On September 22, 2014, the EBA published proposed guidelines for national regulators on the circumstances in which a firm may be deemed to be failing or likely to fail. The proposed guidelines set out the factors that national regulators should consider when assessing whether a firm is infringing or likely to infringe the requirements for its continued authorization, if the firm’s assets are less than its liabilities or if it will be unable to pay its debts as they fall due. The list of factors in the proposed guidelines is non-exhaustive, thereby, allowing national regulators to consider other elements indicating that a firm is failing or likely to fail. Responses to the EBA’s consultation paper are due by December 22, 2014.
The consultation paper is available at: