List of Q&As

Sequence of bail-in and write down of capital

Are Articles 48 and 60 of Directive 2014/59/EU (BRRD) as well as Article 21 of Regulation (EU) No 806/2014 (SRM) conflicting with Articles 47 BRRD?

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

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

ID: 2017_3210 | Topic: MREL | Date of submission: 07/03/2017

Reimbursement of resolution expenses via sale of the asset management vehicle

Is it possible to implement a power in national legislation to pay the resolution expenses out of the proceeds of the sale of the asset management vehicle?

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

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

ID: 2015_2333 | Topic: Resolution tools and powers | Date of submission: 29/09/2015

Responsibility to pay expenses

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?

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

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

ID: 2015_2332 | Topic: Resolution tools and powers | Date of submission: 29/09/2015

Particular wording used in Articles 45h(5)

Is the meaning of the wording used in Articles 45h(5), second subparagraph of Directive 2014/59/EU (BRRD) ("the resolution authorities responsible for subsidiaries on an individual basis") the same as the wording "resolution authorities of the subsidiaries" used in other articles of BRRD?

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

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

ID: 2017_3208 | Topic: MREL | Date of submission: 07/03/2017

Winding up or liquidation of residual entity

Does the residual entity have to be always liquidated or wound up in accordance with Article 37(6) of Directive 2014/59/EU (BRRD)? Does this provision impose a mandatory obligation?

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

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

ID: 2015_2331 | Topic: Resolution tools and powers | Date of submission: 29/09/2015

Instruments representing interests in shares or other instruments of ownership

Do separately transferable rights fall under the definition of instruments of ownership as defined in Article 2(1)(61) of Directive 2014/59/EU (BRRD)?

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

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

ID: 2016_2717 | Topic: Other topics | Date of submission: 21/04/2016

Transfer of assets, rights and liabilities to the bridge institution / asset management vehicle

Why do Articles 40(11) and 42(12) of Directive 2014/59/EU (BRRD) explicitly exclude the liability of, respectively, the bridge institution’s and asset management vehicle’s management body or senior management vis-à-vis shareholders, creditors of the institution under resolution and other third parties whose assets, rights or liabilities are not transferred, whilst such exclusion is not provided for in Article 38(13) BRRD, when the resolution tool applied is the sale of assets?

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

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

ID: 2015_2316 | Topic: Resolution tools and powers | Date of submission: 22/09/2015

Clarification of “access to critical functions”

How should “access to critical functions” in Article 41 (2) of Directive 2014/59/EU (BRRD) be interpreted?

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

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

ID: 2015_2312 | Topic: Resolution tools and powers | Date of submission: 22/09/2015

Branches of institutions that are established outside the Union

Does the notion of “branches of institutions that are established outside the Union” according to Article 1(1)(e) of Directive 2014/59/EU (BRRD) refer to Union branches of third-country institutions?

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

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

ID: 2016_2578 | Topic: Other topics | Date of submission: 20/01/2016

MREL regarding liabilities governed by the law of a third-country

What are the obligations of an institution regarding liabilities governed by the law of a third-country and how are the requirements of Article 55 of Directive 2014/59/EU (BRRD) assessed? Should the competent authority or the resolution authority be in charge of gathering and assessing the evidence?

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

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

ID: 2015_2437 | Topic: MREL | Date of submission: 20/10/2015

Winding up of a bridge institution

With regard to the operation of the bridge institution as set out in Article 41 of Directive 2014/59/EU (BRRD), should a bridge institution be wound up even if it is not insolvent?

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

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

ID: 2015_2311 | Topic: Resolution tools and powers | Date of submission: 22/09/2015

Determination made by competent authority

Must the “determination made by competent authority”, mentioned in Article 32(1)(a) of the Directive 2014/59/EU (BRRD), be enshrined in a formal decision of the competent authority?

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

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

ID: 2015_2177 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015

Liability in the context of special management

In the case of special management, is the resolution authority liable for the acts of the special manager that the former had appointed and / or is the appointed special manager directly liable for their acts?

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

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

ID: 2015_2184 | Topic: Special management | Date of submission: 29/07/2015

Declaration of insolvency / bankruptcy

When the entity is failing or likely to fail and the public interest condition referred to in Directive 2014/59/EU (BRRD) is not fulfilled, who is supposed to take initiative for the purpose of the entity’s bankruptcy motion? How do the determination under Article 82(2) BRRD and the assessment of resolvability under Articles 15 and 16 BRRD relate to each other?

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

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

ID: 2015_2176 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015

Determination the failure of an institution

If, when performing the valuation under Article 36 of Directive 2014/59/EU (BRRD), the resolution authority finds that the conditions for resolution or for the write down or conversion of capital instruments and eligible liabilities in accordance with Article 59 are not met, can it ‘reverse’ the competent authority’s determination that the institution is failing or likely to fail?

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

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

ID: 2015_2174 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015

Clarification on formal decision

Should the determination to be made by the resolution authority under Articles 32(1), 32a and 33 of Directive 2014/59/EU (BRRD) on whether the conditions for resolution are met be enshrined in a formal decision? If so, should the latter be a separate decision from the decision on the actions to take?

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

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

ID: 2015_2175 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015

Prohibition for institutions to enter into agreements with third country counterparties

Can Article 17 of Directive 2014/59/EU (BRRD) be considered a sufficient basis for supervisors to prohibit institutions to enter into agreements with third country counterparties which do not accept having cross border contractual recognition language in their contracts as regards bail-in and stays on early termination rights?

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

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

ID: 2015_2101 | Topic: Resolution plans | Date of submission: 06/07/2015

Stating in law that banks’ activities are always in the public interest

Is it compliant with Directive 2014/59/EU (BRRD) if the national transposition measure provides that it is always in the public interest to take resolution action in relation to all credit institutions?

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

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

ID: 2015_2173 | Topic: Resolution objectives and triggers | Date of submission: 28/07/2015

Clarification on the scope of application to address or remove impediments to resolvability

Does the procedure for addressing or removing impediments to resolvability in Article 17 of Directive 2014/59/EU (BRRD) apply on an individual basis only or on a group basis as well?

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

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

ID: 2015_2100 | Topic: Resolution plans | Date of submission: 06/07/2015

Suspension of resolution plan updates

How do Articles 15(3) and 17(2) of Directive 2014/59/EU (BRRD) interact with each other?

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

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

ID: 2015_2099 | Topic: Resolution plans | Date of submission: 06/07/2015