The Association for Financial Markets in Europe (AFME) has published a model clauses package for the contractual recognition of bail-in under Article 55 of the Bank Recovery and Resolution Directive (BRRD).
The model clauses seek to support cross-border effectiveness of resolution and assist banks with complying with the requirements of Article 55 BRRD by providing model wording for inclusion in debt instruments and other contracts. The model clauses also include an updated version of the previous AFME model clause for the contractual recognition of bail-in of eligible debt instruments published in September 2015 reflecting the final regulatory technical standards made under Article 55 and also a clause for broader use in other contracts subject to the requirements.
Our previous blog entry on the PRA final rules and supervisory statement on contractual recognition of bail-in can be found here. Our briefing note on bail-in and contractual recognition provisions can be found here.