| 4.1 | Groups must draw up recovery plans that cover all of the Financial Institutions within the group, and must consider in their plan the scenarios, recovery options, indicators and thresholds relevant for each Financial Institution in the group.
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| 4.2 | The aim of the group recovery plan is to achieve the recovery of the group as a whole, or of one or more Financial Institutions within that group while considering the impact on the group as a whole.
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| 4.3 | Group recovery plans must include an overview of the arrangements in place to enable intra-group financial support, where applicable.
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| 4.4 | The group recovery plan should provide an overview of any material links between group entities, including for example back-to-back transactions and guarantees.
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| 4.5 | Group recovery plans must identify and set out any possible practical, legal or other impediments that may prevent the implementation of recovery options that involve multiple entities in the group, and in particular when the options involve transfers between group entities.
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| 4.6 | Group recovery plans must be assessed and approved by the parent entity of the group’s board of directors.
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| 4.7 | For a Financial Institution whose head office is in the UAE, the recovery plan must cover the entire group.
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| 4.8 | For a Financial Institution that is a UAE subsidiary of an institution whose parent entity is outside the UAE, the recovery plan must cover the UAE subsidiary. The recovery plan must be consistent with and complement the group’s recovery plan and clearly set out the interactions and interdependencies between the local and group recovery plans.
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| 4.9 | For a Financial Institution that is a UAE branch of a foreign institution, the recovery plan must be tailored to its local operations. The Central Bank may require the branch to disclose fully or partially the recovery plans prepared by the foreign institution at the level of its group and may at its discretion determine that such recovery plan suffices to meet the requirements under this Regulation or recommend changes thereto for this purpose. In making this determination, the Central Bank will consider whether the local operations have been sufficiently considered in the group recovery plan.
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| 4.10 | For a group recovery plan to be deemed to sufficiently cover the local operations, the group recovery plan must at a minimum:
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| | 4.10.1 | | describe whether and how, the major recovery options in the group recovery plan, if deployed, would impact the UAE operations either directly or indirectly;
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| | 4.10.2 | | demonstrate how recovery plan actions at the group level may be triggered by the occurrence of severe stress events in the UAE;
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| | 4.10.3 | | describe the process for activating the group recovery plan, specifying the local UAE management’s role and involvement in the recovery planning process and outlining the conditions for execution of recovery options (such as the necessary steps, estimated implementation time and cross-border considerations); and
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| | 4.10.4 | | illustrate how the recovery options are expected to restore the financial position and overall viability of the operations in the UAE.
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| 4.11 | The Central Bank may require Financial Institutions in a group to have recovery plans of their own, in addition to the group recovery plan. |