Changes from adopted text to adopted text

Removed(b) in paragraph 3, second subparagraph, the following sentence is added:

Removed‘The obligation referred to in paragraph 2 shall cease to apply after the second report is submitted.’;

Removed(35a) in Article 45m, the following paragraph is inserted:

Removed‘1a. By way of derogation from Article 45(1), resolution authorities shall determine appropriate transitional periods for institutions or entities referred to in Article 1(1), points (b), (c) and (d), to comply with the requirements in Articles 45e or 45f or with the requirements in Article 45b(4), (5) or (7), if institutions or entities are subject to those requirements as a result of the entry into force of ... [this amending Directive]. The deadline for institutions and entities to comply with the requirements in Articles 45e or 45f or the requirements that result from the application of Article 45b(4), (5) or (7) shall be .... [four years from the date of application of this amending Directive].

RemovedThe resolution authority shall determine intermediate target levels for the requirements in Articles 45e or 45f or for the requirements that result from the application of Article 45b(4), (5) or (7), as appropriate, that institutions or entities referred to in the first subparagraph of this paragraph shall comply with by ... [two years from the date of application of this amending Directive]. The intermediate target levels, as a rule, shall ensure a linear build-up of own funds and eligible liabilities towards the requirement.

RemovedThe resolution authority may set a transitional period that ends after ... [four years from the date of application of this amending Directive] where duly justified and appropriate on the basis of the criteria referred to in paragraph 7, taking into consideration:

Removed(a) the development of the entity’s financial situation;

Removed(b) the prospect that the entity will be able to ensure compliance in a reasonable timeframe with the requirements in Article 45e or 45f or with a requirement that results from the application of Article 45b(4), (5) or (7); and

Removed(c) whether the entity is able to replace liabilities that no longer meet the eligibility or maturity criteria and if not, whether that inability is of an idiosyncratic nature or is due to market-wide disturbance.’;

Removed(36) in Article 45m, paragraph 4 is replaced by the following:

Removed‘4. The requirements referred to in Article 45b(4) and (7) and in Article 45c(5) and (6), as applicable, shall not apply within the three-year period following the date on which the resolution entity or the group of which the resolution entity is part has been identified as a G-SII or a non-EU G-SII, or the resolution entity starts to be in the situation referred to in Article 45c(5) or (6).’;

Removed(37) in Article 46(2), the first subparagraph is replaced by the following:

Removed‘The assessment referred to in paragraph 1 of this Article shall establish the amount by which bail-inable liabilities need to be written down or converted:

Removed(a) to restore the Common Equity Tier 1 capital ratio of the institution under resolution or where applicable establish the ratio of the bridge institution taking into account any contribution of capital by the resolution financing arrangement made pursuant to Article 101(1), point (d), of this Directive;

Removed(b) to sustain sufficient market confidence in the institution under resolution or the bridge institution, taking into account any contingent liabilities, and enable the institution under resolution to continue to meet, for at least 1 year, the conditions for authorisation and to continue to carry out the activities for which it is authorised under Directive 2013/36/EU or Directive 2014/65/EU.’;

Removed(38) in Article 47(1), point (b)(i) is replaced by the following:

Removed‘(i) relevant capital instruments and eligible liabilities in accordance with Article 59 issued by the institution pursuant to the power referred to in Article 59(2); or’;

Removed(39) Article 52 is amended as follows:

Removed(a) in paragraph 1, the following subparagraph is added:

Removed‘In exceptional circumstances, the resolution authority may extend the 1 month deadline for submission of the business reorganisation plan by another month.’;

Removed(b) in paragraph 5, the following subparagraph is added:

Removed‘The resolution authority may require the institution or entity referred to in Article 1(1), points (b), (c) or (d), to include additional elements in the business reorganisation plan.’;

Removed(40) in Article 53, paragraph 3 is replaced by the following:

Removed‘3. Where a resolution authority reduces to zero the principal amount of, or outstanding amount payable in respect of, a liability, including a liability giving rise to an accounting provision, by means of the power referred to in Article 63(1), point (e), that liability and any obligations or claims arising in relation to it that are not accrued at the time when the power is exercised, shall be treated as discharged for all purposes, and shall not be provable in any subsequent proceedings in relation to the institution under resolution or any successor entity in any subsequent winding up.’;

