Single Rulebook Q&A

Question ID: 2016_2906
Legal act : Directive 2014/59/EU (BRRD) as amended
Topic : MREL
Article: 11
Paragraph: 3
Subparagraph:
Article/Paragraph : 0
COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
Type of submitter: Consultancy firm
Subject matter : Minimum requirement for own funds and eligible liabilities (MREL) - procedures, forms and templates
Question:

1. Will the MREL-reporting template for all institutions (not just those overseen by the SRB) be based on the SRB’s current LDT rather than Annex V of the EBA final draft ITS on resolution plans?

2. Will electronic data delivery be in the form of XBRL?

3. Will the templates and electronic format be published in 2016?

Background on the question:

The BRRD, "Delegated Regulation (EU) 2016/1450 of 23 May 2016 supplementing the BRRD with regard to regulatory technical standards (RTS) specifying the criteria relating to the methodology for setting the minimum requirement for own funds and eligible liabilities (MREL)", as well as the German law on the reorganization and liquidation of banks and financial groups (Sanierungs- und Abwicklungsgesetz - SAG) provide a legal basis for the collection of relevant data from financial institutions in Germany.

The draft implementing technical standards (ITS) for resolution plans (MREL - Annex V) was published by the European Banking Authority (EBA) on 07.07.2015 (EBA/ITS/2015/06).

On 22.02.2016 the Single Resolution Board (SRB) issued the final Liability Data Template (LDT).

The corresponding "Guidance on the LDT" was updated on 29.04.2016. The final specification of MREL reporting requirements are however yet to be published, nor has an electronic format for reporting been announced. Nonetheless, regular reporting is expected to begin in 2017 and preparations must already be under way. In order to develop our reporting software in time to meet these obligations, we have been making assumptions that we would like to have confirmed by the relevant authorities.

Date of submission: 15/09/2016
Published as Final Q&A: 20/10/2017
EBA answer:

Commission Regulation (EU) 2016/1066 laying down the Implementing Technical Standards on procedures, forms and templates for resolution planning (the "ITS") was adopted on 17 June 2016[1]. The Regulation defines a minimum set of templates and information items to be collected from institutions and entities referred to in points (b), (c) and (d) of Article 1(1) BRRD for the purpose of drawing up and implementing resolution plans. It is binding in all Member States of the European Union.

Each resolution authority has the responsibility to determine what information is necessary to draw resolution plans. Based on this assessment, each resolution authority is entitled to decide whether the information covered by the ITS is sufficient to draw the resolution plan, or whether additional information is required.

With regard to the format for providing the necessary information for the purpose of resolution planning, Article 2(4) of the ITS states that "[w]here the information required by the resolution authority is included in one of the categories set out in Article 3, the institution shall provide that information to the resolution authority by submitting the appropriate form or template contained in Annexes" to the ITS. Article 2(5) of the ITS states that "[w]here the information required by the resolution authority is not included in one of the categories set out in Article 3 the information shall be provided in the format requested by the resolution authority." Each resolution authority is free to determine this format.

Furthermore, the ITS does not prescribe the technical details for submitting this  information. The resolution authorities determine the technical format of the information and the timeline to be followed by the institutions.

This is without prejudice to other types of data collection the authorities might perform for purposes other than resolution planning.

This answer is notwithstanding any amendments of Regulation (EU) 2016/1066 which are currently under consultation.



[1] OJ L 181, 6.7.2016, p. 1–38.

Status: Final Q&A
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