Prudential Regulation Authority Rulebook

2.1

1. (1) Subject to (2), every firm must prepare and maintain an adequate recovery plan.
2. (2) If a group has within it more than one firm to which this Part applies, only one of those firms needs to have a recovery plan, so long as that plan contains content for each firm in the group that complies with 2.3, 2.4, 2.5 and 2.6.

2.2

A firm must provide its recovery plan to the PRA by online submission through:

1. (1) email; or
2. (2) the appropriate systems made available to firms.

2.3

The recovery plan must set out the actions that could be taken to secure that:

1. (1) the business of the firm; or
2. (2) any part of the business of the firm,

is capable of being carried on and returned to a stable and sustainable condition (whether or not by the firm and whether or not in the same way as previously) if circumstances arise which adversely affect the carrying on of the business (or any part of the business) of the firm.

2.4

The recovery plan must contain a comprehensive range of options setting out actions that could be taken in a number of different scenarios and stresses, whether by:

1. (1) the firm alone; or
2. (2) the firm in conjunction with other members of its group; or
3. (3) by another member of the group.

2.5

The recovery plan must, in particular, include:

1. (1) the actions that could be taken to return the firm to adequate levels of capital and liquidity; and
2. (2) the applicable governance arrangements, and indicators when options in the recovery plan might be employed, and procedures to ensure the timely implementation of the actions.

2.6

A firm must notify the PRA as soon as it becomes aware that the firm’s recovery plan indicators have been met.

2.7

A firm’s recovery plan must take into account the wider business of the group of which the firm is a member.

[Note: Art 74(4) of the CRD]