IFPRU 11 Annex 1 Recovery plans for significant IFPRU firms and group recovery plans for groups that include significant IFPRU firms

R

(1)

A summary of the key elements of the plan.

(2)

A summary of the overall recovery capacity or the capability of the group to restore its financial position following a significant deterioration.

(3)

A summary of the material changes to the firm or group since the most recently filed plan.

(4)

A communication and disclosure plan outlining how the firm or group intends to manage any potentially negative market reactions.

(5)

A range of capital and liquidity actions required to maintain or restore the viability and financial position of the firm or group.

(6)

An estimation of the timeframe for executing each material aspect of the plan.

(7)

A detailed description of any material impediment to the effective and timely execution of the plan, including consideration of impact on the rest of the group, customers and counterparties.

(8)

An identification of critical functions.

(9)

A detailed description of the processes for determining the value and marketability of the core business lines, operations and assets of the firm or group.

(10)

A detailed description of how recovery planning is integrated into the corporate governance structure of the firm or group.

(11)

The policies and procedures governing the approval of the plan.

(12)

An identification of the persons in the organisation responsible for preparing and implementing the plan.

(13)

The arrangements and measures to conserve or restore the own funds of the firm on an individual basis and, where applicable, on a consolidated basis.

(14)

The arrangements and measures to ensure that the firm or group has adequate access to contingency funding sources, including potential liquidity sources.

(15)

Where applicable, arrangements for intra-group financial support using an RRD group financial support agreement.

(16)

An assessment of available collateral.

(17)

An assessment of the possibility to transfer liquidity across group members and business lines, to ensure that the firm or group can carry on its operations and meet its obligations as they fall due.

(18)

Arrangements and measures to reduce risk and leverage.

(19)

Arrangements and measures to restructure liabilities.

(20)

Arrangements and measures to restructure business lines.

(21)

Arrangements and measures necessary to maintain continuous access to financial markets infrastructures.

(22)

Arrangements and measures necessary to maintain the continuous functioning of the operational processes of the firm or group, including infrastructure and IT services.

(23)

Preparatory arrangements to facilitate the sale of assets or business lines in a timeframe appropriate for the restoration of financial soundness.

(24)

Other management actions or strategies to restore financial soundness and the anticipated financial effect of those actions or strategies.

(25)

Preparatory measures that the firm or group has taken, or plans to take, to facilitate the implementation of the plan, including those necessary to enable the timely recapitalisation of the firm or group.

(26)

A framework of indicators which identifies when the appropriate actions in the plan may be taken.

(27)

A wide range of recovery options.

(28)

Appropriate conditions and procedures to ensure the timely implementation of recovery actions.

(29)

The possible measures which could be taken by the firm or group if a firm or any RRD institution in a group has infringed an RRD early intervention condition or is likely to infringe one of those conditions in the near future.

(30)

A contemplation of a range of scenarios of severe macroeconomic and financial stress relevant to the specific conditions of the firm or group, including system-wide events and stress specific to individual legal persons and to groups.

(31)

For each of the scenarios in (30), a group recovery plan must identify whether there are:

(a)

obstacles to implementing recovery measures within the group, including at the level of individual members covered by the plan; and

(b)

substantial practical or legal impediments to the prompt transfer of own funds or the repayment of liabilities or assets within the group.

[Note: articles 5(4), 5(5), 5(6), 7(5), 7(6) and Annex A of RRD]