Authorisation of the bridge institution

The possibility to transfer shares to a bridge institution pursuant to Article 40 (1) (a) of Directive 2014/59/EU (BRRD) has been provided in order to allow for setting up a bridge holding company. The requirement to have authorisation under Directive 2013/36/EU (CRD IV) pursuant to Article 41 (1) is understood as requirement that applies only when the bridge institution is an institution that is subject to authorisation and does not apply to a holding company. 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.