The European Banking Authority (EBA) launched today a public consultation on draft Regulatory Technical Standards (RTS) on notifications and notice of suspension. These RTS have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD) and aim at harmonising the process and content of notifications and notice of suspension arising from a determination that a firm is failing or likely to fail and the subsequent resolution actions. The consultation runs until 20 March 2015.
The BRRD identifies three notification scenarios relating to a determination that an institution is failing or likely to fail. In the first instance, it is the ongoing responsibility of the management body to identify and determine whether the institution is failing or likely to fail. Following this determination, the management body is required to notify the Competent Authority. On receipt of such a notification, the Competent Authority is obliged to communicate this information to the Resolution Authority. Finally, the BRRD envisages that either the Competent or Resolution authority can independently initiate an assessment of failing or likely to fail. These RTS specify the process and content of notifications in each of the above scenarios.
The RTS also address the process and content of a notice summarising the effects of resolution action and in particular the effects on retail customers.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 20 March 2015.
A public hearing will take place at the EBA premises on 17 February 2015 from 14:00 to 15:00 UK time. All contributions received will be published following the close of the consultation, unless requested otherwise.
The draft RTS have been prepared according to Article 82(3) of the BRRD, which mandates the EBA to specify the procedures and content relating to the notification process.