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EU Parliament Proposes Amendments to RRD

Last week the EU Parliament published a draft opinion of its Committee on Legal Affairs dated 14 December 2012 regarding the Proposal for a Directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms” (the “RRD”).

The proposed amendments contained within the draft opinion do not alter the fundamental principles, or amend the core clauses, of the RRD.  Rather they “seek to improve certain inaccuracies and aspects of the proposal drafted by the Commission”.  Most noteworthy is the proposed amendment to remove the obligation to conduct an ex-post assessment of whether shareholders and creditors have received treatment no less favourable than would have been the case under normal insolvency proceedings.  The EU Parliament has suggested that this assessment only be carried out following a request from such shareholders or creditors.

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