EBA · 2015_2313 Final Q&A

Referencing in Article 41

Regulation
Directive 2014/59/EU (BRRD)
Article
41, para. 2
Topic
Resolution tools and powers
Submitted by
Competent authority
Submitted
2015-09-22
Answered
2015-10-02
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

Should the reference made to paragraph 4 with regard to “the period” mentioned in Article 41 (2) of Directive 2014/59/EU (BRRD) not be towards paragraph 5?

Background

Article 41 (2) of Directive 2014/59/EU (BRRD) states that “Subject to any restrictions imposed in accordance with Union or national competition rules, the management of the bridge institution shall operate the bridge institution with a view to maintaining access to critical functions and selling the institution or entity referred to in point (b), (c) or (d) of Article 1(1), its assets, rights or liabilities, to one or more private sector purchasers when conditions are appropriate and within the period specified in paragraph 4 of this Article or, where applicable, paragraph 6 of this Article.” However, paragraph 4 does not mention any period, but paragraph 5 does. Is meant to refer to paragraph 5?

Answer

Yes, this is a mistake in editing. The correct reference must be to paragraph 5 or, where applicable, paragraph 6. 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_2313

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.

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