Article 37(7) of Directive 2014/59/EU (BRRD) provides that the resolution authority may recover the reasonable expenses incurred in resolution from the institution under resolution in a number of ways. May Member States further provide that those costs are to be paid upfront by the institution under resolution?
The Directive does not explicitly specify who is to be responsible for paying the expenses of the following persons: a. Special manager; b. Temporary administrator; c. Independent valuer; d. No creditor worse off valuer.
There are two possibilities: - The resolution authority pays the expenses, and recovers these in one of the ways specified in Article 37 (7) of Directive 2014/59/EU (BRRD); - The institution pays the expenses directly (as would be normal for a liquidator or administrator in national law).
Article 37(7) BRRD does not preclude Member States from providing that the reasonable expenses incurred in relation to resolution are to be directly incurred by the institution under resolution, and not only ultimately borne by it through the mechanisms referred to in that provision.
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