Letter to HM Treasury: Transposition of BRRD II: 11 August 2020

Directive (EU) 2019/879 as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms (“BRRD II”) entered into force on 27 June 2019.  BRRD II updates the E.U.’s resolution policy and framework for Minimum Requirements for Own Funds and Eligible Liabilities (“MREL”), provided by Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms (“the BRRD”). HM Treasury has published a Consultation on the transposition of BRRD II, which, it has stated, concerns those parts of BRRD II that come into effect before the end of the Transition Period.

The FMLC has submitted a response highlighting a few issues of legal uncertainty in connection with the transposition of BRRD II.

Available as: PDF.