Recovery

The Law of 18 December 2015 on the failure of credit institutions and certain investment firms (“2015 Law”), which, notably, transposes Directive 2014/59/EU of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms (Bank Recovery and Resolution Recovery Directive, “BRRD”), provides that credit institutions that are not part of a group, are required to draw up their own individual recovery plans. In the case of groups, the EU parent credit institution, the EU parent investment firm, the EU parent financial holding company or the EU parent mixed financial holding company is responsible for the drawing up of a group recovery plan.

Recovery plans or group recovery plans of credit institutions and groups directly supervised by the European Central Bank (“ECB”) fall within the ECB’s competence. The plans of credit institutions and groups that are not directly supervised by the ECB are required to be submitted to and assessed by the CSSF.

(Group) Recovery plans are to be submitted either annually or every two years.

With regard to proportionality, the content of several parts of a recovery plan has been simplified for credit institutions that fall under the simplified obligations scheme.