Changes from report parliamentary committee draft to plenary report

Added(a) own funds;

Added(b) liabilities that fulfil the eligibility criteria referred to in Article 72a of Regulation (EU) No 575/2013, with the exception of Article 72b(2), points (b) and (d), of that Regulation;

Added(c) the liabilities referred to in Article 12c(2).

AddedArticles 77(2) and 78a of Regulation (EU) No 575/2013 shall not apply to liquidation entities for which the resolution authority has not determined the requirement referred to in Article 12a(1) of this Regulation.

AddedHoldings of own funds instruments or holdings of liabilities issued by subsidiaries which are liquidation entities for which the resolution authority has not determined the requirement referred to in Article 12a(1) shall not be deducted under Article 72e(5) of Regulation (EU) No 575/2013.’;

Added(3) Article 12g is amended as follows:

Added(a) in paragraph 1, the following ▌subparagraph is inserted after the third subparagarph:

Added‘By way of derogation from the first and second subparagraphs, where intermediate entities would be disproportionately affected by the deduction rules set out in Article 72e(5) of Regulation (EU) No 575/2013, the Board may decide to determine the requirement laid down in Article 12d on a consolidated basis for a subsidiary as referred to in this paragraph where the resolution authority confirms that all of the following conditions are met:

Added(a) the subsidiary meets one of the following conditions:

Added(i) the subsidiary is held directly by the resolution entity and:

Added- the resolution entity is a Union parent financial holding company or a Union parent mixed financial holding company;

Added- both the subsidiary and the resolution entity are established in the same participating Member State and are part of the same resolution group;

Added- the resolution entity does not hold directly any subsidiary as referred to in Article 2 other than the subsidiary concerned;

Added(ii) the subsidiary is subject to the requirement referred to in Article 104a of Directive 2013/36/EU ▌on a consolidated basis only;

Added(b) compliance with the requirement laid down in Article 12d on a consolidated basis as a substitute for compliance with that requirement on an individual basis does not negatively affect in a significant way:

Added(i) the resolvability of the resolution group,

Added(ii) the subsidiary’s capacity to comply with its own funds requirement after the exercise of the write-down and conversion powers; and

Added(iii) the internal loss transfer and recapitalisation mechanism, including the write down or conversion, in accordance with Article 21, of relevant capital instruments and eligible liabilities of the institution or subsidiary concerned or of other entities in the resolution group.’;

Added(b) the following paragraph 2a is inserted:

Added‘2a. Where an entity as referred to in paragraph 1 complies with the requirement referred to in Article 12a(1) on a consolidated basis, the amount of own funds and eligible liabilities of that entity shall include the following liabilities issued in accordance with paragraph 2, point (a), of this Article by a subsidiary established in the Union included in the consolidation of that entity:

Added(a) liabilities issued to and bought by the resolution entity, either directly, or indirectly through other entities in the same resolution group that are not included in the consolidation of the entity complying with the requirement referred to in Article 12a(1) on a consolidated basis;

Added(b) liabilities issued to an existing shareholder that is not part of the same resolution group.

AddedThe liabilities referred to in the first subparagraph, points (a) and (b), shall not exceed the amount determined by subtracting from the amount of the requirement referred to in Article 12(1) applicable to the subsidiary included in the consolidation the sum of all of the following:

Added(a) the liabilities issued to and bought by the entity complying with the requirement referred to in Article 12a(1) on a consolidated basis either directly, or indirectly through other entities in the same resolution group that are included in consolidation the consolidation of that entity;

Added(b) the amount of own funds that are issued in accordance with paragraph 2, point (b), of this Article.’.

AddedTransposition

AddedMember States shall adopt and publish, by … [OP please insert the date = 6 months after the date of entry into force of this amending Directive] at the latest, the laws, regulations and administrative provisions necessary to comply with Article 1. They shall forthwith communicate to the Commission the text of those provisions.

AddedMember States shall apply those provisions from … [OP please insert the date = 1 day after the transposition date of this amending Directive].

AddedWhen Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

AddedMember States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by Article 1.

AddedEntry into force and application

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

AddedArticle 2 , points (1) and (2), shall apply from … [OP please insert the date = 1 day after the transposition date of this amending Directive].

AddedArticle 2, point (3), shall apply from … [one day from the date of entry into force of this amending Directive].

AddedArticle 2 shall be binding in its entirety and directly applicable in all Member States.

AddedAddressees

AddedThis Directive is addressed to the Member States.

AddedDone at Strasbourg,

AddedFor the European Parliament For the Council

AddedThe President The President