Following the approval of the above amending law on 19 June 2014, the Central Bank of Cyprus (CBC) is designated as the new Resolution Authority. The law also provides for the establishment of a Resolution Committee, comprised of the Governor of the CBC and two of the CBC’s executive directors. This Committee shall mainly be responsible for the implementation of the law and the issuance of decrees or directives. The CBC shall also set up a Resolution Unit to provide support to the Resolution Authority in exercising its powers and performing its duties.
However, decisions on topics that have an impact on public finances, or topics of systemic importance, shall be taken only if the Minister of Finance gives consent. Such issues may include the following:
• decisions on the resolution of a credit institution, and the implementation of the resolution measures relating to it;
• the issuance of a decree with regard to the transfer of assets, rights or liabilities of an institution under resolution to a bridge bank;
• the issuance of a decree with regard to the transfer of assets and rights to an asset management company set up by the Resolution Authority;
• the issuance of a decree with regard to the restructuring of debt or liabilities of the institution under resolution;
• the sale of operations of an institution without complying with the marketing requirements, in cases that compliance with those requirements would be likely to undermine the resolution objectives.
The Resolution Authority shall have the power to request and obtain any information deemed necessary under the law. Moreover, when exercising its competence, it shall have the power to order investigation measures, such as the right to search premises and obtain access to documents, book-keeping or computer data, and impose administrative fines. Criminal offences are also provided for the supply of false or misleading information, or in case of omission to provide information to the Resolution Authority.