Recital 17

(17) It is necessary to ensure the suitability and effectiveness of the recovery and resolution framework while avoiding unnecessary administrative burdens and costs on undertakings and authorities. The implementation of such recovery and resolution framework should therefore be proportionate to the nature, scale and complexity of the undertaking concerned, and of its activities and services. In addition, the differences between recovery on the one hand and resolution on the other, should be taken into account. Regarding the scope of the recovery and resolution planning requirements, authorities should determine, on the basis of sets of risk-based criteria, which undertakings are subject to the fully-fledged or simplified planning requirements. To foster trust in the insurance and reinsurance single market and to foster a level playing field, a minimum degree of preparedness should be achieved through laying down a minimum market coverage level for the life insurance and reinsurance market and for the non-life insurance and reinsurance market. Regarding the scope of the resolution planning requirements, authorities should determine for which undertakings it is more likely relative to other undertakings under their remit that resolution action would be in the public interest in the event of failure or which undertakings carry out critical functions.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-14 · Text as adopted (Official Journal); later amendments are not incorporated in this text.