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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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022

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 | Date of publication: 21/01/2022