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

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796