Why do Articles 6 (2) and (5) of Directive 2014/59/EU (BRRD) make reference to “the group” althugh the assessment of group recovery plans is covered under Article 8?
Article 6 (2) of Directive 2014/59/EU (BRRD) states that “ […] the implementation of the arrangements proposed in the plan is reasonably likely to maintain or restore the viability and financial position of the institution or of the group, taking into account the preparatory measures that the institution has taken or has planned to take;”
Article 6 (5) of Directive 2014/59/EU (BRRD) states that: “Where the competent authority assesses that there are material deficiencies in the recovery plan, or material impediments to its implementation, it shall notify the institution or the parent undertaking of the group of its assessment and require the institution to submit, within two months, extendable with the authorities' approval by one month, a revised plan demonstrating how those deficiencies or impediments are addressed.”
What is the purpose of making a reference to “the group” in this article, since the assessment of group recovery plans are covered under article 8?
Article 8 BRRD on the assessment of group recovery plans is very much focused on the procedural aspects leading to a joint decision. However, Article 8(1) BRRD also requires the consolidating supervisor to comply with the procedure(s) established in Article 6 BRRD.
In that vein, Article 8(1) BRRD requires the consolidating supervisor to assess the extent to which group recovery plans satisfy the criteria laid down in Article 6 BRRD, which would also capture paragraph 2 of that article.
As concerns Article 6(5) BRRD, reference to the parent of a group is relevant as it clarifies the need to notify groups in case deficiencies are identified.
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