Simplified obligations regarding recovery and resolution plans for a subsidiary constituting a significant share in the financial system of a Member State

Article 4(10) of Directive 2014/59/EU (BRRD) should be interpreted in the context of Article 4 relating to simplified obligations. This Article includes also a possibility of waiving recovery or resolution planning requirement for certain institutions, namely for members of IPS or institutions affiliated to a central body (see Article 4(8) BRRD. These types of institutions should be situated within the same Member State (by virtue of Articles 10 and 113(7) of Regulation No 575/2013 CRR)). Article 4(10) of the BRRD is intended to limit the scope for waiving the recovery and resolution planning requirement, stating that if such individual institutions are under the direct supervision of ECB or constitute a significant share of that Member States' financial system, then the requirements cannot be waived. In the context of group recovery and resolution planning requirements (for non-IPS and non-networks of institutions affiliated to central body) in cross border context, provisions on joint- decision apply. This includes Articles 8 of the BRRD for group recovery planning and Article 13 of the BRRD for group resolution planning. These Articles do not require plans for individual entities of the group but there is a possibility for a host authority to require a separate plan for the entity under its jurisdiction if it does not agree with group level plans.                                                                                          In this regard, Recital 33 of the BRRD states that the relevant authorities should make every effort to reach a joint decision on the assessment and adoption of group plans.  Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.