AI Summary of Article 27 Early intervention measures
Member States shall ensure competent authorities consider without undue delay and, if appropriate, apply early intervention measures where an institution or entity (Art 1(1)(b),(c),(d)) meets the conditions in Art 102 of Directive 2013/36/EU or Art 38 of Directive (EU) 2019/2034, or where a supervisory review under Art 97 of Directive 2013/36/EU finds that arrangements, strategies, processes, own funds or liquidity do not ensure sound risk management and either (i) required remedial actions (including Art 104 of Directive 2013/36/EU or Art 39 of Directive (EU) 2019/2034) have not been taken, or (ii) remedial actions other than early intervention are insufficient. Early intervention also applies where Art 45e or 45f are breached or where infringements of MiFID II Title II or MiFIR (Arts 3–7, 14–17, 24–26) are likely within 12 months; resolution or competent authorities must inform without delay.
Early intervention measures include requiring management to implement or update and implement recovery plan measures; convening shareholders (and setting the agenda); preparing creditor restructuring plans; changing legal structure; removing or replacing senior management or the management body; appointing temporary administrators; and preparing voluntary wind‑down plans. Measures must be proportionate to the objectives, taking account of seriousness and pace of deterioration. Authorities must set strictly limited implementation deadlines, evaluate effectiveness on expiry and share evaluations with the resolution authority; if measures fail, authorities may assess whether the conditions in Art 32(1)(a) for resolution are met. The EBA shall issue guidelines by 11 May 2028.
Article 27 Early intervention measures
1. Member States shall ensure that competent authorities consider without undue delay and, if appropriate, apply early intervention measures where an institution or entity referred to in Article 1(1), point (b), (c) or (d):
(a) meets the conditions referred to in Article 102 of Directive 2013/36/EU or in Article 38 of Directive (EU) 2019/2034, or the competent authority has determined, in the context of a supervisory review and evaluation process in accordance with Article 97 of Directive 2013/36/EU, that the arrangements, strategies, processes and mechanisms implemented by the institution or entity and the own funds and liquidity held by that institution or entity do not ensure a sound management and coverage of its risks, and either of the following applies:
(i) the institution or entity has not taken the remedial actions required by the competent authority, including the measures referred to in Article 104 of Directive 2013/36/EU or in Article 39 of Directive (EU) 2019/2034;
(ii) the competent authority deems that remedial actions other than early intervention measures are insufficient to address the problems of that institution or entity;