Question ID
2018_3703
Legal act
Directive 2014/59/EU (BRRD)
Topic
Cross-border resolution
Article
96
Paragraph
3
Subparagraph
b
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Competent authority
Subject matter
Reference to Chapter III in Article 96(3)(b)
Question

Is the reference to Chapter III in Article 96(3)(b) correct?

Background on the question

Article 96(3) of Directive 2014/59/EU (BRRD) stated that “Where a resolution authority takes an independent action in relation to a Union branch, it shall have regard to the resolution objectives and take the action in accordance with the following principles and requirements, insofar as they are relevant: (a) the principles set out in Article 34; (b) the requirements relating to the application of the resolution tools in Chapter III of Title IV.”

The reference to Chapter III seems does not seem to be correct since resolution tools and their general principles are explained under Chapter IV. Could you please confirm it?

Submission date
Final publishing date
Final answer

The cross referencing to Chapter III in Article 96(3)(b) is mistaken. The reference should be to Chapter IV.

Disclaimer:

This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Status
Final Q&A
Answer prepared by
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A

Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.