Consultation on draft ITS on simplified obligations

The European Banking Authority (EBA) launched today a consultation on its draft Implementing Technical Standards (ITS) on the uniform formats, templates and definitions for the identification and transmission of information by competent authorities and resolution authorities to the EBA. The proposed ITS are launched for consultation along with the Guidelines on simplified obligations and are part of the EBA’s work to promote convergence of practices between competent and resolution authorities across the EU. These consultations run until 3 January 2015.

 

According to the BRRD, when determining the nature of the obligations imposed in relation to recovery planning, resolution planning and resolvability assessments for institutions, competent and resolution authorities across the EU should take into consideration the impact that the failure and subsequent winding up of an institution under normal insolvency proceedings could have on financial markets, other institutions, funding conditions, as well as on the wider economy. For this purpose, the BRRD details a series of criteria against which institutions should be assessed: the nature of the institution’s business, its shareholding structure, its legal form, its risk profile, size and legal status and its interconnectedness to other institutions or to the financial system in general.

 

The draft ITS launched for public consultation along with the Guidelines include a number of templates and definitions to be used by competent and resolution authorities for the identification and transmission of information to the EBA about the way they have assessed institutions against the criteria set out in the BRRD, including the mandatory indicators, and the nature of the simplified obligations applied to eligible institutions. These templates establish a common framework for reporting which will enable the EBA to identify accurately any divergences in the approach of different EU authorities and subsequently report on this to the European Parliament, the Council and the Commission. This report is required to be produced by 31 December 2017.

Comments to these consultations can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 3 January 2015.

 

All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will then take place at the EBA premises on 25 November 2014 from 10am to 12.30 pm UK time.

The proposed draft ITS are based on Article 4(11) of the BRRD, which requires the EBA to develop draft implementing technical standards to specify uniform formats, templates and definitions for the identification and transmission of information by competent and resolution authorities to the EBA for the purposes of informing its report, pursuant to Article 4(7) of the BRRD, to the European Parliament, to the Council and to the Commission on the implementation of relevant provisions of Article 4 of the BRRD. The EBA shall identify in its report any divergences regarding the implementation of these provisions.