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Could you please clarify the interaction between Recital 39 and the last sentence of Article 29 (2) of Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2109
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Early intervention power to remove senior management

Can the Early intervention power to remove senior management be framed in national legislation so that it can be applied even if not all other Early intervention measures have been exhausted?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2108
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Consistency between Early intervention measures in BRRD and CRD IV

How can consistency between the Early intervention measures as listed in Article 27 of Directive 2014/59/EU (BRRD) and those already envisaged in Article 104 of Directive 2013/36/EU (CRD IV) be ensured, in particular taking into account that the triggers for these measures are partially different?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2107
  • Topic: Interactions with the CRR / CRD IV and the BRRD
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Provision of IGFS under Article 23

Would a prohibition on the institution or the holding company receiving financial support under an IGFS agreement that does not meet the conditions in Article 23 of Directive 2014/59/EU (BRRD) be a satisfactory implementation of that Article?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2106
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Authorisation to breach large exposures requirements in the context of IGFS

How do national legislators transpose Article 23 (1) (h) of Directive 2014/59/EU (BRRD) in accordance with the CRR and the CRD IV?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2105
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Changes to financial support agreements

What is the correct course of action in case of changes to financial support agreements in situations where the competent authority has already authorised a group financial support agreement and transmitted it to resolution authorities in accordance with Article 22 Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2104
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 28/01/2022

Institution or entity in Article 19 (3) (a)

Can you please clarify if the provision Article 19 (3) (a) refers to the institution or to the entity?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2103
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Intra-Group Financial Support to subsidiaries in third countries

In case participation in Intra-Group Financial Support agreements by ”subsidiaries in third countries” is already allowed in national law, does Article 19 (1) of Directive 2014/59/EU (BRRD) still have be explicitly implemented?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2102
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 24/07/2015

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:
  • Published as final Q&A: 21/01/2022

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:
  • Published as final Q&A: 21/01/2022

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:
  • Published as final Q&A: 21/01/2022

Contents of group resolution plans

Are the contents of group resolution plans listed in Article 12 (3) of Directive 2014/59/EU (BRRD) to be considered in addition to the contents of solo resolution plans set out in Article 10 (7) of the same Directive?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2098
  • Topic: Resolution plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Inclusion of mixed-activity holding companies into group resolution plans

Under which conditions should group resolution plans capture mixed-activity holding companies?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2097
  • Topic: Resolution plans
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Usage of Multiple Point of Entry (MPE) and Single Point of Entry (SPE) in resolution plans (scenarios)

Should the suggested resolution plans assume both the possibility of usage of Multiple Point of Entry (MPE) and Single Point of Entry (SPE) strategies depending on different scenarios and causes of failure or should they clearly identify a preferred strategy and elaborate only on the different resolution tools within this strategy?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2016/1075 - DR on the content of recovery and resolution plans, financial support, independent valuers, contractual recognition of write down and conversion powers, notices of suspension and resolution colleges
  • ID: 2015_2096
  • Topic: Resolution plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Predetermined amount for market making with partially grandfathered or amortised instruments

An institution has asked for advance permission according to Article 78(1) last subparagraph Regulation (EU) No 575/2013 (CRR) to carry out repurchases of its own funds instruments for market making purposes. It intends to repurchase up to 3% of the nominal amount of these instruments. Some of these instruments are partially phased-out ('grandfathered' instruments) or already partially amortised. 1. What is in this case the predetermined amount for the limits in Article 78(1) last subparagraph CRR which is, according to Q&A 2014_1352 [as originally published on 8 July 2014] , required to be deducted pursuant to Article 28(2) of Delegated Regulation (EU) No 241/2014 from the moment the authorisation is granted?(a) 3% of the nominal amount of the instruments (i.e. including phased-out/amortised amounts), or(b) solely 3% of the amount still qualified for own funds (i.e. excluding phased-out/amortised amounts) 2. Do in this case the amounts of the relevant issuance and of total outstanding Additional Tier 1 instruments or Tier 2 instruments refer to(a) the full nominal amount (i.e. including phased-out/amortised amounts), or(b) solely the amount still qualified for own funds (i.e. excluding phased-out/amortised amounts)? 3. If solely the amount still qualified for own funds is considered for the predetermined amount or the limits, what is the maximum amount that the institution can repurchase?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2015_2095
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 05/02/2016

Predetermined amount in case of applications for redemptions, reductions and repurchases by mutuals, cooperative societies, savings institutions or similar institutions for the purposes of Article 77 CRR

Article 32(2) of Commission Delegated Regulation (EU) No 241/2014 (RTS on own funds) states: “Competent authorities may give their permission in advance to an action listed in Article 77 of Regulation (EU) No 575/2013 (CRR) for a certain predetermined amount to be redeemed, net of the amount of the subscription of new paid in Common Equity Tier 1 instruments during a period up to one year. That predetermined amount may go up to 2 % of Common Equity Tier 1 capital […]”. 1. Which of the following interpretations is correct? (1) Once permission is given for a certain predetermined amount, any subsequent subscription of new paid-in CET1 instruments during a period up to one year from date of permission increases automatically the total amount that is permitted to be redeemed (i.e. the maximum redemption amount that can be permitted in advance is 2% + x, for which x increases with any amount of new paid-in CET1 instrument additionally subscribed within one year). (2) In addition to the predetermined amount, the advance permission covers solely the amount of subscriptions during the period of one year that are already expected at the moment the permission is granted, i.e. it solely extends the predetermined amount by a fixed amount for the issuances already planned at the moment the permission is granted. (3) The advance permission for redeeming the predetermined amount does not cover redemption of new paid-in Common Equity Tier 1 instruments during a period up to one year. 2. Could it be that, because of an editorial oversight, a comma is missing in the first sentence of Article 32(2) RTS on own funds, before "during a period up to one year"? Setting the comma would consistently restrict not only the recognition of new subscriptions but already the advance permission for redemption to the same period of one year.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2015_2094
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 05/02/2016

Clarification on Article 8 (6) of Regulation (EU) 806/2014 (SRM)

Should the reference to paragraph 9 in Article 8(6) of Regulation (EU) 806/2014 (SRM) be understood as limited to the summary of the key elements of the resolution plan?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2093
  • Topic: Resolution plans
  • Date of submission:

Group recovery plans with regard to non-EU subsidiaries

Does the requirement to draw up a group recovery plan as established in Article 7 (1) of Directive 2014/59/EU (BRRD) also cover non-EU subsidiaries?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2092
  • Topic: Recovery plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Joint control (by more than one Union parent undertaking) over a subsidiary

Into which group recovery plan a subsidiary which is jointly controlled by more than one Union parent undertaking should be included?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2091
  • Topic: Recovery plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Large Exposures Reporting

We are seeking clarification on how exposures to Central counterparties are to be classified for large exposures reporting. We are unclear whether these counterparties are to be reported as unregulated financial entities and reported in LE4 or other and therefore only reported in LE1 and LE2. We have exposure to the London Clearing House which is a recognised clearing house, supervised by the Bank of England.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2086
  • Topic: Supervisory reporting - Large Exposures
  • Date of submission:
  • Published as final Q&A: 13/12/2019