- Question ID
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2015_2077
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Other topics
- Article
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3
- Paragraph
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10
- 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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Designation of several authorities as resolution authority
- Question
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Is it possible according to Article 3 (10) of Directive 2014/59/EU (BRRD) to make specified resolution authorities responsible for the resolution of particular groups or entities and/or to divide the responsibilities for certain stages of resolution amongst them?
- Background on the question
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Article 3 (10) of Directive 2014/59/EU (BRRD) seems to be unclear on the limits as to on what basis a Member State can designate more than one authority as resolution authority, and as to whether it is possible to make specified resolution authorities responsible for the resolution of particular groups or entities, as well as on whether it is possible to divide the responsibilities for certain stages of resolution between two separate entities.
- Submission date
- Final publishing date
-
- Final answer
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The general rule in Directive 2014/59/EU (BRRD) is that there is one resolution authority (Article 3 (1)). If there is more than one authority, the Directive does not ask for a specific basis on which responsibilities of resolution authorities should be allocated. According to Article 3 (10) of Directive 2014/59/EU (BRRD), Member States are required to ensure that functions and responsibilities are allocated clearly between authorities in case there is more than one, and that adequate cooperation is in place. In addition, one authority shall be designated as a contact authority for the purposes of cooperation and coordination with the relevant authorities of other Member States.
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.
Disclaimer
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.