List of Q&As

Definition of the target level for national resolution systems since 2016

How should national resolution authorities continue calculating the ex-ante contributions of investment firms that do not fall in the scope of Commission Delegated Regulation (EU) 2015/63?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements

ID: 2015_2507 | Topic: Resolution financing arrangements | Date of submission: 07/12/2015

Composition of resolution college

For the purpose of Article 88(2)(g)) of Directive 2014/59/EU (BRRD), should “the authority that is responsible for the deposit guarantee scheme of a member state” be the “designated authority” in accordance to Article 2(1)(18) of Directive 2014/49/EU (DGSD)?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2457 | Topic: Other topics | Date of submission: 03/11/2015

Resolution plan for an institution without any critical economic functions

Is the resolution authority under the obligation to elaborate resolution plans even for institutions without critical functions for which the waiver under Article 4(8) of Directive 2014/59/EU (BRRD) is not available? Must the resolution authority elaborate resolution plans for groups that do not have any critical functions?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2455 | Topic: Resolution plans | Date of submission: 03/11/2015

Variable component of the remuneration of material risk takers

What types of liabilities are excluded from the exemption under Article 44(2)(g)(i)is by the reference to Article 92(2) of Directive 2013/36/EU (CRD) in the second subparagraph of Article 44(2) of Directive 2014/59/EU (BRRD)?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2432 | Topic: Resolution tools and powers | Date of submission: 20/10/2015

Interaction of shares transfer with the resolution process

Is there a difference in process between the transfer effected under the sale of business tool and the transfer effected under the bridge institution tool, whereby the resolution entity’s shares are, first, transferred to a bridge institution and, later, to a third entity, pursuant to Article 40(6)(b) of Directive 2014/59/EU (BRRD)?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2360 | Topic: Resolution tools and powers | Date of submission: 30/09/2015

Payment of consideration in shares of a bridge institution

Is it possible to pay the consideration mentioned in Article 40 (4) of Directive 2014/59/EU (BRRD) in shares of a bridge institution? Is the same possible in case the asset separation tool has been applied?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2343 | Topic: Resolution tools and powers | Date of submission: 30/09/2015

API functionality

Does Article 64(2) of PSD2 limit the ability of Payment Initiation Service Providers (PISPs) to initiate a single payment transaction for immediate execution only?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2018_4096 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 10/07/2018

Strong customer authentication requirement on pay-by-invoice payment transactions

Does Article 97(1)(b) PSD2 apply for pay-by-invoice when the payer's funds are covered by a credit line extended by a payment service provider?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4484 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 24/01/2019

Mandatory substitution approach according to Article 403 CRR when applying either the Financial Collateral Comprehensive Method (FCCM) or, in the case of securities financing transactions (SFTs) the Internal Model Method (IMM) or master netting agreements to calculate the exposure value.

Question 1: Has the mandatory substitution approach according to Article 403 CRR to be applied when an institution uses the FCCM? If yes, what is the amount that the institution shall assign to the protection provider/collateral issuer? Question 2: In the case of exposures arising from SFTs referred to in Article 401(2) second paragraph CRR, has the mandatory substitution approach according to Article 403 CRR to be applied when an institution applies master netting agreements, together with either the FCCM or IMM as referred to in Articles 220 CRR and 221 CRR? If yes, what is the exposure amount that shall be assigned to the collateral issuer? Question 3: Also regarding exposures arising from SFTs, has the mandatory substitution approach according to Article 403 CRR to be applied when an institution applies IMM as referred to in Section 6 of Chapter 6 of Title II of Part Three CRR? If yes, what is the exposure amount that shall be assigned to the collateral issuer? Question 4: Does an institution have to use a credit risk mitigation technique for large exposure purposes when it has used it for calculating own funds requirements, or can an institution renounce, for large exposure purposes, applying a credit risk mitigation that it has used for calculating own funds requirements? Question 5: Does an institution also have to apply the substitution approach, for large exposure purposes, in those cases where the collateral is not taken into account for calculating own funds requirements?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5496 | Topic: Large exposures | Date of submission: 11/09/2020

