EBA · 2015_2431 Rejected question

Reference to paragraph 8 in Article 41 (9)

Regulation
Directive 2014/59/EU (BRRD)
Article
41, para. 9
Topic
Resolution tools and powers
Submitted by
Competent authority
Submitted
2015-10-20
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Question

To which obligation under paragraph 8 is Article 41 (9) of Directive 2014/59/EU (BRRD) referring to (the one provided under the first or the second paragraph? If it were the case that Article 41 (9) provides that when a bridge institution is used for the purpose of transferring assets and liabilities of more than one institution under resolution the insolvency proceedings shall refer to the assets and liabilities transferred from each of the institutions under resolution and not to the bridge institution itself, what does that really mean?

Background

Article 41 (9) of the BRRD (Operation of a bridge institution) provides that “Where a bridge institution is used for the purpose of transferring assets and liabilities of more than one institution under resolution the obligation referred to in paragraph 8 shall refer to the assets and liabilities transferred from each of the institutions under resolution and not to the bridge institution itself”.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2015_2431

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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