On November 10, 2014, the EBA published proposed draft RTS on valuation in recovery and resolution for consultation. Under the BRRD, independent valuations are required both before and after resolution of a firm to inform the decisions of resolution authorities. Before resolution, valuations are required to assess whether the conditions for resolution or bail-in are met and assist in determining which resolution action should be adopted and the extent of any bail-in. Valuations are required after resolution to determine whether a firm’s shareholders or creditors would have received more advantage if normal insolvency proceedings were used. The EBA has prepared two proposed draft RTS, for before and after resolution. The consultation closes on February 6, 2015.

The consultation paper is available at:

http://www.eba.europa.eu/documents/10180/886895/CP+on+draft+RTS+on+valuation+-+EBA-CP-2014-38.pdf.