S.L. 330.9 Art. 8Assessment of group recovery plans. S.L. 371.15 Cap. 371. Cap. 370.

(1) The Authority shall:

(a) where it is the consolidating supervisor, together with the European regulatory authorities of subsidiaries; or

(b) where it is responsible for a subsidiary, together with the European regulatory authority acting as the consolidating supervisor and the European regulatory authorities of other subsidiaries, if any, after consulting the authorities referred to in regulation 7 of the Supervisory Consolidation Regulations and with the European regulatory authorities of significant branches insofar as is relevant to the significant branch, review the group recovery plan and assess the extent to which it satisfies the requirements and criteria laid down in regulations 6 and 7. That assessment shall be made in accordance with the procedure established in regulation 6 and with this regulation and shall take into account the potential impact of the recovery measures on financial stability in Malta and in all the Member States where the group operates.

(2) The Authority shall endeavour to reach a joint decision:

(a) where it is the consolidating supervisor, together with the European regulatory authorities of subsidiaries; or

(b) where it is responsible for a subsidiary, together with the European regulatory authority acting as the consolidating supervisor and the European regulatory authorities of other subsidiaries, if any, on:

(i) the review and assessment of the group recovery plan;

(ii) whether a recovery plan on an individual basis shall be drawn up for institutions that are part of the group; and

(iii) the application of the measures referred to in regulation 6(5) and (6): Provided that the parties shall reach a joint decision within four months from the date of the transmission by the consolidating supervisor of the group recovery plan in accordance with regulation 7(3):

Provided further that the Authority may also request the EBA to assist the authorities mentioned in this sub-regulation in reaching a joint decision in accordance with Article 31(c) of Regulation (EU) No 1093/2010.

(3) Where the Authority is the consolidating supervisor, in the absence of a joint decision between the authorities mentioned in sub-regulation (2) within four months of the date of transmission, on the review and assessment of the group recovery plan or on any measures the Union parent undertaking is required to take in accordance with regulation 6(5) and (6), the Authority shall make its own decision with regard to those matters. The Authority, where it is the consolidating supervisor, shall make its decision having taken into account the views and reservations of the relevant European regulatory authorities expressed during the four-month period. The Authority, where it is the consolidating supervisor shall notify the decision to the Union parent undertaking and to the other relevant European regulatory authorities: Provided that, if at the end of the four-month period, any of the authorities referred to in sub-regulation (2) have referred a matter mentioned in sub-regulation (7) to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the Authority, where it is the consolidating supervisor, shall defer its decision and await any decision that the EBA may take in accordance with Article 19(3) of that Regulation, and shall take its decision in accordance with the decision of the EBA. The four-month period shall be deemed to be the conciliation period within the meaning of Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end of the four-month period or after a joint decision has been reached. In the absence of a decision by the EBA within one month, the decision of the Authority as the consolidating supervisor shall apply.

(4) Where the Authority is responsible for the supervision of a subsidiary, in the absence of a joint decision between the authorities mentioned in sub-regulation (2) within four months of the date of transmission on:

(a) whether a recovery plan on an individual basis is to be drawn up for the institutions under its jurisdiction; or

(b) the application at subsidiary level of the measures referred to in regulation 6(5) and (6), the Authority shall make its own decision on that matter:

Provided that, if at the end of the four-month period, any of the European regulatory authorities concerned have referred a matter mentioned in sub-regulation (7) to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the Authority, where it is responsible for the supervision of the subsidiary, shall defer its decision and await any decision that the EBA may take in accordance with Article 19(3) of that Regulation, and shall take its decision in accordance with the decision of the EBA. The four-month period shall be deemed to be the conciliation period within the meaning of Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end of the four-month period or after a joint decision has been reached. In the absence of a decision made by the EBA within one month, the decision of the Authority, where it is responsible for the supervision of the subsidiary at an individual level, shall apply.

(5) Where the Authority does not disagree with a decision taken by a relevant European regulatory authority responsible for a subsidiary in accordance with Article 8(4) of the BRRD, the Authority and the other European regulatory authorities which did not disagree with such a decision, may reach a joint decision on a group recovery plan covering entities licensed in terms of the Banking Act and the Investment Services Act, as well as those entities authorised by the European regulatory authorities mentioned in this sub-regulation.

(6) The joint decision referred to in sub-regulations (2) or (5) and any decision taken by the European regulatory authorities in the absence of a joint decision in accordance with Article 8(3) and

(4) of the BRRD shall be recognised as conclusive and shall be applied by the Authority in Malta.

(7) The Authority may, within four months of the date of transmission, request the EBA to assist the authorities mentioned in sub-regulation (2) in reaching an agreement in accordance with Article 19(3) of Regulation (EU) No 1093/2010, only in relation to the assessment of recovery plans and implementation of the measures of paragraphs (c)(i), (ii) and (iv) of regulation 6(6). The four-month period shall be deemed to be the conciliation period within the meaning of Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end of the four-month period or after a joint decision has been reached. In the absence of an EBA decision within one month, the decisions of the European regulatory authority acting as the consolidating supervisor taken in accordance with Article 8(3) of the BRRD and, or, of the European regulatory authorities responsible for subsidiaries taken in accordance with Article 8(4) of the BRRD shall apply.