Common use of General Framework Clause in Contracts

General Framework. 2. This CA is a statement of intent to consult, cooperate, and exchange information in connection with the preparation for and implementation of the Resolution of Entities in Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina and in the European Banking Union in a manner consistent with and permitted by the laws and requirements that govern the Authorities. The Authorities will take steps to continue and enhance ongoing cooperation and communication through periodic and ad-hoc consultations between them, both during normal business-as-usual circumstances and during periods of financial distress. As the condition of an Entity deteriorates, it is expected that cooperation between the Authorities will intensify as well. Additional communications may take place under the terms of this CA or as otherwise agreed by the Authorities. 3. The SRB fulfils the tasks of a European Resolution Authority as part of the SRM in accordance with the SRM Regulation. The main aims of the SRM are to ensure effective and uniform resolution rules and equal conditions of resolution financing across Participating Member States under a centralised power of Resolution. The SRB is responsible for the collection of information and the cooperation with National Resolution Authorities for the elaboration of resolution planning for entities under its scope, including the assessment of resolvability and the determination of the minimum requirement for own funds and eligible liabilities. In performing its tasks the SRB works with Other Relevant Authorities, which in some instances are the primary sources of certain relevant information and with which requests for such information must be coordinated. It is responsible for the adoption and monitoring of execution of resolution schemes for all entities falling under its direct scope of responsibilities as set by the SRM Regulation. In accordance with Article 18(7) of the SRM Regulation, the European Commission and the Council of the European Union are responsible for approving or objecting to the resolution scheme adopted by the SRB with regard to the scheme's discretionary aspects. Moreover, pursuant to Articles 7(3) and 31(1) of the SRM Regulation, the SRB receives from National Resolution Authorities any draft decisions on which it may express its views. In case of non-compliance and where necessary to ensure the consistent application of high Resolution standards the SRB may issue warnings to the relevant National Resolution Authority. Furthermore, at any time, the SRB may decide to exercise direct powers under Article 7(4) of the SRM Regulation. The SRB also represents National Resolution Authorities of the Participating Member States for the purpose of consultation and cooperation with Non-participating Member States or third countries pursuant to Article 32(1) of the SRM Regulation and concludes cooperation arrangements on behalf of National Resolution Authorities of Participating Member States pursuant to Article 32(4) of the SRM Regulation. This does not affect the FBA’s ability to communicate, share information and establish relations with National Resolution Authorities, provided that the FBA informs the SRB accordingly. 4. The FBA is, according to the Law on Banking Agency of the Federation of Bosnia and Herzegovina, responsible, among other, for determining and fulfilment of requirements for initiation of bank resolution procedure, conducting the resolution procedure, deciding on instruments and measures to be undertaken in resolution procedure and performing other tasks related to resolution in accordance with the Law on Banks of the FBiH. 5. This CA expresses the Authorities’ intent to enhance and strengthen their consultation and cooperation in understanding the complexities inherent in the cross-border operations of Entities, in conducting cooperative analyses of the challenges in the Resolution of such Entities, and in contingency planning for such challenges and Resolutions. This CA is based on the principles of reciprocity and proportionality. 6. This CA does not constitute an agreement binding under international law. 7. This CA does not create any legally binding obligations, confer any rights, modify, supersede any domestic laws or restrict the Authorities in the exercise of their statutory powers and functions. This CA does not confer any rights upon any Person, including any right or ability directly or indirectly to obtain, suppress, or exclude any information or to challenge the execution of a request for assistance under this CA. Finally, this CA does not constitute waivers of immunity or privilege. 8. The Authorities acknowledge that any particular assistance, information or cooperation may be provided pursuant to the CA only if permitted under their respective laws, regulations or requirements. 9. This CA does not affect any arrangements under other agreements or memoranda of understanding, including any Entity-specific cooperation agreements, nor does this CA limit the terms of future arrangements. 10. This CA does not limit an Authority from taking solely those measures described herein in fulfilment of its Resolution or other functions. In particular, this CA does not affect any right of an Authority to communicate with, or obtain information or documents from, any Person subject to its jurisdiction that is located in the territory of the other Authority. 11. The Authorities intend that the cooperation and information sharing under this CA should be implemented in a manner that is compatible with the obligations and commitments that an Authority may have to an asset management, banking or other regulatory Authority or agency pursuant to memoranda of understanding or other agreements. 12. The Authorities intend periodically to review the functioning and effectiveness of cooperation arrangements between them with a view, inter alia, to expanding or altering the scope or operation of this CA should that be judged necessary. Such periodic review will seek to ensure that this CA accommodates and responds to changing circumstances and benefits from lessons learned. It will also be updated if there are material developments – for example, changes to either of the Authorities’ responsibilities – that are likely to impact the way the FBA and the SRB work together. 13. Managing a crisis involving the cross-border activities of an Entity is a matter of common interest for Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina and the European Banking Union. The successful management and Resolution of a crisis involving an Entity with significant cross-border activities in Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina and the European Banking Union requires careful ex ante preparation to establish optimal processes and steps to ensure effective coordination and implementation of possible monitoring of Entities, crisis management, recovery and Resolution strategies. 