Applicability of Directive 2001/24/EC by virtue of Article 117 para 1 subpara 4 of Directive 2014/59/EU

Whether Article 117 para 1 subpara 4 of Directive 2014/59/EU has amended Article 1 Directive 2001/24/EC with the effect that Directive 2001/24/EC is applicable to a Union branch (branch located in a Member State of a third-country institution) that was subject to resolution measures under Directive 2014/59/EU.

Article 1 of Directive 2001/24/EC point 2 provides that its provisions concerning the branches of a credit institution having a head office outside the Community shall apply only where that institution has branches in at least two Member States of the Community. Article 117 para 1 subpara 4 has amended Article 1 of Directive 2001/24/EC by adding a point 4 to Article 1 of Directive 2001/24/EC which provides the following: “In the event of application of the resolution tools and exercise of the resolution powers provided for in Directive 2014/59/EU of the European Parliament and of the Council, this Directive shall also apply to the financial institutions, firms and parent undertakings falling within the scope of Directive 2014/59/EU.” According to Article 1 para 1 (e) of Directive 2014/59/EU “branches of institutions that are established outside the Union”, are subject to Directive 2014/59/EU regardless of the number of Member States in which such institution has a branch. As a result point 2 and point 4 of Article 1 of Directive 2001/24/EC are somewhat contradictory. It is therefore not undoubtedly clear that Article 117 para 1 subpara 4 of Directive 2014/59/EU has extended the scope of application of Directive 2001/24/EC to a branch of a third-country institution which is the only branch in the EU and which was subject to resolution measures under Directive 2014/59/EU.