Irrevocability of a payment order initiated by a PISP

The EBA Opinion on the implementation of the RTS on SCA and CSC (EBA-Op-2018-04) contains a Table entitled “Main requirements for dedicated interfaces and API initiatives” and Row 9 refers to the possibility of “cancelling an initiated transaction in accordance with PSD2, including recurring transactions”. Please clarify that these requirements will not apply to single payment transactions initiated by Payment Initiation Service Providers (PISPs) for immediate execution?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2018_4095 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 10/07/2018

Treatment of CIUs in internal model for market risk – own funds requirement (add-on)

Has the add-on for specific risk for CIUs according to Art. 364 (2) lit. a) in any case to be calculated for CIUs which are included in an internal model for market risk using a different approach than those described in Art. 350 (1) or 350 (2) (e.g. based on the liquid price of the CIU)?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2018_4380 | Topic: Market risk | Date of submission: 20/11/2018

Definition of an electronic remote payment transaction

What are the demarcation criteria of the term „remote payment transaction“, which is an essential term in the RTS on SCA and CSC?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2019_4594 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 04/03/2019

Wholly or partially owned by a public authority requirement and bail-in

Article 40 of Directive 2014/59/EU (BRRD) requires that the bridge institution is wholly or partially owned by public authorities (including the resolution fund) and that it is controlled by the resolution authority. How is this ownership requirement compatible with Article 43(2)(b)(ii) BRRD?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2341 | Topic: Resolution tools and powers | Date of submission: 30/09/2015

Scope - Limited network exclusion

Is there a geographical limitation with regard to a limited network of service providers?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4604 | Topic: Authorisation and registration | Date of submission: 12/03/2019

More than one transaction from a single consumer initiated transaction

When a consumer elects to add an additional item to their purchase at the time of checkout (a cross sale) they are making two purchases from two different merchants in a single session. Is SCA required for both of these transactions? This would make the user experience very clumsy and awkward as the consumer would have to go through SCA twice in a row during a single checkout.

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4776 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 13/06/2019

SCA for staff assisted electronic channel

Please clarify where a customer is physically present and identified in branch, the strong customer authentication (SCA) requirements if that customer completes a Standing Order instruction (Setup, Amend or Cancel) or initiates a credit transfer through a staff assisted electronic channel (i.e. tablet device)?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2020_5124 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 13/02/2020

Rights over or in relation to assets, rights and liabilities transferred

According to Articles 38 (13), 40 (11) and 42 (12) of Directive 2014/59/EU (BRRD), parties whose assets, rights and liabilities are not transferred, shall not have any rights over or in relation to the assets, rights and liabilities that are transferred. What is the rationale of these provisions?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2338 | Topic: Resolution tools and powers | Date of submission: 30/09/2015

MREL subordination for smaller banks

Is the subordination requirement for the MREL of smaller banks (i.e. that are not G-SII or part of a G-SII, top tier banks nor banks subject to Article 45c(6)) subject to the limit of the prudential formula referred to in Article 45b(7)? Does the reference to 8% of total liabilities, including own funds, represent a cap, or does this provision include the possibility of full subordination for MREL? Are the conditions referred to in Articles 45b(7) and (8) applicable to smaller banks?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4983 | Topic: MREL | Date of submission: 04/11/2019

Authorisation of the purchaser of a (bridge) institution in another Member State

Article 38(11) of Directive 2014/59/EU (BRRD) (and similarly, Article 40(9) BRRD as to the bridge institution tool) provides that, for the purposes of the rights to provide services or to establish itself in another Member State, the purchaser or the bridge institution shall be considered to be a continuation of the institution under resolution and may exercise any such right that was exercised by the institution under resolution in respect to the rights, assets, and liabilities transferred?Does Article 38(11) BRRD exempt the purchaser or the bridge institution from obtaining the authorisation to operate in another Member State by way of derogation to Article 38(7) BRRD? 

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2015_2334 | Topic: Resolution tools and powers | Date of submission: 29/09/2015

Meaning of “rate of conversion that severely dilutes existing holdings of shares or other instruments of ownership”

What is the exact meaning of “rate of conversion that severely dilutes existing holdings of shares or other instruments of ownership” in Article 47(1) of Directive 2014/59/EU (BRRD)?

Legal act: Directive 2014/59/EU (BRRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2017_3212 | Topic: MREL | Date of submission: 07/03/2017