On September 22, 2014, the EBA published proposed guidelines for national regulators on early intervention triggers under the Banking Recovery and Resolution Directive (“BRRD”). The proposed guidelines aim to ensure the consistent application by national regulators of triggers for the decision on whether early intervention measures should be utilized and to provide guidance to national regulators on the circumstances in which early intervention measures should be considered. The early intervention measures are set out in the BRRD and are available to national regulators when a firm infringes or is likely to infringe the requirements of CRD IV (including capital, liquidity and leverage standards) or the authorization and operating conditions for investment firms set out in the new Markets in Financial Instruments Directive or certain provisions of the Markets in Financial Instruments Regulation (relating to transparency for equity instruments, certain transparency obligations for systematic internalisers and investment firms trading OTC and transaction reporting requirements). The measures included in the BRRD are in addition to the supervisory powers available to national regulators under CRD IV. The EBA’s consultation on the proposed guidelines is open until December 22, 2014.
The consultation paper is available at: