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Breadcrumb

  1. Home
  2. Single Rulebook Q&A
  3. 2017_3123 Applicability of Directive 2001/24/EC by virtue of Article 117 para 1 subpara 4 of Directive 2014/59/EU
Question ID
2017_3123
Legal act
Directive 2014/59/EU (BRRD)
Topic
Cross-border resolution
Article
117
Paragraph
1
Subparagraph
4
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Law firm
Subject matter
Applicability of Directive 2001/24/EC by virtue of Article 117 para 1 subpara 4 of Directive 2014/59/EU
Question

Whether Article 117 para 1 subpara 4 of Directive 2014/59/EU has amended Article 1 Directive 2001/24/EC with the effect that Directive 2001/24/EC is applicable to a Union branch (branch located in a Member State of a third-country institution) that was subject to resolution measures under Directive 2014/59/EU.

Background on the question

Article 1 of Directive 2001/24/EC point 2 provides that its provisions concerning the branches of a credit institution having a head office outside the Community shall apply only where that institution has branches in at least two Member States of the Community. Article 117 para 1 subpara 4 has amended Article 1 of Directive 2001/24/EC by adding a point 4 to Article 1 of Directive 2001/24/EC which provides the following: “In the event of application of the resolution tools and exercise of the resolution powers provided for in Directive 2014/59/EU of the European Parliament and of the Council, this Directive shall also apply to the financial institutions, firms and parent undertakings falling within the scope of Directive 2014/59/EU.” According to Article 1 para 1 (e) of Directive 2014/59/EU “branches of institutions that are established outside the Union”, are subject to Directive 2014/59/EU regardless of the number of Member States in which such institution has a branch. As a result point 2 and point 4 of Article 1 of Directive 2001/24/EC are somewhat contradictory. It is therefore not undoubtedly clear that Article 117 para 1 subpara 4 of Directive 2014/59/EU has extended the scope of application of Directive 2001/24/EC to a branch of a third-country institution which is the only branch in the EU and which was subject to resolution measures under Directive 2014/59/EU.

Submission date
24/01/2017
Rejected publishing date
11/02/2022
Rationale for rejection

Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.

If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.

For further information please refer to the press release and the updated Q&A page.

Status
Rejected question

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