On April 17, the European Banking Authority (EBA) published its draft implementing technical standards (ITS) on reporting for resolution plans under the EU Bank Recovery and Resolution Directive (BRRD).
Under the BRRD, EU Member States must ensure that resolution authorities have the power to require investment firms and credit institutions to cooperate as much as necessary in preparing resolution plans and to provide resolution authorities with all information necessary to implement, not just prepare, resolution plans.
As currently drafted, the new framework will be operational for the collection of information, from firms subject to the BRRD, with the reference date of December 31, 2018. Information under the new framework is expected to be submitted in the first year by May 31, 2019 at the latest. Thereafter, the remittance date will be April 20 of each year.
The EBA identifies three objectives for the new ITS:
- clarifying the scope of the reporting requirements—for certain entities whose failure would have limited impact on financial stability, resolution authorities may waive or reduce the requirement and, for others, require additional data;
- specifying minimum procedural and technical reporting requirements to help improve data quality and allow for automated collection, quality control and exchange; and
- updating the resolution templates to account for experience since the introduction of the original ITS on information for resolution plans in 2014/2015.
The EBA’s report, which contains the draft ITS, is available here.
The EBA’s press release regarding the draft ITS, as well as amendments to the ITS on supervisory reporting, is available here.