EBA · 2015_2076 Final Q&A

Cooperation, collaboration and assistance of the competent authority to the resolution authority

Regulation
Directive 2014/59/EU (BRRD)
Article
3, para. 4
Topic
Other topics
Submitted by
Competent authority
Submitted
2015-06-29
Answered
2015-07-24
Answer provided by
ESAs (EBA, ESMA, EIOPA)

Question

How should those provisions of Directive 2014/59/EU (BRRD) (e.g Articles 6 (4); 10; 14; 17; 27 (2); and 32(1)) which entail that competent authorities need to cooperate, collaborate and assist with the resolution authority be reflected in national legislation in situations where both functions are carried out by the same entity?

Background

In certain Member States the competent authority has been designated as the resolution authority. In such cases how should the relevant Articles of the Directive 2014/59/EU (BRRD) as outlined above be reflected in the national legislation transposing the BRRD.

Answer

Directive 2014/59/EU (BRRD) does not prescribe a specific treatment in such cases therefore the "manner" is open, i.e. law or administrative act, provided that the Member State is able to produce evidence that the authority is under such obligation and that the obligation is implemented. An appropriate solution could be to lay down a general obligation for the authority to ensure that the various functions / services cooperate and requesting the authority to lay down internal rules in that sense. 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.

Original source: European Banking Authority, Q&A ID 2015_2076

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

Similar Q&As

More Q&As on this topic

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

14-day free trial. No credit card required.