CSSF on Data Collection for Calculation of Ex-Ante Contribution to SRF
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
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
Dave Ramsden of BoE Explains Its Approach to FintechRelated Articles
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
BoE Announces Changes to Validation Rules for Form BTL
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
BCBS Proposes Changes to Process for Reviewing G-SIB Methodology
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.