14. Arrangements and tools for cross-border Resolution should be flexible and designed to allow for adaptation to the specific features of a crisis and the individual institutions involved. Cross-border arrangements will build on effective Resolution regime arrangements and cooperation between the Authorities, and the Authorities should undertake steps to improve their ability promptly to assess the broader effects of any financial crisis and its cross-border implications based on common terminology and analyses. 15. Arrangements for crisis Resolution should reflect the division of responsibilities between the Authorities and other responsible regulators and supervisors, and the coordinating role of home country regulators and supervisors. Where possible and feasible, the Authorities should implement Resolution options that are consistent with their respective Resolution objectives, in particular aimed at pursuing financial stability and protecting insured depositors, insurance policy holders and other retail customers, duly considering the potential impact of their Resolution actions on the financial stability of Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina and the European Union. 16. The Authorities recognise the importance of the cross-border crisis management groups (“CMGs”) as developed by the Financial Stability Board (“FSB”) under the Financial Stability Forum (“FSF”) Principles for Cross-border Cooperation on Crisis Management (April 2009) and the FSB Recommendations on Reducing the Moral Hazard posed by Systemically Important Financial Institutions (2010), and intend to work together to ensure that the CMGs in which they jointly participate effectively strengthen institution-specific cross-border Resolution preparation and arrangements, consistent with the FSF Principles for Cross-border Cooperation on Crisis Management (April 2009) and the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions as adopted by the G20 at the Cannes Summit in November 2011 and as amended in October 2014. In addition, key principles on how to establish appropriate information sharing mechanisms with host authorities, who are not members of the CMG are laid out in the 2015 FSB guidance on cooperation and Information Sharing with Host Authorities of Jurisdictions where a G-SIFI has a Systemic Presence that are Not Represented on its CMG. 17. The Authorities acknowledge that the Authority establishing, or which has established a Crisis Management Group will define its composition in line with the FSB’s standards and guidelines. It will promptly consider a membership request from the other Authority in good faith and consistent with such FSB’s standards, in particular taking into consideration the criterion of materiality of the entity hosted by the requesting Authority to the resolution of the group. The Authority that established resolution venues, such as resolution colleges, structured meetings or other fora, will consider a membership request received from the other Authority in good faith and consistent with the applicable legal framework.

General Framework. 2. This CA is a statement of intent to consult, cooperate, and exchange information in connection with the preparation for and implementation of the Resolution of Entities in Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina Malaysia and in the European Banking Union in a manner consistent with and permitted by the respective laws and requirements that govern the Authorities. The Authorities will take steps to continue and enhance ongoing cooperation and communication through periodic and ad-hoc consultations between them, both during normal business-as-usual circumstances and during periods of financial distress. As the condition of an Entity deteriorates, it is expected that cooperation between the Authorities will intensify as well. Additional communications may take place under the terms of this CA or as otherwise agreed by the Authorities. 3. The SRB fulfils the tasks of a European Resolution Authority as part of the SRM in accordance with the SRM Regulation. The main aims of the SRM are to ensure effective and uniform resolution rules and equal conditions of resolution financing across Participating Member States under a centralised power of Resolution. The SRB is responsible for the collection of information and the cooperation with National Resolution Authorities for the elaboration of resolution planning for entities under its scope, including the assessment of resolvability and the determination of the minimum requirement for own funds and eligible liabilities. In performing its tasks the SRB works with Other Relevant Authorities, which in some instances are the primary sources of certain relevant information and with which requests for such information must be coordinated. It is responsible for the adoption and monitoring of execution of resolution schemes for all entities falling under its direct scope of responsibilities as set by the SRM Regulation. In accordance with Article 18(7) of the SRM Regulation, the European Commission and the Council of the European Union are responsible for approving or objecting to the resolution scheme adopted by the SRB with regard to the scheme's discretionary aspects. Moreover, pursuant to Articles 7(3) and 31(1) of the SRM Regulation, the SRB receives from National Resolution Authorities any draft decisions on which it may express its views. In case of non-compliance and where necessary to ensure the consistent application of high Resolution standards the SRB may issue warnings to the relevant National Resolution Authority. Furthermore, at any time, the SRB may decide to exercise direct powers under Article 7(4) of the SRM Regulation. The SRB also represents National Resolution Authorities of the Participating Member States for the purpose of consultation and cooperation with Non-participating Member States or third countries pursuant to Article 32(1) of the SRM Regulation and concludes conclude cooperation arrangements on behalf of National Resolution Authorities of Participating Member States pursuant to Article 32(4) of the SRM Regulation. This does not affect the FBAPIDM’s ability to communicate, share information and establish relations with National Resolution Authorities, provided that the FBA PIDM informs the SRB accordingly. 