The EBA has published the following final draft RTS which it is responsible for preparing under the EU Bank Recovery and Resolution Directive:
- RTS on the minimum requirement for own funds and eligible liabilities, known as MREL, to ensure firms have adequate loss absorbing capacity. MREL will be set by resolution authorities for each firm so that resolution plans are effective and will be linked to the capital requirements of a firm. A tailored approach is set out for financial market infrastructures that are also subject to MREL requirements and for subsidiaries of groups. The RTS aim to ensure that the MREL requirements are compatible with the proposed Total Loss Absorbing Capacity requirements, known as TLAC, which are being developed at international level.
The RTS on MREL are available at: http://www.eba.europa.eu/documents/10180/1132900/EBA-RTS-2015-05+RTS+on+MREL+Criteria.pdf.
- RTS on the contractual recognition of bail-in of contracts governed by the law of a non-EU country which set out when the contractual recognition clause requirement does not apply, for example, if the non-EU country has a statutory regime which provides for the recognition of the write-down and conversion powers of an EU resolution authority.
The RTS on contractual recognition of bail-in powers is available at: http://www.eba.europa.eu/documents/10180/1132911/EBA-RTS-2015- 06+RTS+on+Contractual+Recognition+of+Bail-in.pdf.
- RTS on the operational functioning of resolution colleges which will be established for groups that operate on a cross-border basis in the European Economic Area. The RTS set out details on the establishment of a college, describe the resolution planning process, provide for the manner in which the resolution of a cross-border group should be undertaken, the exchange of information and interaction between resolution authorities, the requirements for EU resolution authorities to develop a framework for involvement of third country resolution authorities and the process for reaching decisions in the event of disagreement between resolution authorities.
The RTS on resolution colleges is available at: http://www.eba.europa.eu/documents/10180/1132831/EBA-RTS-2015- 03+Final+draft+RTS+on+Resolution+Colleges.pdf.
- RTS on notification which set out the process and information required for firms to notify their national regulators that the firm is failing or likely to fail, for national regulators to then notify the resolution authority and the publication by the resolution authority of the resolution action taken using its powers under the BRRD. The RTS also cover the situation where the national regulator assesses for itself that a firm is likely to fail or is failing.
The RTS on notification requirements are available at: http://www.eba.europa.eu/documents/10180/1132842/EBA-RTS-2015- 04+Final+Draft+RTS+on+Notifications.pdf.
- RTS on the criteria for assessing the independence of valuers from both the resolution authority and the firm or entity subject to the valuation, including ensuring that the valuer has no actual or potential material interests in common or in conflict with any relevant authority or entity concerned which might influence the valuer’s judgement in performing the valuation. The RTS identify two situations which preclude a person per se from being an independent valuer: (i) where the valuer is not legally separate from an authority or entity subject to valuation; and (ii) where the person, in the year preceding the date on which his independence is assessed, has completed a statutory audit of the relevant entity.
The RTS on valuers is available at: http://www.eba.europa.eu/documents/10180/1134100/EBA-RTS-2015-07+RTS+on+independent+valuers.pdf.
All of the RTS will, once they enter into force, apply directly across the EU.