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
Previous ArticleDave Ramsden of BoE Explains Its Approach to Fintech
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.