{"id":"circulars/cssf-23-18","title":"Circular CSSF-CODERES 23/18","type":"circular","date":"2023-11-30","kind":"circular","html":"

Circular CSSF-CODERES 23/18 is a CSSF circular, published 30 November 2023. Subject: Application of three EBA Guidelines : EBA/GL/2022/01, EBA/GL/2022/11, EBA/GL/2023/05.

\n

Relevant for: Credit institutions, Investment firms.

\n

Keywords: Resolution.

\n

Text

\n

Circular CSSF-CODERES 23/18 Application of three Guidelines of the European Banking Authority: Resolvability Guidelines (EBA/GL/2022/01) Transferability Guidelines (EBA/GL/2022/11) Resolvability Testing Guidelines (EBA/GL/2023/05)

\n

Circular CSSF -CODERES 23/18 Application of three Guidelines of the European Banking Authority: Resolvability Guidelines (EBA/GL/2022/01) Transferability Guidelines (EBA/GL/2022/11) Resolvability Testing Guidelines (EBA/GL/2023/05) To Luxembourg institutions whose resolution plan established by the CSSF provides for the use of one or more resolution tools and who are not subject to simplified obligations for resolution planning in accordance with Article 5 of the Law of 18 December 2015 on the failure of credit institutions and certain investment firms (Article 4 of Directive 2014/59/EU)

\n

Luxembourg, 30 November 2023 Ladies and Gentlemen, The purpose of this circular is to implement, for the institutions in scope, the three following Guidelines (hereafter also collectively designated “the Guidelines”) of the European Banking Authority (“EBA”): •

\n

Guidelines EBA/GL/2022/01 on improving resolvability for institutions and resolution authorities under articles 15 and 16 of BRRD (the “Resolvability Guidelines”),

\n

Guidelines EBA/GL/2022/11 on transferability to complement the resolvability assessment for transfer strategies (EBA/GL/2022/11) (the “Transferability Guidelines”), and

\n

Guidelines EBA/GL/2023/05 amending the Resolvability Guidelines to introduce a new section on resolvability testing (the “Resolvability Testing Guidelines\")

\n

The CSSF as resolution authority has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting convergence in the field of resolution at European level. This circular requires institutions in scope to take resolution tool-specific actions in order to improve their resolvability in the context of the resolvability assessment performed by the CSSF according to Articles 26, 27 and 28 of the Law of 18 December 2015 on the failure of credit institutions and certain investment firms (the “2015 Law”) (Articles 15 and 16 of Directive 2014/59/EU (the “BRRD”)).

\n

TABLE OF CONTENTS 1. The Guidelines .............................................................................................................. 4 2. In-scope entities ........................................................................................................... 5 3. Level of application ........................................................................................................ 5 4. Date of application ........................................................................................................ 5

\n
    \n
  1. The Guidelines The resolvability assessment process is a key element of resolution planning in that it ensures that the resolution strategy can be effectively implemented. As resolution authorities have made progress in deciding on resolution strategies and setting MREL, the focus is put on ensuring that banks become resolvable in line with their preferred resolution strategies and that impediments to resolution are removed. The Resolvability Guidelines aim to implement existing international standards on resolvability and take stock of the best practices so far developed by EU resolution authorities on resolvability topics. In particular, these guidelines focus on improving resolvability in the following areas: operational continuity in resolution, access to financial market infrastructures (FMIs), funding and liquidity in resolution, bail-in execution, business reorganisation and communication. The Resolvability Guidelines aim to set out the resolvability conditions for resolution entities or resolution groups for which the resolution strategy involves the use of resolution powers as opposed to a liquidation procedure.
    2. \n
\n

The text above is the opening of the document; the PDF carries the whole.

\n

Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

"}