Articles 4(8) and (9) of Directive 2014/59/EU (BRRD) provide that the competent authorities may only grant a waiver from the application of the "requirements of Section 2 to institutions". When this waiver is granted, under Article 4(9), the members of the IPS are exempted to draft individual recovery plans. The IPS then drafts a single recovery plan for all the IPS members. This means that the requirements laid down in Section 2 for the IPS to submit the IPS recovery plan to the competent authority and for the competent authorities, i.e. the duty to assess the recovery plan of the IPS, may not be waived. Competent authorities, according to Article 4(9) should also have evidence, that the IPS recovery plan is drawn up and updated in cooperation with each of the IPS' waived members.

Please also note that in accordance with Article 4(10), the obligation to submit a recovery plan cannot be waived for those members of the IPS that are subject to direct supervision by the European Central Bank.

Disclaimer:

This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.