Alternative Investment Management Association
On 6 June 2012, the European Commission released its proposal for a ‘Directive establishing a framework for the recovery and resolution of credit institutions and investment firms’ (BRRD).
The BRRD proposal has been developed in order to fulfil the EU’s G20 and FSB commitments on the recovery and resolution of large financial institutions and groups, and provides for a harmonised system of European rules which are intended to deal with the distress and failure of such institutions within the EU in order to minimise systemic consequences and avoid recourse to extraordinary public support.
The BRRD proposal can be separated into three categories:
The European Parliament ECON Committee adopted its final compromise text on 20 May 2013. The Council reached a final position or 'General Approach' in June 2013. The text of the BRRD proposal is currently being negotiated during inter-institutional Trialogues between the European Commission, European Parliament and Council of the European Union.
Draft Regulatory Technical Standards on the content of recovery plans under the draft Directive establishing a framework for the recovery and resolution of credit institutions and investment firms (March 2013)
Response to EC crisis management consultation (March 2011)
ECB Opinion on Commission Proposal for the RRD (November 2012)
EC Communication on Bank Resolution Funds (May 2010)
On 5 October 2012, the European Commission released a consultation on a possible framework for the resolution of non-bank financial institutions. The Consultation builds upon the G20 mandate and FSB Key Attributes which provide for effective recovery and resolution regimes for all financial institutions. It considers, in particular, the risks and resolution challenges posed by FMI's and insurance companies. AIMA submitted a response. Regulatory proposals are expected during 2014.
On 17 October 2013, the European Parliament ECON committee voted to adopt an own initative report ont he recovery and resolution of non-banks. This was subsequently tabled for the European Parliament during a plenary sitting on 22 October 2013.