How do Articles 15(3) and 17(2) of Directive 2014/59/EU (BRRD) interact with each other?
Article 17(2) of Directive 2014/59/EU (BRRD) provides that, if authorities assess that an institution or a group is not resolvable, “the requirement for resolution authorities to draw up resolution plans [...] shall be suspended”. However, under Article 15(3) BRRD the resolvability assessment should be carried out not only while drawing up a resolution plan, but also while updating it.
The underlying rationale in both Articles 15(3) and 17(2) BRRD is the same, i.e. if impediments to resolvability are identified in the process of resolvability assessment for the purpose of drawing up or updating the resolution plan, the requirement (but not the prerogative) for the resolution authority to draw up or update the resolution plan is suspended, as per Article 17(2) BRRD, until measures to address impediments to resolvability are proposed by the institution and accepted or ordered by the resolution authority following the process as set out in Article 17(4) BRRD.
The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.