Question ID
2015_2091
Legal act
Directive 2014/59/EU (BRRD)
Topic
Recovery plans
Article
7
Paragraph
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Competent authority
Subject matter
Joint control (by more than one Union parent undertaking) over a subsidiary
Question

Into which group recovery plan a subsidiary which is jointly controlled by more than one Union parent undertaking should be included?

Background on the question

Article 7 (1) of Directive 2014/59/EU (BRRD) seems to consider only subsidiaries controlled by a single Union parent undertaking, but it does not address the issue of joint control over a subsidiary. In the case of a joint control of two or more Union parent undertakings over a subsidiary, it is hence not clear into which group recovery plan such a subsidiary should be included.

Submission date
Final publishing date
Final answer

References to "subsidiary" should be interpreted in accordance with definition provided in Article 2 (5) of the BRRD which refers to Regulation (EU) No 575/2013 (CRR) and, through it, to Directive 83/349/EEC. Depending on this, the controlled entity should be included in group recovery plans of those parents to which it qualifies as a subsidiary (possibly including a situation where the controlled entity is included in more than one group recovery plan).

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.

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.