Article 49(5) of the Bank Resolution and Recovery Directive (BRRD) empowers the European Commission (the Commission) to adopt, following submission of draft standards by the European Banking Authority, and in accordance with Articles 10 to 14 of Regulation No (EU) 1093/2010, delegated acts specifying methodologies and principles on the valuation of liabilities arising from derivatives.
In accordance with Article 10(1) of Regulation No (EU) 1093/2010 establishing the EBA, the Commission shall decide within three months of receipt of the draft standards whether to endorse the drafts submitted. The Commission may also endorse the draft standards in part only, or with amendments, where the EU’s interests so require, having regard to the specific procedure laid down in those Articles.
The Commission has now adopted a Delegated Regulation supplementing the BRRD with regulatory technical standards (RTS) for methodologies and principles on the valuation of liabilities arising from derivatives.
The Delegated Regulation is subject to scrutiny by the Council of the EU and the European Parliament. If neither institution objects, the Delegated Regulation will enter into force 20 days after its publication in the Official Journal of the EU.
View Commission Delegated Regulation (EU) …/… of 23.5.2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms with regard to regulatory technical standards for methodologies and principles on the valuation of liabilities arising from derivatives, 23 May 2016