On 24 September 2015, the Association for Financial Markets in Europe (AFME) published a “Model clause for the contractual recognition of bail-in under Article 55 of the BRRD” (a “Write-Down Clause”).  The model clause is designed for use by UK issuers of New York law governed debt securities. In its “Draft Regulatory Technical Standards on […]

With only 161 days until the creditor writedown portion of the BRRD comes into force, it is imperative that both banks and their creditors have complete understanding of the potential post- 1 January 2016 consequences. However, Article 55(3) BRRD is not a straight road leading to clarity; the long list of overlapping exceptions to bail […]

Introduction On 3 July 2015 the European Banking Authority (EBA) published final “Draft Regulatory Technical Standards on the contractual recognition of write-down and conversion powers under Article 55(3) of Directive 2014/59/EU” (the BRRD). The requirement to include Write-Down Clauses In order to guard against the possibility that a third country court may not recognise the […]

Introduction On 23 June 2015, the Monetary Authority of Singapore (MAS) published its “Proposed Enhancements to Resolution Regime for Financial Institutions in Singapore”.  With the consultation period closing on 22 July 2015, the consultation paper seeks rapid feedback on a number of issues affecting firms in Singapore which have been notified as being systemically important […]

The FSB has released a consultation paper on the cross-border recognition of resolution action. The FSB TBTF report previously identified cross-border legal uncertainty as one of the main stumbling-blocks to the effective resolution of a SIFI subject to multiple jurisdictions. Key Attribute (KA) 7.5 mandates the mutual cross-border recognition of resolution authority and action; existing […]

On 8 April 2014, just days before its final plenary session (scheduled for 14-17 April) the EU Parliament has published a revised text of the Bank Recovery and Resolution Directive (BRRD). The text appears to confirm the Parliament’s broad support of the requests made by various Member States for clarity that the extension of liquidity […]

The FT is reporting that a stand-off has developed over the EU bank recovery and resolution directive. The issue relates to the degree of support that a state can provide to an ailing bank before triggering the bail-in provisions of the directive.

On 13 March 2014, HM Treasury published a consultation document on the implementation of bail-in pursuant to the Financial Services (Banking Reform) Act 2013. The consultation is open for comment until 7 May 2013 and seeks comments on three draft statutory instruments: The Building Societies (Bail-in) Order: which facilitates the exercise of bail-in in relation […]

On 6 December 2013, the Presidency of the EU Council published its latest compromise proposal (17410/13) with respect to the single resolution mechanism (SRM). Changes to the previous compromise text (17055/13) are highlighted in bold and underlined. The Council has also published a Presidency report (17411/13)  dated 6 December 2013 detailing key outstanding issues relating to the SRM […]