What changed between the draft committee report and the plenary report

Added:(45) Since the objectives of this Regulation, namely to improve the effectiveness and efficiency of the recovery and resolution framework for institutions and entities, cannot be sufficiently achieved by the Member States due to the risks that diverging national approaches might entail for the integrity of the single market but can rather, by amending rules that are already set at Union level, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,

Added:HAVE ADOPTED THIS REGULATION:

Added:Amendments to Regulation (EU) No 806/2014

Added:Regulation (EU) No 806/2014 is amended as follows:

Added:(1) Article 3(1) is amended as follows:

Added:(a) point (24a) is replaced by the following:

Added:‘(24a) ‘resolution entity’ means a legal person established in a participating Member State, which the Board or the national resolution authority, in accordance with Article 8 of this Regulation, has identified as an entity in respect of which the resolution plan provides for resolution action;’;

Added:(b) the following points (24d) and (24e) are inserted:

Added:‘(24d) ‘non-EU G-SII’ means a non-EU G-SII as defined in Article 4(1), point (134), of Regulation (EU) No 575/2013;

Added:(24e) ‘G-SII entity’ means a G-SII entity as defined in Article 4(1), point (136), of Regulation (EU) No 575/2013;’;

Added:(c) point (49) is replaced by the following:

Added:‘(49) ‘bail-inable liabilities’ means the liabilities, including those liabilities that give rise to accounting provisions, and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments of an entity as referred to in Article 2 and that are not excluded from the scope of the bail-in tool pursuant to Article 27(3);’;

Added:(2) in Article 4, the following paragraph 1a is inserted:

Added:‘1a. Member States shall inform the Board as soon as possible of their request to enter into a close cooperation with the ECB pursuant to Article 7 of Regulation (EU) No 1024/2013.

Added:Following the notification made pursuant to Article 7 of Regulation (EU) No 1024/2013 and before close cooperation is established, Member States shall provide all information about the entities and groups established in their territory that the Board may require to prepare for the tasks conferred on it by this Regulation and the Agreement.’;

Added:(3) Article 7 is amended as follows:

Added:(a) in paragraph 3, fourth subparagraph, the first sentence is replaced by the following:

Added:‘When performing the tasks referred to in this paragraph, the national resolution authorities shall apply the relevant provisions of this Regulation. Any references to the Board in Article 5(2), Article 6(5), Article 8(6), (8), (12) and (13), Article 10(1) to (10), Article 10a, Articles 11 to 14, Article 15(1), (2) and (3), Article 16, Article 18(1), (1a), (2) and (6), Article 20, Article 21(1) to (7), Article 21(8), second subparagraph, Article 21(9) and (10), Article 22(1), (3) and (6), Articles 23 and 24, Article 25(3), Article 27(1) to (15), Article 27(16), second subparagraph, second sentence, third subparagraph, and fourth subparagraph, first, third and fourth sentences, and Article 32, shall be read as references to the national resolution authorities with regard to groups and entities referred to in the first subparagraph of this paragraph.’;

Added:(b) paragraph 5 is amended as follows:

Added:(i) the words ‘Article 12(2)’ are replaced by the words ‘Article 12(3)’;

Added:(ii) the following subparagraph is added:

Added:‘After the notification referred to in the first subparagraph has taken effect, participating Member States may decide that the responsibility for performing the tasks related to entities and groups established in their territory, other than those referred to in paragraph 2, shall be returned to the national resolution authorities, in which case the first subparagraph shall no longer apply. Member States that intend to make use of that option shall notify the Board and the Commission thereof. That notification shall take effect from the day of its publication in the Official Journal of the European Union.’;

Added:(4) Article 8 is amended as follows:

Added:(a) in paragraph 2, the following subparagraph is added:

Added:‘The Board may instruct the national resolution authorities to exercise the powers referred to in Article 10(8) of Directive 2014/59/EU. The national resolution authorities shall implement the instructions of the Board in accordance with Article 29 of this Regulation.’;

Added:(aa) in paragraph 9, the first subparagraph is amended as follows:

Added:(i) the following point is inserted:

Added:‘(aa) where applicable, a detailed description of the reasons for determining that an institution is to be qualified as a liquidation entity, including an explanation of how the resolution authority came to the conclusion that the institution lacks critical functions;’;

Added:(ii) the following point is inserted:

Added:‘(ja) a description of how the different resolution strategies would best achieve the resolution objectives set out in Article 14;’;

Added:(iii) the following point is inserted:

Added:‘(pa) a detailed and quantified list of covered deposits and eligible deposits from natural persons and micro, small and medium-sized enterprises.’;

Added:(b) in paragraph 10, the following subparagraphs are added:

Added:‘The identification of the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities may be subject to a simplified approach by the Board, after consulting with the relevant national resolution authority, and if such approach would not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, the absence of critical functions and the group resolution strategy.

