European Union (Bank Recovery and Resolution) Regulations 2015
Source: Iris Oifigiúl 289 of 2015 2015-07-14 01329-01329

num: 1
paragraphs: (1) These Regulations may be cited as the European Union (Bank Recovery and Resolution) Regulations 2015.
(2) Subject to paragraph (3), these Regulations come into operation on 15 July 2015.
(3) Regulations 79 to 94 shall come into operation on 1 January 2016.
num: 2
paragraphs: (1) These Regulations shall apply to the following:
(a) institutions that are authorised in the State;
(b) financial institutions that are established in the State where the financial institution—
(i) is a subsidiary of—
(I) a credit institution or investment firm, or
(II) a company referred to in subparagraphs (c) to (i),
(ii) is covered by the supervision of the parent undertaking on a consolidated basis in accordance with Articles 6 to 17 of the Union Capital Requirements Regulation;
(c) financial holding companies that are established in the State;
(d) mixed financial holding companies that are established in the State;
(e) mixed-activity holding companies that are established in the State;
(f) parent financial holding companies that are established in the State;
(g) Union parent financial holding companies that are established in the State;
(h) parent mixed financial holding companies that are established in the State;
(i) Union parent mixed financial holding companies that are established in the State;
(j) branches, which operate in the State, of institutions that are established outside the Union in accordance with the specific conditions set out in the Bank Recovery and Resolution Directive.
(2) Subject to specific provisions of these Regulations, the resolution authority and the competent authority when exercising their functions under these Regulations in relation to an entity referred to in paragraph (1) shall take account of the nature of the entity’s business, its shareholding structure, its legal form, its risk profile, its size, its legal status, its interconnectedness to other institutions and to the financial system in general, the scope and complexity of its activities, its membership of an institutional protection scheme that meets the requirements of Article 113(7) of the Union Capital Requirements Regulation or other cooperative mutual solidarity systems as referred to in Article 113(6) of that Regulation, and whether it exercises any investment services as defined in Regulation 3(1) of the MiFID I Regulations.
num: 3
paragraphs: (1) In these Regulations—
(a) the authority designated under Regulation 4 of the Capital Requirements Regulations, or
(b) the European Central Bank with regard to specific tasks conferred on it by Council Regulation (EU) No 1024/2013;
(a) a resolution action, or
(b) the appointment of a special manager under Regulation 115(1);
(a) the exercise of powers to direct removal of deficiencies or impediments to recoverability under Regulation 13(8) and (9),
(b) the exercise of powers to address or remove impediments to resolvability under Regulation 28 or 29,
(c) the application of an early intervention measure under Regulation 39,
(d) the appointment of a temporary administrator under Chapter 3 of Part 3, or
(e) the exercise of the write-down or conversion powers under Regulation 95;
(a) the deposit protection account referred to in the Act of 2009,
(b) the deposit guarantee scheme introduced and officially recognised by the State pursuant to Article 4 of Directive 2014/49/EU, or
(c) the deposit guarantee scheme introduced and officially recognised by another Member State pursuant to Article 4 of Directive 2014/49/EU;
(a) State aid within the meaning of Article 107(1) of the TFEU, or
(b) any other public financial support at supra-national level, which, if provided for at national level, would constitute State aid,
(a) securities contracts, including the following:
(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 the following:
(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 the following:
(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 clause (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 3 months or less;
(f) master agreements for any of the contracts or agreements referred to in subparagraphs (a) to (e);
(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 resolution authorities, within the meaning of the Bank Recovery and Resolution Directive, in relation to group entities that meet the conditions for resolution;
(a) the Union resolution authority, or
(b) the resolution authority,
(a) winding up (whether official or voluntary),
(b) the appointment of a provisional liquidator,
(c) the appointment of an examiner (including the appointment of an interim examiner),
(d) the appointment of an administrator under section 2 of the Investor Compensation Act 1998 (No. 37 of 1998);
(a) Regulation 3(1) of the MiFID I Regulations, or
(b) point (14) of Article 4(1) of the MiFID I Directive,
(a) a resolution order, or
(b) a relevant authority (whether a Union resolution authority or a court in the state of a Union resolution authority concerned) in a Member State other than the State,
(i) Regulation 69, or
(ii) Article 38 of the Bank Recovery and Resolution Directive;
(2) A word or expression which is used in these Regulations and is also used in the Bank Recovery and Resolution Directive has, unless the context otherwise requires, the same meaning in these Regulations as it has in the Bank Recovery and Resolution Directive.
num: 4
paragraphs: (1) The Bank is designated as the resolution authority in the State that carries out the functions and duties of a resolution authority provided for in the Bank Recovery and Resolution Directive.
(2) The Minister shall inform the European Banking Authority in writing of the designation of the resolution authority under paragraph (1).
(3) In order to—
(a) apply the resolution actions, and
(b) exercise its functions under these Regulations,
(4) For the purposes of this Regulation, the resolution authority shall adopt and, as soon as practicable after their adoption, publish on the website of the Bank any necessary relevant internal rules (including rules regarding professional secrecy) on information exchanges between it and other functional areas of the Bank.
