- Question ID
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2015_1794
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Early intervention
- Article
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27
- Paragraph
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1
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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1
- Type of submitter
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Competent authority
- Subject matter
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Meaning of "initial" recovery plan
- Question
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What does the reference to the ‘initial’ recovery plan’ in Article 27(1)(a) of Directive 2014/59/EU (BRRD) mean? Is it the first recovery plan or does it relate to subsequent recovery plans?
- Background on the question
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The reference to the ‘initial’ recovery plan’ in English means the first recovery plan that a firm provides. Firms are obliged to update the plan annually, and more frequently where there is a material change (Article 5(2) of the BRRD). How does the Commission expect Member States to implement the reference to the ‘initial plan’? If the Member State applies it literally, it would require the supervisor to consider the first plan even if it has long been superseded. The Member State assumes it would mean a reference to the current recovery plan.
- Submission date
- Final publishing date
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- Final answer
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The "initial" recovery plan refers to the current available version of the recovery plan, which can be either the recovery plan "as last amended" in case it has been updated already or the plan that has not been updated yet; that is the reason for the cross reference to Article 5(2) under Article 27(1)(a) of the BRRD.
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
- Status
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Final Q&A
- Answer prepared by
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Answer prepared by the European Commission because it is a matter of interpretation of Union law.
- Note to Q&A
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Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.
Disclaimer
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.