Question ID
2019_4642
Legal act
Directive 2014/59/EU (BRRD)
Topic
Resolution plans
Article
12
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Resolution authority
Subject matter
Resolution plans for subsidiaries where no resolution college has been established yet
Question

Is the national resolution authority empowered to draft an individual resolution plan, referred to in Article 10 BRRD, for an institution which is part of a (third country) group subject to consolidated supervision, where the European group-level resolution authority (GLRA) has not established the European resolution college?

Background on the question

In line with Article 12 BRRD subsidiaries that are part of the group should be covered by group resolution plan adopted in the form of joint decision. To avoid overlaps the regulator included in Article 10 restriction that obligation for NRAs to draw up individual resolution plans does not refer to the abovementioned subsidiaries. Simultaneously BRRD in Articles 88 and 89 stipulates that group resolution plans are subject to joint decision which is taken within resolution college or – in case of banking groups where the ultimate parent undertaking is registered in a third country – European resolution college. In some cases process of establishing European resolution colleges is delayed and consequently for some institutions there have been drafted no resolution plans so far. As one of the elements of resolution planning process is determination of MREL lack of adopted resolution plan not only puts into question possibility of carrying out resolution process in efficient way but also breaches level playing field principle.

Submission date
Rejected publishing date
Rationale for rejection

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Status
Rejected question