The Bank Recovery and Resolution Directive (BRRD) establishes an EU framework for the recovery and resolution of credit institutions, investment firms and related entities. In the BRRD framework, resolution authorities, after consulting with relevant competent authorities, will draw up resolution plans which provide for resolution actions which may be taken once an institution meets the conditions for resolution.
So that it may draw up a resolution plan the resolution authority needs the cooperation of the institution. However, institutions also provide information that is relevant for resolution planning to their competent authority. Therefore, in order to avoid duplication in the transmission of information the BRRD encourages competent authorities to cooperate with resolution authorities.
To complement this principle the BRRD also mandates the European Banking Authority (EBA) to draft implementing technical standards (draft ITS) to specify the procedures and minimum set of standards, forms and templates by which information may be provided for the purpose of resolution plans.
The EBA has now published a consultation paper in which it sets out these draft ITS. Article 2 of the draft ITS sets out a procedure that shall apply where resolution authorities require information about an institution in order to draw up a resolution plan. Under this procedure, the resolution authority will first request the information it needs for the purposes of drawing up a resolution plan from an institution’s competent authority. Where the competent authority has relevant information it will provide it to the resolution authority in a timely manner. However, where information is not available or is not in a format that satisfies the resolution authority’s needs, the resolution authority may directly ask the institution for the information. Where the information is included in the minimum set listed in the draft ITS, the institution will provide it to the resolution authority using the forms and templates set out in Annex I to XII of the draft ITS and according to the instructions laid down in Annex XIII of the draft ITS.
The minimum set of forms and templates provided in Annex I to XII of the draft ITS cover in particular the information listed in Annex B of the BRRD concerning the institution’s organisational structure, governance and management, critical functions and core business lines, critical counterparties, structure of liabilities, funding sources, off-balance sheet, payment systems, information systems, interconnectedness, authorities and legal framework.
The deadline for comments on the consultation paper is 14 April 2015.
View Consultation Paper: Draft implementing technical standards on procedures, forms and templates for the provision of information for resolution plans under Article 11(3) of Directive 2014/59/EU of the European Parliament and the Council, 14 January 2015