Introduction Article 55 of the BRRD requires Member States to ensure that in-scope institutions include a contractual term by which the creditor or party to the agreement creating a liability recognises that the liability in question may be subject to the write-down and conversion powers within the BRRD and agrees to be bound by any […]

The EC yesterday adopted a Delegated Regulation supplementing the BRRD. The regulation contains a number of RTS in the following areas: Content of recovery and resolution plans. EBA final drafts published in July 2014 and December 2014 Article 6(8). Principles and minimum criteria for assessment of recovery and resolution plans. EBA final draft published in […]

Introduction On 17 December 2015, the EBA published its “Draft Regulatory Technical Standards on a minimum set of the information on financial contracts that should be contained in the detailed records and the circumstances in which the requirement should be imposed” (the RTS) as required by Article 71(7) of the Bank Recovery and Resolution Direction […]

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 26 May 2015, the Prudential Regulation Authority (PRA) published Consultation Paper CP 19/15, “Contractual stays in financial contracts governed by third-country law”.  The consultation period closes on 26 August 2015 and seeks comment on two aspects of current regulation which impact on portfolios of trading documentation – contractual stays and data mining. Contractual […]

Introduction On 6 March 2015, the European Banking Authority (EBA) published a consultation paper containing a “Draft Regulatory Standard on a minimum set of the information on financial contracts that should be contained in the detailed records” required by the Bank Recovery and Resolution Directive[1](BRRD). The consultation period closes on 6 June 2015 so as […]

The European Commission has helpfully published a document in excel format, grouping questions and answers by their respective BRRD articles. The document also refers to more general questions regarding BRRD transposition and interaction with other EU legislation. The Commission clarifies that the document has no legislative force, but serves to provide “elements of reflection” , […]