Added:The group resolution plan shall determine whether entities within a resolution group, other than the resolution entity, qualify as liquidation entities. Without prejudice to other factors that may be deemed relevant by the Board, entities that provide critical functions shall not qualify as liquidation entities.’;

Added:(ba) in paragraph 11, the following point is inserted:

Added:‘(-aa) contain a detailed description of the reasons for determining that a group entity is to be qualified as a liquidation entity, including an explanation of how the resolution authority came to the conclusion that the institution lacks critical functions, and how the ratio of its total risk exposure amount and operating income in the group’s total risk exposure amount and operating income, as well as the leverage ratio of the group entity in the context of the group have been taken into account;’;

Added:(c) the following paragraph is added:

Added:‘14. The Board shall not adopt resolution plans for the entities and groups referred to in paragraph 1 where Article 22(5) applies or where insolvency proceedings have been initiated with regard to the entity or group ▌in accordance with the applicable national law pursuant to Article 32b of Directive 2014/59/EU.’;

Added:(5) Article 10 is amended as follows:

Added:(a) in paragraph 4, fourth subparagraph, the words ‘first subparagraph’ are replaced by the words ‘third subparagraph’;

Added:(b) in paragraph 7, the words ‘addressed to the institution or the parent undertaking’ are replaced by the words ‘addressed to the entity or the parent undertaking’ and the words ‘impact on the institution’s business model’ are replaced by the words ‘impact on the entity’s or the group’s business model’;

Added:(c) paragraph 10 is amended as follows:

Added:(i) in the second subparagraph, the word ‘institution’ is replaced by the words ‘entity concerned’;

Added:(ii) in the third subparagraph, the word ‘institution’ is replaced by the word ‘entity’;

Added:(iii) the following subparagraph is added:

Added:‘If the measures proposed by the entity concerned effectively reduce or remove the impediments to resolvability, the Board shall take a decision, after having consulted the ECB or the relevant national competent authority and, where appropriate, the designated macro-prudential authority. That decision shall indicate that the measures proposed effectively reduce or remove the impediments to resolvability and shall instruct the national resolution authorities to require the institution, the parent undertaking, or any subsidiary of the group concerned, to implement the measures proposed.’;

Added:(d) the following paragraph is added:

Added:‘13a. The resolution authority shall publish, at the end of each resolution planning cycle, an anonymised list that presents in an aggregated form any identified substantive impediments to resolvability and relevant actions to address them. The professional secrecy provisions laid down in Article 88 shall apply. ’;

Added:(6) Article 10a is amended as follows:

Added:(a) in paragraph 1, the introductory wording is replaced by the following:

Added:‘1. Where an entity is in a situation where it meets the combined buffer requirement when considered in addition to each of the requirements referred to in Article 141a(1), points (a), (b) and (c), of Directive 2013/36/EU, but fails to meet the combined buffer requirement when considered in addition to the requirements referred to in Articles 12d and 12e of this Regulation when calculated in accordance with Article 12a(2), point (a), of this Regulation, the Board shall have the power, in accordance with paragraphs 2 and 3 of this Article, to instruct the national resolution authority to prohibit an entity from distributing more than the Maximum Distributable Amount related to the minimum requirement for own funds and eligible liabilities ("M-MDA"), calculated in accordance with paragraph 4 of this Article, through any of the following actions:’;

Added:(b) the following paragraph 7 is added:

Added:‘7. Where an entity is not subject to the combined buffer requirement on the same basis as the basis on which it is required to comply with the requirements referred to in Articles 12d and 12e, the Board shall apply paragraphs 1 to 6 of this Article on the basis of the estimation of the combined buffer requirement in accordance with Commission Delegated Regulation (EU) 2021/1118*. Article 128, fourth paragraph, of Directive 2013/36/EU shall apply.

Added:The Board shall include the estimated combined buffer requirement referred to in the first subparagraph in the decision determining the requirements referred to in Articles 12d and 12e of this Regulation. The entity shall make the estimated combined buffer requirement publicly available together with the information referred to in Article 45i(3) of Directive 2014/59/EU.

Added:______________________________

Added:* Commission Delegated Regulation (EU) 2021/1118 of 26 March 2021 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the methodology to be used by resolution authorities to estimate the requirement referred to in Article 104a of Directive 2013/36/EU of the European Parliament and of the Council and the combined buffer requirement for resolution entities at the resolution group consolidated level where the resolution group is not subject to those requirements under that Directive (OJ L 241, 8.7.2021, p. 1).’;

Added:(7) in Article 12, the following paragraph 8 is added:

Added:‘8. The Board shall be responsible for granting the permissions referred to in Articles 77(2) and 78a of Regulation (EU) No 575/2013 to the entities referred to in paragraph 1 of this Article. The Board shall address its decision to the entity concerned.’;

Added:(8) in Article 12a, paragraph 1 is replaced by the following: