19 December 2014

EBA consults on procedures and contents of notifications under the recovery and resolution regime

These RTS aim at harmonising the process and content of notifications and notice of suspension arising from a determination that a firm is failing, or likely to fail, and the subsequent resolution actions.

The BRRD identifies three notification scenarios relating to a determination that an institution is failing or likely to fail. In the first instance, it is the ongoing responsibility of the management body to identify and determine whether the institution is failing or likely to fail. Following this determination, the management body is required to notify the Competent Authority. On receipt of such a notification, the Competent Authority is obliged to communicate this information to the Resolution Authority. Finally, the BRRD envisages that either the Competent or Resolution authority can independently initiate an assessment of failing or likely to fail. These RTS specify the process and content of notifications in each of the above scenarios.

The RTS also address the process and content of a notice summarising the effects of resolution action and in particular the effects on retail customers.

Comments to this consultation can be sent to the EBA by 20 March 2015. A public hearing will take place at the EBA premises on 17 February 2015 from 14:00 to 15:00 UK time.

Press release

Consultation paper

© EBA