Response to consultation on Regulatory Technical Standards on resolution colleges
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When creating the resolution college at EU level, it will be important to acknowledge the existing CMG established under the FSB framework. For G-SIBs, resolution has to be coordinated at the CMG level and there should be clear flexibility to keep the CMG as the main decision-making body, with the “EU” resolution college as a subset. This would allow greater efficiency.
The interaction between the resolution college at EU level and third countries which are not members of the CMG is not clearly articulated in the RTS. The EBA should follow the FSB’s Draft Guidance on Cooperation and Information Sharing with Non-CMG Host Authorities (October 2014) when establishing the framework for third countries.
We welcome the requirement that the resolution college should take into account the timetables for other joint decisions. In the case of the group recovery plan, we believe it makes sense to encourage coordination within the resolution college regarding the input that resolution authorities should provide independently to the supervisory college (recital 13). However, it is important to ensure that this input is done within the timeframe established in the EBA’s RTS on the assessment of recovery plans.
When preparing the group resolution plan, the college is asked to look at whether the banking group has a Single Point of Entry (SPE) or a Multiple Point of Entry (MPE) strategy, according to Article 14 (1a). This seems to imply that SPE and MPE are mutually exclusive, which is not necessarily the case. A banking group with an SPE strategy might have to resolve a subsidiary separately in specific circumstances. Therefore, we would recommend deleting this reference and keep only: “discuss preliminary proposal on the resolution strategy for the group”.
Q2: Do you have any suggestions regarding elements of the various joint decisions in resolution planning and in cross-border resolution?
The first critical step in the establishment of the resolution college will be the mapping exercise. It would be helpful to clarify in the RTS the entities that will be in the scope. The EBA does not specify whether only regulated entities are in the scope, or whether services entities or off-balance sheet vehicles would also be taken into account.When creating the resolution college at EU level, it will be important to acknowledge the existing CMG established under the FSB framework. For G-SIBs, resolution has to be coordinated at the CMG level and there should be clear flexibility to keep the CMG as the main decision-making body, with the “EU” resolution college as a subset. This would allow greater efficiency.
The interaction between the resolution college at EU level and third countries which are not members of the CMG is not clearly articulated in the RTS. The EBA should follow the FSB’s Draft Guidance on Cooperation and Information Sharing with Non-CMG Host Authorities (October 2014) when establishing the framework for third countries.
We welcome the requirement that the resolution college should take into account the timetables for other joint decisions. In the case of the group recovery plan, we believe it makes sense to encourage coordination within the resolution college regarding the input that resolution authorities should provide independently to the supervisory college (recital 13). However, it is important to ensure that this input is done within the timeframe established in the EBA’s RTS on the assessment of recovery plans.
When preparing the group resolution plan, the college is asked to look at whether the banking group has a Single Point of Entry (SPE) or a Multiple Point of Entry (MPE) strategy, according to Article 14 (1a). This seems to imply that SPE and MPE are mutually exclusive, which is not necessarily the case. A banking group with an SPE strategy might have to resolve a subsidiary separately in specific circumstances. Therefore, we would recommend deleting this reference and keep only: “discuss preliminary proposal on the resolution strategy for the group”.