Circular CSSF 22/808 is a CSSF circular, published 2 May 2022. Subject: Application of the EBA Guidelines on recovery plan indicators under Article 9 of Directive 2014/59/EU (EBA/GL/2021/11).
\nRelevant for: Credit institutions, Investment firms.
\nCircular CSSF 22/808 Application of the EBA Guidelines on recovery plan indicators under Article 9 of Directive 2014/59/EU (EBA/GL/2021/11)
\nCircular CSSF 22/808 Re: Application of the EBA Guidelines on recovery plan indicators under Article 9 of Directive 2014/59/EU (EBA/GL/2021/11)
\nLadies and Gentlemen,
\nLuxembourg, 2 May 2022 To all BRRD institutions submitting a recovery plan to the CSSF
\nThe purpose of this circular is to inform you that the CSSF, in its capacity as competent authority, applies the revised Guidelines of the European Banking Authority (EBA) on recovery
\nplan
\nindicators
\nunder
\nArticle
\nDirective
\n2014/59/EU
\n(Ref.
\nEBA/GL/2021/11) (“the Guidelines”), published on 9 November 2021. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level. All entities described in the scope of application below shall duly comply with the Guidelines.
\nThe Guidelines The Guidelines are issued by the EBA in accordance with Article 9(2) of Directive 2014/59/EU 1. The Guidelines specify the minimum list of quantitative and qualitative recovery plan indicators to be included in the recovery plans developed and assessed in accordance with Articles 5 to 9 of Directive 2014/59/EU as further specified in Articles 3 to 21 of Commission Delegated Regulation (EU) 2016/1075 2 and set expectations regarding the appropriate arrangements for the regular monitoring of such indicators, the points at which actions referred to in the recovery plans may be taken, the action to be taken in relation to these indicators and any condition necessary for the application of Article 9(1) of Directive 2014/59/EU with regard to these indicators.
\n1 Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012 of the European Parliament and of the Council 2 Commission Delegated Regulation (EU) 2016/1075 of 23 March 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of recovery plans, resolution plans and group resolution plans, the minimum criteria that the competent authority is to assess as regards recovery plans and group recovery plans, the conditions for group financial support, the requirements for independent valuers, the contractual recognition of write-down and conversion powers, the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges
\nCompared to the previous guidelines EBA-GL-2015-02, the revised Guidelines mainly provide: •
\nAmendments to the minimum list of recovery plan indicators: Three recovery plan indicators have been added to the minimum list of indicators (MREL/TLAC, liquidity position and available central-bank eligible unencumbered assets), while one indicator (cost of wholesale funding) was removed from the list;
\nAdditional guidance on the expected calibration of recovery plan indicator thresholds: The Guidelines establish a set of general qualitative requirements that institutions shall take into account when calibrating indicator thresholds, focusing also on the treatment of recovery plan indicators in a crisis and in particular in case of the application of supervisory relief measures;
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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