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RAR 3.4.7

(1) A Business Reorganisation Plan shall, where the Bail-in Tool has been used to recapitalise an Authorised Firm, be drawn up and implemented for that Authorised Firm in accordance with this Rule.
(2) The DFSA may require persons to be appointed (under its powers over an Authorised Firm in Resolution under Article 84N of the Law) for the purpose of drawing up and implementing the Business Reorganisation Plan.
(3) The management of the Authorised Firm shall, within one month after the application of the Bail-in Tool to that Authorised Firm, draw up and submit to the DFSA a Business Reorganisation Plan that satisfies the requirements in (6).
(4) Where the Bail-in Tool is applied to two or more Group entities, including where a Recognition Order has been made, a Group level Business Reorganisation Plan may be accepted by the DFSA for the purpose of this Rule.
(5) The DFSA may, in exceptional circumstances, and if it is necessary for achieving the Resolution Objectives, extend the period in (3) up to a maximum of two months from the date of the application of the Bail-in Tool.
(6) A Business Reorganisation Plan shall contain at least the following:
(a) a detailed diagnosis of the factors and problems that caused the Authorised Firm to fail or to be likely to fail and the circumstances that led to its difficulties;
(b) a description of the measures aiming to restore the long-term viability of the Authorised Firm or parts of its business that are to be adopted, on the basis of realistic assumptions as to the economic and financial market conditions under which the Authorised Firm will operate; and
(c) a timescale for the implementation of those measures.
(7) The DFSA shall, within one month of the submission of the Business Reorganisation Plan by the Authorised Firm, assess the likelihood that the Business Reorganisation Plan, if implemented, is likely to restore the long-term viability of the Authorised Firm.
(8) If following its assessment under (7), the DFSA is satisfied that the Business Reorganisation Plan is likely to restore the long-term viability of the Authorised Firm, the DFSA may approve the plan.
(9) If following its assessment under (7), if the DFSA is not satisfied that the Business Reorganisation Plan is likely to restore the long term viability of the Authorised Firm, the DFSA shall notify the management of the Authorised Firm or persons appointed under (2) of its concerns and require the Business Reorganisation Plan to be amended in a way that will address those concerns.
(10) The management of the Authorised Firm or persons appointed under (2) shall, within two weeks of receiving a notification by the DFSA under (9), submit an amended Business Reorganisation Plan to the DFSA for approval.
(11) The DFSA shall, within one week of receipt of the amended Business Reorganisation Plan submitted under (10), assess the amended Business Reorganisation Plan and notify the management of the Authorised Firm or persons appointed under (2) as to whether the DFSA is satisfied that the amended Business Reorganisation Plan addresses the concerns notified or whether further amendment is required.
(12) The management of the Authorised Firm or persons appointed under (2) shall implement the Business Reorganisation Plan as approved by the DFSA.
(13) The management of the Authorised Firm or persons appointed under (2) shall submit a report to the DFSA on the progress of the implementation of the Business Reorganisation Plan at least every six months or until the DFSA, in writing, specifies otherwise.
(14) A Business Reorganisation Plan may be further amended following its initial implementation if the DFSA is of the view that changes to the plan are required to achieve the long-term viability of the Authorised Firm.

 

Derived from DFSA RMI283/2020 (Made 16th December 2020). [VER1/04-21]