On 16 September 2021, the Single Resolution Board (SRB) published an update to information on its approach to prior permissions for eligible liabilities.
Prior to calling, redeeming, repaying or repurchasing eligible liabilities instruments before their contractual maturity, institutions are required to obtain the authorisation of the resolution authority in accordance with Article 77(2) of the Capital Requirements Regulation (CRR), as well as further detailed in Article 78a CRR. There are two categories of permissions: ad hoc permission and general prior permission (GPP). On 26 May 2021, the final report on the draft regulatory technical standards (RTS) on own funds and eligible liabilities was published on the European Banking Authority (EBA) website and submitted to the European Commission for endorsement as a Delegated Regulation. The draft RTS are mandated by Article 78a(3) CRR and specify the procedures for granting ad hoc permission and GPP, including the time limits and information requirements.
The update complements the guidance the SRB published on 28 July 2021 and is designed to help EU institutions when applying to the SRB for permission in line with the requirements set out in the draft RTS. It summarises and explains the procedures that institutions should follow when seeking the SRB’s permission to call, redeem, repay or repurchase eligible liabilities instruments before their contractual maturity.