EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers. The Annexes to Regulation 2021/1751 contain templates, instructions, single data point model, and validation rules for reporting. Regulation 2021/1751 supplements the Bank Recovery and Resolution Directive (BRRD or 2014/59/EU) and shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Article 55(1) of BRRD provides that under certain conditions member states are to require institutions and entities referred to in BRRD to include a contractual term by which the counterparty to an agreement or instrument creating the liability recognizes that the liability may be subject to the write-down and conversion powers. Article 55(2) of BRRD requires member states to ensure that where such an institution or entity reaches the determination that it is legally or otherwise impracticable to include such a contractual term (determination of impracticability of contractual recognition), the institution or entity must notify its determination to the resolution authority. For the purpose of making a notification in accordance with Article 55(2), the institution or entity shall submit to the resolution authority the information specified in the templates set out in Annex I of Regulation 2021/1751. These templates shall be completed in accordance with the instructions set out in Annex II of the Regulation 2021/1751. Institutions and entities shall submit the information in the data-exchange formats and representations specified by the relevant resolution authority. When submitting information, the institutions and entities shall respect the data point definitions included in the single data point model referred to in Annex III and the validation rules referred to in Annex IV of Regulation 2021/1751.
Effective Date: October 24, 2021
Keywords: Europe, EU, Banking, BRRD, Implementing Technical Standards, Contractual Recognition, Basel, Resolution Framework, Reporting, Validation Rules, EC
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