On July 8, 2016, the Commission Delegated Regulation ((EU) 2016/1075) supplementing the Bank Recovery and Resolution Directive (2014/59/EU) ("BRRD") on recovery and resolution planning, was published in the Official Journal of the EU ("OJ"). The Delegated Regulation details regulatory technical standards ("RTS') outlining the following:
- the content of recovery plans, resolution plans and group resolution plans;
- the minimum criteria that the competent authority is to assess regarding recovery plans and group recovery plans;
- the conditions for group financial support;
- the requirements for independent valuers;
- the contractual recognition of write-down and conversion powers; and
- the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges.
It is hoped that the above RTS will be included in a single Delegated Regulation to ensure coherence between the provisions dealing with the resolution framework laid down in the BRRD.
The Delegated Regulation was adopted by the Commission on March 23, 2016. It comes into force twenty days after publication in the OJ and as such on July 28, 2016.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.