Article 71 of the Bank Recovery and Resolution Directive (BRRD) empowers the European Commission to adopt, following submission of draft regulatory technical standards (RTS) by the European Banking Authority (EBA), delegated acts specifying the methodology for assessing the value of assets and liabilities of institutions or entities.
The EBA published a consultation paper covering the draft RTS on 6 March 2015. The consultation closed on 6 June 2015. The EBA subsequently submitted to the Commission final draft RTS.
The Commission has now adopted the draft RTS which specifies: (i) a minimum set of the information on financial contracts that should be contained in the detailed records; and (ii) the circumstances in which the requirement should be imposed. The RTS specifies that an institution or relevant entity shall be required to maintain detailed records of financial contracts where, pursuant to the applicable resolution plan or the group resolution plan, it is foreseen that resolution actions would be applied to the institution or entity concerned should the relevant conditions for resolution be satisfied.
In accordance with the mandate under Article 71(8) of the BRRD, it is proposed that the RTS prescribe only a minimum set (rather than an exhaustive list) of information on financial contracts that should be contained in the detailed records.
The minimum list of information on financial contracts provided in the Annex to the RTS could also serve as a basis for the Member State competent authorities and resolution authorities when exercising their discretion to impose a requirement to keep detailed records of financial contracts under Article 5(8) (recovery plans) and Article 10(8) (resolution plans) of the BRRD.
