Featured Product

    CSSF on Data Collection for Calculation of Ex-Ante Contribution to SRF

    October 29, 2019

    CSSF published a circular (CSSF-CODERES 19/09) on information request by SRB for calculation of the 2020 ex-ante contribution to the Single Resolution Fund (SRF) on an annual basis. To determine, in accordance with provisions of the EU Delegated Regulation 2015/63 and the EU Implementing Regulation 2015/81, the annual contribution to be paid by each credit institution in 2020, SRB needs to obtain a certain amount of information in relation to the Single Resolution Mechanism as expressed in its introduction letter (Annex 1). To gather the necessary data, SRB has developed a template (Annex 2) and the associated completion instructions. The completed template must be sent to CSSF by January 14, 2020.

    The earlier mentioned Regulations 2015/63 and 2015/81 specify the methodology for calculation of this contribution to SRF and the obligations of the credit institutions regarding the necessary information to be provided in the context of the Single Resolution Mechanism. In case not all required information is transmitted correctly by January 14, 2020, SRB shall use estimates or its own assumptions for calculation of the 2020 contribution of the concerned credit institution to SRF. In specific cases, SRB may assign the credit institution concerned to the highest risk adjusting multiplier, for the calculation of the institution's contribution to SRF.

    In addition, each credit institution that directly, or as part of a group, falls under the direct ECB supervision (Annex 3), unless it is subject to the lump-sum payment, must make available, to the resolution department of the CSSF, additional assurance documents, which will be transmitted to SRB. These documents can either be Agreed Upon Procedures (AUP) where an external auditor confirms specific data (Annex 4) or a Sign-off form where at least one of the members of the banks’ authorized management certifies that the submitted template complies with the general instructions (Annex 5). The documents must be sent to CSSF by February 17, 2020.

    Article 100 of the Bank Recovery and Resolution Directive or BRRD (2014/59/EU) requires member states of EU to establish one or more national resolution financing arrangements for ensuring the effective application by the resolution authority of the resolution tools and powers. In accordance with Article 103(1) of the BRRD, ex-ante contributions shall be raised at least annually from all institutions incorporated under the Luxembourg law. However, branches established in Luxembourg by institutions that have their head office outside EU are not targeted by the present circular, as they will be covered by the Luxembourg Resolution Fund.

     

    Related Link: CSSF Circular (PDF)

    Keywords: Europe, Luxembourg, Banking, Single Resolution Fund, Ex-ante Contributions, Reporting, BRRD, Resolution, SRB, CSSF

    Featured Experts
    Related Articles
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Sets Out Plan to Transform Data Collection from Financial Sector

    BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.

    February 23, 2021 WebPage Regulatory News
    News

    BIS Issues Updates on Technology Initiatives on Cross-Border Payments

    BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.

    February 23, 2021 WebPage Regulatory News
    News

    ESRB Updates List of Macro-Prudential Measures in February 2021

    ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.

    February 22, 2021 WebPage Regulatory News
    News

    BoE Survey Shows Positive COVID Impact on Outsourced Banking Services

    BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.

    February 22, 2021 WebPage Regulatory News
    News

    ECB Issues Opinion on Proposal to Regulate Crypto-Asset Markets in EU

    In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.

    February 22, 2021 WebPage Regulatory News
    News

    APRA Announces Aggregate Committed Liquidity Facility for Banks

    APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).

    February 19, 2021 WebPage Regulatory News
    News

    ECB and UK Authorities Agree on Post-Brexit Supervisory Cooperation

    ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.

    February 19, 2021 WebPage Regulatory News
    News

    EIOPA Outlines Strategic Supervisory Priorities for Insurance Sector

    EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.

    February 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6619