Tag: Article 55 BRRD
The Impracticability of Contractual Bail-In
Introduction Article 55 of the BRRD requires Member States to ensure that in-scope institutions include a contractual term by which the creditor or party to the agreement creating a liability recognises that the liability in question may be subject to the write-down and conversion powers within the BRRD and agrees to be bound by any […]
Art 55 BRRD- PRA no action permanent
The PRA yesterday issued a consultation paper (CP)proposing to make permanent its time-limited 25 November 2015 waiver of Article 55 BRRD compliance, in respect of phase 2 liabilities. The waiver took effect via modification by consent, the consent being that of the PRA. If granted, the modification is valid until the earlier of 30 June 2016, […]
Art. 55 BRRD – No-Action Letter Brit-style
The PRA has today issued a short-term waiver in respect of phase 2 liabilities under its transposition of Article 55 BRRD. Its rules require firms to amend contracts with 3rd country counterparties, to include a term that subordinates liabilities to the Bank’s resolution authority, a contractual recognition of bail-in. The requirement was imposed via a […]