The PRA has today issued a short-term waiver in respect of phase 2 liabilities under its transposition of Article 55 BRRD. Its rules require firms to amend contracts with 3rd country counterparties, to include a term that subordinates liabilities to the Bank’s resolution authority, a contractual recognition of bail-in. The requirement was imposed via a […]

On 13 November the PRA published its policy statement and supervisory statement containing final rules requiring contractual stays in financial contracts governed by third country law (see this blog post for more detail).  The policy statement requires firms to amend “financial arrangements” entered into, or materially amended, after the relevant effective dates.[1] Whilst the PRA […]

The regulation of Securities Financing Transactions (SFTs) has occupied an increasing number of column inches since the adoption by the EU Parliament on 29 October 2015 of the proposed regulation on “reporting and transparency of securities financing transactions”.  Below are a couple of further updates forming part of the same broad theme. BCBS Consults on […]

On 3 November 2015, the Financial Stability Board (FSB) published a consultation paper on “Developing Effective Resolution Strategies and Plans for Systemically Important Insurers”. The consultation paper develops themes first documented in the FSB’s “Key Attributes of Effective Resolution Regimes for Financial Institutions” (the “Key Attributes”).  Amongst other things, it discusses the way in which […]

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 […]

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 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” , […]

On 19 December 2014, the FCA published its Policy Development Update for December 2014 (PDU 18) which details forthcoming FCA publications relating to a number of areas, as detailed below: Prudential Standards Initiative Current Expected Publication Date Previous Expected Publication Date (PDU 17) Recovery and Resolution Directive – PS to CP14/15 January 2015 TBC   […]