Scope of bail-in tool regarding client assets or client money held on behalf of UCITS

Client assets or client money held on behalf of UCITS are not “owned” by the institution, and, therefore, they cannot be bailed in provided that such a client is protected under the applicable insolvency law. (see also Q&A 3023 ) The purpose of Article 44(2)(c) BRRD is to leave no scope for doubt and it needs to be transposed. 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.