(5) The resolution authority, in the preparation, planning and application of resolution decisions, shall cooperate closely with staff of the competent authority.
(6) The Minister is designated as responsible for the exercise of the functions of a competent ministry referred to in Article 3(5) of the Bank Recovery and Resolution Directive.
(7) Any decision taken by the competent authority, or the resolution authority, in accordance with these Regulations shall—
(a) take into account the potential impact of the decision in all the Member States where the institution or the group concerned operates, and
(b) minimise the negative effects on financial stability and negative economic and social effects in those Member States.
num: 5
paragraphs: The Bank shall provide, pursuant to section 32D of the Act of 1942, the resolution authority with such funds as the Governor considers necessary to enable that authority to perform and exercise its functions.
num: 6
paragraphs: In these Regulations, the functions and duties of the Bank as resolution authority and as competent authority in the State shall be carried out in accordance with Regulation 7 and references to the functions and duties of the resolution authority and competent authority designated in the State shall be construed accordingly.
num: 7
paragraphs: (1) The Bank shall ensure that adequate structural arrangements for the purposes of paragraph (4) are in place such that the staff involved in carrying out the functions as a resolution authority for the purposes of the Bank Recovery and Resolution Directive shall be structurally separate from and subject to separate reporting lines from the staff involved in carrying out the supervision tasks of the competent authority or other functions of the Bank.
(2) The Governor shall be responsible for exercising the functions of the resolution authority under these Regulations.
(3) Without limitation to the generality of paragraph (2), the Governor may delegate any of the functions referred to in that paragraph to a Head of Function (within the meaning given by section 2 of the Act of 1942) or an officer or employee of the Bank.
(4) The Bank shall ensure adequate structural arrangements are in place to ensure operational independence and to avoid conflicts of interest between the Bank’s—
(a) functions as a resolution authority for the purposes of the Bank Recovery and Resolution Directive, and
(b) other functions (including, in particular, its supervision functions pursuant to the Union Capital Requirements Regulation and the Capital Requirements Regulations).
(5) Nothing in paragraph (4) shall limit—
(a) the exchange of information necessary for the performance of functions under the Bank Recovery and Resolution Directive and these Regulations, or
(b) the performance of functions in relation to the preparation, planning and application of resolution decisions.
(6) Nothing in these Regulations prevents the performance by the Governor or the Bank of their functions arising under the treaties governing the European Union (within the meaning given by section 1 (as amended by section 2 of the European Union Act 2009 (No. 33 of 2009)) of the European Communities Act 1972 (No. 27 of 1972)) or the ESCB Statute (within the meaning given by section 2 of the Act of 1942).
num: 8
paragraphs: The Bank is designated as the national macroprudential authority in the State entrusted with the conduct of macroprudential policy referred to in Recommendation B1 of the Recommendation of the European Systemic Risk Board of 22 December 2011 on the macroprudential mandate of national authorities (ESRB/2011/3).
num: 9
paragraphs: (1) The resolution authority shall inform the Minister of the following decisions taken under these Regulations:
(a) a decision to make a proposed resolution order pursuant to Regulation 62 or 63;
(b) a decision to draw up a valuation under Regulation 65 or 66;
(c) a decision to exercise the write-down or conversion powers under Regulation 95 independently of resolution;
(d) a decision to notify the group-level resolution authority, the consolidating supervisor and the members of the resolution college for a group pursuant to Regulation 155(1);
(e) a decision to notify the competent authority and the other members of the resolution college for a group pursuant to Regulation 156(1);
(f) a joint decision under Regulation 158(3) within a European resolution college to recognise third-country resolution proceedings;
(g) a decision under Regulation 158(5) to recognise third-country resolution proceedings;
(h) a decision to refuse to recognise or enforce third-country proceedings under Regulation 159 after consulting the other members of the European resolution college;
(i) a decision to resolve a Union branch under Regulation 160.
(2) The resolution authority shall obtain the Minister’s prior written consent before making a proposed resolution order pursuant to Regulation 104, where the resolution authority forms the view that—
(a) both—
(i) the use of the Fund will be required for the effective application of the resolution tools, and
(ii) there are insufficient monies available in the Fund to meet these requirements;
(b) the decision will have a direct fiscal impact, other than the use of the Fund, or
(c) the decision is likely to have systemic implications.
(3) For the purpose of paragraph (2)(c), “systemic implication” means there is a serious risk to the stability of the financial system or the economy of the State.
num: 10
paragraphs: (1) The competent authority may apply simplified recovery planning obligations to an institution following an assessment pursuant to paragraph (2).
(2) The competent authority having had regard to—
(a) the impact that the failure of an institution could have, due to the nature of its business,
(b) whether failure and subsequent winding up of an institution under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other institutions, on funding conditions or on the wider economy, and
(c) the matters mentioned in paragraph (5),
(i) the contents and details of recovery plans provided for in Regulations 11 to 16;
(ii) the date by which the first recovery plan is to be drawn up and the frequency for updating recovery plans, which may be less frequent than that provided for in Regulation 11(2);
(iii) the contents and details of the information required from the institution concerned as provided for in—
(I) Regulation 11(4) and (6), and