2015_2183 Resolution authorities in the function of special manager

Question ID:

2015_2183

Legal Act:

Directive 2014/59/EU (BRRD)

Topic:

Special management

Article:

Paragraph:

(1), (8)

COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:

Not applicable

Article/Paragraph:

n.a.

Disclose name of institution / entity:

Type of submitter:

Competent authority

Subject Matter:

Resolution authorities in the function of special manager

Question:

Is it possible for resolution authorities to perform simultaneously the function of "special manager" of an authority mentioned in Article 35(1) of Directive 2014/59/EU (BRRD) under the assumption, that in accordance with national law it can perform the "insolvency management" function mentioned in Article 35(8) of Directive 2014/59/EU (BRRD)?

Background on the question:

Date of submission:

29/07/2015

Published as Final Q&A:

11/11/2016

Final Answer:

According to Article 72(1) of Directive 2014/59/EU (BRRD), resolution authorities shall be able to exercise control over institution under resolution in order to operate it with all the powers of shareholders, management body and senior management and also to conduct its services and activities. A resolution authority can do so directly or indirectly, by a person or persons appointed by the resolution authority. Special management is a case of such indirect control. Thus it is possible that the resolution authority exercises control of the institution under resolution by appointing special manager and also performs insolvency management function in accordance with national law as explicitly mentioned in Article 35(8) BRRD.

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:

Final Q&A

Answer prepared by:

Answer prepared by the European Commission because it is a matter of interpretation of Union law.

Note to Q&A:

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.