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Q&As refer 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.

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List of Q&A's

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

Interpretation of “group headed by the Union parent undertaking” in Article 7 (1)

Should “group headed by the Union parent undertaking” in Article 7 (1) of Directive 2014/59/EU (BRRD) be interpreted as the group subject to consolidated supervision pursuant to Articles 111 and 112 of Directive 2013/36/EU (CRD IV) headed by the Union parent undertaking?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2083
  • Topic: Recovery plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Assessment of group recovery plans

Should group recovery plans be assessed in the same way as recovery plans in Article 6 of Directive 2014/59/EU (BRRD)? Is the reference to Article 7 (1) contained in Article 6 (1) correct?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2082
  • Topic: Recovery plans
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Preparation and approval of recovery plans of institutions which are members of an IPS

Are institutions which are members of an IPS exempted from drafting their own recovery plans in case they are granted a waiver from “the requirements of Section 2”?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2080
  • Topic: Simplified obligations
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Meaning of “where relevant” in Article 4

Could you please clarify the meaning of the wording “where relevant” in Articles 4 (3) (4) and (8) 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_2079
  • Topic: Simplified obligations
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Designation of several authorities as resolution authority

Is it possible according to Article 3 (10) of Directive 2014/59/EU (BRRD) to make specified resolution authorities responsible for the resolution of particular groups or entities and/or to divide the responsibilities for certain stages of resolution amongst them?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2077
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Cooperation, collaboration and assistance of the competent authority to the resolution authority

How should those provisions of Directive 2014/59/EU (BRRD) (e.g Articles 6 (4); 10; 14; 17; 27 (2); and 32(1)) which entail that competent authorities need to cooperate, collaborate and assist with the resolution authority be reflected in national legislation in situations where both functions are carried out by the same entity?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2076
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Entity that formally is not a part of public administration as resolution authority

Is it possible under Directive 2014/59/EU (BRRD), in particular under Article 3 to designate as a resolution authority, an entity that is entitled to issue administrative decisions but formally is not a part of public administration?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2075
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Eligible Liabilities in the context of Articles 2(71) and 45(4)

Does the term "eligible liabilities" defined in Article 2(71) only cover these debt instruments which fulfil conditions laid down in Article 45(4), or does it relate to particular categories of liabilities in general?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2073
  • Topic: Other topics
  • Date of submission:

Third country resolution proceedings

How do “Third country resolution proceedings” as defined in Article 2 (1) (88) affect a failing EU institution when these are applied to a failing third country parent?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2072
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 24/07/2015