4. The FBA is, according PIDM is a statutory body mandated to administer the Law on Banking Agency of national deposit insurance system and the Federation of Bosnia takaful and Herzegovina, responsible, among other, for determining and fulfilment of requirements for initiation of bank resolution procedure, conducting insurance benefits protection system in Malaysia under the Malaysian Law. The PIDM is also the resolution procedureauthority for various financial institutions5, deciding on instruments and measures to be undertaken including banks, in resolution procedure and performing other tasks related to resolution in accordance with the Law on Banks of the FBiH.Malaysia. 5. This CA expresses the Authorities’ intent to enhance and strengthen their consultation and cooperation in understanding the complexities inherent in the cross-border operations of Entities, in conducting cooperative analyses of the challenges in the Resolution of such Entities, and in contingency planning for such challenges and Resolutions. This CA is based on the principles of reciprocity and proportionality. 6. This CA does not constitute an agreement binding under international law. 7. This CA does not create any legally binding obligations, confer any rights, modify, supersede any domestic laws or restrict the Authorities in the exercise of their statutory powers and functions. This CA does not confer any rights upon any Person, including any right or ability directly or indirectly to obtain, suppress, or exclude any information or to challenge the execution of a request for assistance under this CA. Finally, this CA does not constitute waivers of immunity or privilege. 8. The Authorities acknowledge that any particular assistance, information or cooperation may be provided pursuant to the CA only if permitted under their respective laws, regulations regulations, requirements or requirementspolicies. 9. This CA does not affect any arrangements under other agreements or memoranda of understanding, including any Entity-specific cooperation agreements, nor does this CA limit the terms of future arrangements. 10. This CA does not limit an Authority from taking solely those measures described herein in fulfilment of its Resolution or other functions. In particular, this CA does not affect any right of an Authority to communicate with, or obtain information or documents from, any Person subject to its jurisdiction that is located in the territory of the other Authority. 11. The Authorities intend that the cooperation and information sharing under this CA should be implemented in a manner that is compatible with or not in conflict with the obligations and commitments that an Authority may have to an asset management, banking or other regulatory Authority or agency pursuant to other memoranda of understanding or other agreements. 12. The Authorities intend periodically to review the functioning and effectiveness of cooperation arrangements between them with a view, inter alia, to expanding or altering the scope or operation of this CA should that be judged necessary. Such periodic review will seek to ensure that this CA accommodates and responds to changing circumstances and benefits from lessons learned. It will also be updated if there are material developments – for example, changes to either of the Authorities’ responsibilities – that are likely to impact the way the FBA PIDM and the SRB work together. 13. Managing a crisis involving the cross-border activities of an Entity is a matter of common interest for Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina Malaysia and the European Banking Union. The successful management and Resolution of a crisis involving an Entity with significant cross-cross- border activities in Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina Malaysia and the European Banking Union requires careful ex ante preparation to establish optimal processes and steps to ensure effective coordination and implementation of possible monitoring of Entities, crisis management, recovery and Resolution strategies. 14. Arrangements and tools for cross-border Resolution should be flexible and designed to allow for adaptation to the specific features of a crisis and the individual institutions involved. Cross-border arrangements will build on effective Resolution regime arrangements and cooperation between the Authorities, and the Authorities should undertake steps to improve their ability promptly to assess the broader effects of any financial crisis and its cross-border implications based on common terminology and analyses. 15. Arrangements for crisis Resolution should reflect the division of responsibilities between the Authorities and other responsible regulators and supervisors, and the coordinating role of home country regulators and supervisors. Where possible and feasible, the Authorities should implement Resolution options that are consistent with their respective Resolution objectives, in particular aimed at pursuing financial stability and protecting insured depositors, insurance policy holders and other retail customers, duly considering the potential impact of their Resolution actions on the financial stability of Bosnia and Herzegovina – the Federation of Bosnia and Herzegovina Malaysia and the European Union. 16. The Authorities recognise the importance of the cross-border crisis management groups (“CMGs”) as developed by the Financial Stability Board (“FSB”) under the Financial Stability Forum (“FSF”) Principles for Cross-border Cooperation on Crisis Management (April 2009) and the FSB Recommendations on Reducing the Moral Hazard posed by Systemically Important Financial Institutions (2010), and intend to work together to ensure that the CMGs in which they jointly participate effectively strengthen institution-specific cross-border Resolution preparation and arrangements, consistent with the FSF Principles for Cross-border Cooperation on Crisis Management (April 2009) and the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions as adopted by the G20 at the Cannes Summit in November 2011 and as amended in October 2014. In addition, key principles on how to establish appropriate information sharing mechanisms with host authorities, who are not members of the CMG are laid out in the 2015 FSB guidance on cooperation and Information Sharing with Host Authorities of Jurisdictions where a G-SIFI has a Systemic Presence that are Not Represented on its CMG. 17. The Authorities acknowledge that the Authority establishing, or which has established a Crisis Management Group will define its composition in line with the FSB’s standards and guidelines. It will promptly consider a membership request from the other Authority in good faith and consistent with such FSB’s standards, in particular taking into consideration the criterion of materiality of the entity hosted by the requesting Authority to the resolution of the group. The Authority that established resolution venues, such as resolution colleges, structured meetings or other fora, will consider a membership request received from the other Authority in good faith and consistent with the applicable legal framework.