- Question ID
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2015_2069
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Resolution objectives and triggers
- Article
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Recital 41
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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n.a.
- Type of submitter
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Competent authority
- Subject matter
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Clarification to Recital 41
- Question
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Do you agree that the word “not” is missing in Recital 41 and should be corrected? (“Resolution should be initiated when a competent authority, after consulting a resolution authority, determines that an institution is failing or likely to fail and alternative measures as specified in this Directive would not prevent such failure within a reasonable timeframe.”)
- Background on the question
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Recital 41 of Directive 2014/59/EU (BRRD) would not make sense without introducing stating “Resolution […] would not prevent such failure within a reasonable timeframe.”
- Submission date
- Final publishing date
-
- Final answer
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Yes, the word "not" is missing. This becomes clear from the legal text itself, for instance in Article 32 (conditions for resolution) of Directive 2014/59/EU (BRRD); the mistake in the recital does not, therefore, create any legal uncertainty.
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.
.
- Status
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Final Q&A
- Answer prepared by
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Answer prepared by the European Commission because it is a matter of interpretation of Union law.
- Note to Q&A
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Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.