On 5 July 2024, the European Securities and Markets Authority (ESMA) published a Final Report on revised Guidelines on Written Arrangements and Procedures for the Functioning of Resolution Colleges (the Guidelines).

Article 4(1) of the EU Regulation on central counterparty recovery and resolution requires that the resolution authority establishes, manages and chairs a resolution college to carry out the drawing up of resolution plans, the assessment of resolvability and to address or remove impediments to resolvability, as well as ensures cooperation and coordination with college members and, where appropriate, cooperates with third-country competent authorities and resolution authorities.

The Guidelines were originally published on 23 June 2023 with the aim of assisting in the creation of resolution colleges by establishing a common basis for the written arrangements in the form of a template. In certain cases, resolution authorities invited third country authorities to join the resolution college, and thus sign the written arrangement. During this process, some third country authorities raised issues with certain clauses of the written arrangements, which would not allow them to participate in resolution colleges as college observers. Therefore, the purpose of the amendments is to address this issue.

In the Final Report the ESMA covers the rationale for revising the Guidelines including a template for a standard written arrangement and provides more information on the main changes. The revised Guidelines are set out in Annex II.

The revised Guidelines apply after their publication by the ESMA on its website in the official languages of the EU. Member State competent authorities must inform the ESMA of whether they (i) comply, (ii) do not comply but intend to comply, or (iii) do not comply and do not intend to comply with the revised Guidelines. In case of non-compliance, Member State competent authorities must state their reasons for non-compliance, within two months from the date of publication of the revised Guidelines on ESMA’s website in all EU official languages.