referred to in sub-regulation (8), the board of directors or the person or persons appointed in accordance with regulation 72(1) shall submit an amended plan to the Resolution Committee for approval. The Resolution Committee shall assess the amended plan, and shall notify the board of directors or the person or persons appointed in accordance with regulation 72(1) within one week whether it is satisfied that the plan, as amended, addresses the concerns notified or whether further amendment is required.

(10) The board of directors or the person or persons appointed in accordance with regulation 72(1) shall implement the reorganisation plan as agreed by the Resolution Committee and Authority, and shall submit a report to the Resolution Committee at least every six months on progress in the implementation of the plan.

(11) The board of directors or the person or persons appointed in accordance with regulation 72(1) shall revise the plan if, in the opinion of the Resolution Committee with the agreement of the Authority, it is necessary to achieve the aim referred to in sub-regulation (4), and shall submit any such revision to the Resolution Committee for approval.