We advise you to use your e-mail as your username. This Act regulates the application of crisis prevention measures and resolution tools and powers to credit institutions and investment firms if there is a risk that their financial situation may rapidly deteriorate or if it is likely that they are insolvent kuni 6 kuuni puudub lepingutasu may become insolvent in the future.
The resolution proceedings shall be commenced in the public interest if the winding up and liquidation of a credit institution or investment firm under bankruptcy proceedings does not prevent damage to financial stability and does not avoid contagion to the financial system or real economy. The provisions of the Administrative Procedure Act apply to administrative proceedings prescribed in this Act without prejudice to the rules specific to this Act and the Financial Supervision Authority Act. For the purposes of this Act, a credit institution shall also be deemed to be an investment firm and it is subject to any and all provisions applied to credit institutions, unless otherwise provided for in this Act. For the purposes of this Act, the Financial Supervision Authority shall be a resolution authority, except for the purposes of Divisions 1 and 3 of Chapter 2 and Division 3 of Chapter 3 of this Act where the Financial Supervision Authority is deemed to be a supervisory authority. 2 of this Act pursuant to the provisions of this Act and other legislation. The Financial Supervision Authority shall be a resolution authority of a consolidation group if the parent undertaking of the consolidation group is registered in Estonia and the Financial Supervision Authority exercises financial supervision on a consolidated basis over the consolidation group.
Financial Supervision Authority shall find an optimum balance between the achievement of those objectives in a specific situation. For the purposes of this Act, a systemic crisis means a disruption in the financial system with the potential to have serious negative consequences for the internal market and the real economy and with the potential involvement of all types of financial intermediaries, markets and infrastructure. For the purposes of this Act, critical functions mean payment and settlement services provided by credit institutions and other services or operations the discontinuance or significant disruption in the continuous operation of which damages or may damage the functioning of the financial market, financial stability or the real economy or may have a negative effect on other participants in the financial system. For the purposes of this Act, an early intervention measure means a supervisory measure that the Financial Supervision Authority may apply if the financial position of a credit institution is deteriorating and due to this the credit institution infringes or may infringe legislation, administrative acts applicable to the credit institution or internal rules of the credit institution. 2013 of the European Parliament and of the Council. A credit institution shall prepare and submit to the Financial Supervision Authority a recovery plan providing for measures to be taken by the credit institution to restore its financial position following a significant deterioration thereof.
Financial Supervision Authority a recovery plan of the consolidation group headed by the parent undertaking as a whole. Estonia exceeds 20 per cent, unless the value of the assets is below 5 billion euros. If a parent undertaking has been established in the other EEA country, the Financial Supervision Authority may require a subsidiary that is a credit institution established in Estonia and that is part of a consolidation group to prepare a recovery plan. A recovery plan shall be submitted to the Financial Supervision Authority for review.
Prior to the submission of the plan to the Financial Supervision Authority, it shall be approved by the management board and confirmed by the supervisory board of the credit institution or parent undertaking. A credit institution or parent undertaking shall review the recovery plan at least annually or after any changes to the legal status or organisational structure of the credit institution or consolidation group or an event or incident related to its business or its financial situation, which could have a material effect on the plan or necessitates a change in the plan. The Financial Supervision Authority may require that the plan be updated more frequently. The Financial Supervision Authority shall establish a term for preparing the first recovery plan. The recovery plan shall not prescribe the use of extraordinary public financial support to maintain or restore the financial position. The specific conditions for the contents and preparation of the recovery plan may be established by the minister responsible for the area by a regulation. The Financial Supervision Authority may require a credit institution to maintain detailed records of financial contracts to which the credit institution is a party.
A credit institution shall submit such information at the request of the Financial Supervision Authority. Financial Supervision Authority shall take into consideration the appropriateness of the credit institution’s capital and funding structure to the level of complexity of the organisational structure and the risk profile of the credit institution. Financial Supervision Authority shall, if necessary, consult financial supervision authorities of the EEA countries where significant branches of the credit institution are located. Act, the Financial Supervision Authority shall take into consideration the appropriateness of the consolidation group’s capital and funding structure to the organisational structure and the risk profile of the consolidation group. If the Financial Supervision Authority exercises supervision over a subsidiary that is part of a consolidation group and assesses that the subsidiary should draw up a recovery plan on an individual basis, the Financial Supervision Authority shall notify the financial supervision authority exercising supervision on a consolidated basis thereof and endeavour to reach a joint decision with it. Financial Supervision Authority shall defer its decision and await the decision of the European Banking Authority and shall take its decision in accordance with the decision of the European Banking Authority. The joint decision provided for in this section or the decisions taken by the Financial Supervision Authority in the absence of a joint decision shall be recognised as conclusive with regard to resolution authorities of other EEA countries.
Financial Supervision Authority to require a subsidiary credit institution established in Estonia that is part of a consolidation group to draw up a separate recovery plan. Where the Financial Supervision Authority identifies material deficiencies in the recovery plan or material impediments to its implementation, the Financial Supervision Authority shall notify the credit institution or the parent undertaking that those deficiencies or impediments must be remedied within two months of the date of receipt of the notification. Act cannot apply for the preparation of a simplified recovery plan. Financial Supervision Authority immediately after making or becoming aware of the changes. If the applicant has failed to submit all the specified documents or the documents are incomplete or have not been prepared in accordance with the requirements or if the specified assessment is incomplete, the Financial Supervision Authority has the power to require the applicant to remove the deficiencies.