- Question ID
-
2016_3042
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Intra-group financial support
- Article
-
19-26
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
N/A
- Type of submitter
-
Competent authority
- Subject matter
-
Recapitalization
- Question
-
Are capital increases of a subsidiary meeting the conditions for early intervention by the mother company covered by the BRRD provisions on intragroup financial support?
- Background on the question
-
In line with the retained SPE resolution strategy for the group, a key recovery option for subsidiaries could be a capital increase of the subsidiary by the parent undertaking, subject to a case by case business analysis. Such recovery option is to be considered as soon as the capital level of the subsidiary falls below a certain level (in the early intervention zone). Should the granting of such intragroup financial support be performed in line with the BRRD provisions on intragroup financial support? Should e.g. this commitment be laid down in an ex ante contract authorized by the CA, and do the other relevant provisions apply?
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
For further information please refer to the press release and the updated Q&A page.
- Status
-
Rejected question