Resolution Authority

Pursuant to the Recovery and Resolution of Credit Institutions and Investment Intermediaries Act (RRCIIIA), the Financial Supervision Commission (FSC, the Commission) is a resolution authority on an individual and consolidated basis with respect to investment intermediaries licensed by the Financial Supervision Commission. (FSC) under Art. 6, para. 2, items 3 and 6 and under Art. 6, para. 3, item 1 of the Markets in Financial Instruments Act (MFIA), financial institutions, financial holding companies and mixed financial holding companies, branches in Member States and third countries, when subject to FSC supervision.

The Commission exercises powers as a resolution authority, and in the rules of the FSC there is a set independent structural unit which assists the Commission and the member of the commission under Art. 3, item 5 of the FSCA in the performance of their functions, which is separate and independent of the functions related to the exercise of supervision of investment activities and other functions of the Commission.

As a resolution authority, the FSC prepares and maintains resolution plans, assesses the possibility of resolution, implements measures to remove obstacles to the possibility of resolution, imposes simplified requirements, determines the minimum requirement for equity and eligible liabilities, takes action and implements instruments for resolution and manages the national resolution financing mechanism in order to ensure the continuity of critical functions, avoid significant adverse effects on financial stability, ensure the protection of public funds, ensure the protection of clients’ funds and assets.

The Single Resolution Mechanism (SRM)

As of 1 October 2020, as a result of the establishment of close cooperation with the European Central Bank (ECB) and the consequent accession to the Single Resolution Mechanism (SRM), in the performance of its tasks and in the exercise of its powers for resolution of investment intermediaries who received a license to perform their activity from the FSC under Art. 6, para. 2, items 3 and 6 and under Art. 6, para. 3, item 1 of the MFIA, financial institutions, financial holdings and mixed financial holdings that fall within the scope of consolidated supervision of the parent company exercised by the ECB, the FSC performs the function of a resolution authority together with the SRB by performing tasks and adopting decisions for resolution, following the guidelines and general instructions issued by the Single Resolution Board (SRB).