Guarantee for the purpose of the waiver from internal MREL requirements

Point (d) of Article 45f(3) BRRD requires that the resolution entity ‘declare’, with the consent of the competent authority, that it guarantees the commitments entered into by the subsidiary. Point (d) of Article 45f(4) provides for a corresponding requirement in case of parent undertakings and subsidiaries established in the same Member State and being part of the same resolution group. Those provisions do not specify the type of commitments entered into by the subsidiary that need to be covered by the declaration of the resolution entity (or the parent undertaking) in order to fulfill the condition under point (d). The provisions leave open the nature and content of the declaration of the resolution entity (or the parent undertaking) and the associated guarantee(s). Please refer to the response to Q&A 5581 for further guidance regarding the assessment of ‘commitments’ referred to in the above provisions.   Disclaimer:   The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.