The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.
Below are the key highlights of the recent updates:
- The draft circular on resolution planning defines the minimum requirements that institutions or group companies must meet to be considered resolvable with regard to the categories pursuant to Article 26 (3) of Regulation (EU) 2016/1075 on recovery and resolution planning. The minimum requirements for improving the resolvability of companies are structured according to seven dimensions, which are governance, loss-absorbing and recapitalization capacity, liquidity and funding, operational continuity and access to financial market infrastructure services, information systems and data requirements, communication, and separability and restructuring. BaFin will accept comments until July 01, 2022.
- The draft ordinance, amending the capital investment conduct and organization ordinance, intends to implement the Delegated Directive (EU) 2021/1270 into German law. Delegated Directive 2021/1270 amends Directive 2010/43/EU regarding the sustainability risks and sustainability factors to be taken into account for the Undertakings for Collective Investment in Transferable Securities (UCITS). The Delegated Directive 2021/1270 is to be implemented by July 31, 2022 and applied from August 01, 2022. The consultation was open until June 08, 2022.
Related Links (in German)
- Press Release on Minimum Resolvability Requirements
- Consultation on Minimum Resolvability Requirements
- Press Release on Amendments to Capital Investment Ordinance
- Consultation on Amendments to Capital Investment Ordinance
Keywords: Europe, Germany, Banking, Resolution Planning, Resolution Framework, Resolvability, Recovery And Resolution, Governance, Credit Risk, Basel, ESG, Sustainable Finance, BaFin
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