Commission Implementing Regulation (EU) 2021/622 of 15 April 2021 laying down implementing technical standards for the application of Directive 2014/59/EU of the European Parliament and of the Council with regard to uniform reporting templates, instructions and methodology for reporting on the minimum requirement for own funds and eligible liabilities (Text with EEA relevance)

THE EUROPEAN COMMISSION

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (1), and in particular Article 45j(2), third subparagraph, thereof,

Whereas:

(1) Resolution authorities have been given the task of setting minimum requirements for own funds and eligible liabilities (MREL) in accordance with the requirements and procedures laid down in Articles 45 to 45i of Directive 2014/59/EU. To assist the European Banking Authority (EBA) in promoting convergence across the Union for the setting of MREL, resolution authorities are required under Article 45j of that Directive to inform the EBA, in coordination with competent authorities, of the MREL they have set.

(2) Commission Implementing Regulation (EU) 2018/308 (2) specifies formats and templates for the transmission by resolution authorities to the EBA of the information regarding their decisions setting the MREL. Since the adoption of that Implementing Regulation, the requirements related to the loss-absorbing and recapitalisation capacity and, in particular, the features of and methodologies for setting the MREL of credit institutions and investment firms laid down in Directive 2014/59/EU have been amended and further specified by Directive (EU) 2019/879 of the European Parliament and of the Council (3).

(3) In order to facilitate the EBA’s monitoring of MREL decisions and to ensure a meaningful assessment of convergence across the Union for the setting of MREL, the formats and templates specified for the identification and transmission of information on MREL by resolution authorities to the EBA should be adapted to reflect the amendments to Directive 2014/59/EU, relating in particular to MREL subordination levels and the MREL applied to entities that are not themselves resolution entities.

(4) With respect to groups that are subject to MREL on a consolidated basis, it is necessary to clarify which resolution authority should transmit the information on MREL to the EBA. Therefore, resolution authorities responsible for groups’ subsidiaries, in coordination with competent authorities, should inform the EBA of the MREL that has been set for each institution under their jurisdiction. That information should include the MREL set on the basis of a joint decision reached between the resolution authority of the resolution entity, the group-level resolution authority, where different from the former, and the resolution authority responsible for the subsidiary on an individual basis. In the absence of a joint decision, that information should also include decisions setting the MREL taken by the resolution authority of the subsidiary in accordance, where applicable, with the decision that may be taken by the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council (4).

(5) In order to promote convergence of practices regarding MREL decisions and strengthen the monitoring role of the EBA, the reporting periods and submission dates for the transmission of information under full and simplified reporting by the resolution authorities to the EBA should be aligned.

(6) To enhance data quality and ensure comparability, the data items set out in the reporting templates should comply with the single data point model, as is the practice in supervisory reporting. The single data point model should consist of a structural representation of the data items, identify all relevant business concepts for uniform reporting on MREL decisions and contain all the relevant specifications necessary for further development of uniform IT reporting solutions. For the same reason, the data exchange format should be set out in the EBA’s reporting system (EUCLID).

(7) To ensure the quality, consistency and accuracy of data items reported, the data items should be subject to common validation rules.

(8) Given the extent of the necessary amendments to Implementing Regulation (EU) 2018/308, it is appropriate, for reasons of clarity, transparency and legal certainty, to repeal that Implementing Regulation and to replace it by a new Implementing Regulation.

(9) This Regulation is based on the draft implementing technical standards submitted to the Commission by the EBA.

(10) The EBA has conducted open public consultations on the draft implementing technical standards on which this Regulation is based, analysed the potential related costs and benefits, and requested the advice of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010,

HAS ADOPTED THIS REGULATION:

Article 1

Information to be transmitted to the EBA

Resolution authorities, in coordination with competent authorities, shall transmit to the EBA the information specified in the templates set out in Annexes I and II to this Regulation relating to the setting of MREL in accordance with Articles 45 to 45h and Article 45m of Directive 2014/59/EU.

Article 2

Simplified reporting requirement for institutions subject to waivers and for institutions for which the recapitalisation amount is zero

Article 3

Reporting authority and information to be reported for groups

For groups that are subject to MREL on a consolidated basis in accordance with Article 45e, Article 45f(1), third subparagraph, and Article 45f(4), point (b), of Directive 2014/59/EU, the information referred to in Articles 1 and 2 shall be submitted by the following authorities and in the following manner:

(a) the group-level resolution authority, in coordination with the group level supervisory authority, shall inform the EBA of the MREL of the Union parent undertaking set on a consolidated basis;

(b) the resolution authorities taking the decisions setting the MREL, in coordination with the competent authority, shall inform the EBA of the MREL to be applied to the group subsidiaries under their jurisdiction at the resolution group consolidated level and on an individual basis as applicable.

Article 4

Reporting periods and submission dates

Resolution authorities shall, by 31 May of each year, transmit the information referred to in Articles 1 and 2 for the MREL applicable as of 1 May of that year.

Article 5

Data exchange formats and information accompanying submissions

(a) information that is not required or not applicable shall not be included in a data submission;

(c) institutions, insurance undertakings and legal entities shall be identified by their Legal Entity Identifier (LEI), where available.

Article 6

Repeal

Implementing Regulation (EU) 2018/308 is hereby repealed.

Article 7

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 15 April 2021.

For the Commission The President Ursula VON DER LEYEN

(1) OJ L 173, 12.6.2014, p. 190.

(2) Commission Implementing Regulation (EU) 2018/308 of 1 March 2018 laying down implementing technical standards for Directive 2014/59/EU of the European Parliament and of the Council with regard to formats, templates and definitions for the identification and transmission of information by resolution authorities for the purposes of informing the European Banking Authority of the minimum requirement for own funds and eligible liabilities (OJ L 60, 2.3.2018, p. 7).

(3) Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending Directive 2014/59/EU as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (OJ L 150, 7.6.2019, p. 296).

(4) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).