Removed(41) Article 55 is amended as follows:

Removed(a) in paragraph 1, point (b) is replaced by the following:

Removed‘(b) the liability is not a deposit as referred to in Article 108(1), points (a) or (b)’;

Removed(b) in paragraph 2, the fifth and sixth subparagraphs are replaced by the following:

Removed‘Where the resolution authority, in the context of the assessment of the resolvability of an institution or entity referred to in Article 1(1), points (b), (c) or (d), in accordance with Articles 15 and 16, or at any other time, determines that, within a class of liabilities which includes eligible liabilities, the amount of liabilities that do not include the contractual term referred to in paragraph 1 of this Article, together with the liabilities which are excluded from the application of the bail-in tool in accordance with Article 44(2) or which are likely to be excluded in accordance with Article 44(3), amounts to more than 10 % of that class, it shall immediately assess the impact of that particular fact on the resolvability of that institution or entity, including the impact on the resolvability resulting from the risk of breaching the creditor safeguards provided in Article 73 when applying write-down and conversion powers to eligible liabilities.

RemovedWhere the resolution authority concludes, on the basis of the assessment referred to in the fifth subparagraph of this paragraph, that the liabilities which do not include the contractual term referred to in paragraph 1 of this Article create a substantive impediment to resolvability, it shall apply the powers provided in Article 17 as appropriate to remove that impediment to resolvability.’;

Removed(c) the following paragraph is inserted:

Removed‘2a. Institutions and entities referred to in Article 1(1), point (b), (c) or (d), shall report to the resolution authority on an annual basis the following:

Removed(a) the total outstanding amounts of all liabilities governed by the law of a third country;

Removed(b) for the items referred in point (a):

Removed(i) their composition, including their maturity profile;

Removed(ii) their ranking in normal insolvency proceedings;

Removed(iii) whether the liability is excluded under Article 44(2);

Removed(iv) whether they include in the contractual provisions the term required by paragraph 1;

Removed(v) where a determination has been made that it is legally or otherwise impracticable to include the contractual recognition of bail-in clause in accordance with paragraph 2, the category of the liability pursuant to paragraph 7.

RemovedWhere institutions and entities are part of a resolution group, the report shall be done by the resolution entity concerning the resolution group, to the extent required by paragraph 1, second and third subparagraphs.’;

Removed(d) the following paragraph is added:

Removed‘8a. EBA shall develop draft implementing technical standards to specify procedures and uniform formats and templates for the reporting to resolution authorities referred to in paragraph 2a.

RemovedEBA shall submit those draft implementing technical standards to the Commission by ... [one year from the date of entry into force of this amending Directive].

RemovedPower is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010.’;

Removed(42) Article 59 is amended as follows:

Removed(a) in paragraph 3, point (e) is replaced by the following:

Removed‘(e) extraordinary public financial support is required by the institution or the entity referred to in Article 1(1), points (b), (c) or (d), except where that support is granted in one of the forms referred to in Article 32c.’;

Removed(b) in paragraph 4, point (b) is replaced by the following:

Removed‘(b) having regard to timing, the need to implement effectively the write down and conversion powers or the resolution strategy for the resolution group, and other relevant circumstances, there is no reasonable prospect that any action, including alternative private sector measures, supervisory action or early intervention measures, other than the write down or conversion of capital instruments and eligible liabilities as referred to in paragraph 1a, would prevent the failure of the institution or the entity referred to in Article 1(1), points (b), (c) or (d), or the group within a reasonable timeframe.’;

Removed(43) Article 63 is amended as follows:

Removed(a) paragraph 1 is amended as follows:

Removed(i) point (m) is replaced by the following:

Removed‘(m) the power to require the competent authority to assess the acquirer of a qualifying holding in a timely manner by way of derogation from the time-limits laid down in Article 22 of Directive 2013/36/EU and Article 12 of Directive 2014/65/EU;’;

Removed(ii) the following point (n) is added:

Removed‘(n) the power to make requests pursuant to Article 17(5) of Regulation (EU) No 596/2014 on behalf of the institution under resolution.’;

Removed(b) in paragraph 2, point (a) is replaced by the following:

Removed‘(a) subject to Article 3(6) and Article 85(1), requirements to obtain approval or consent from any person either public or private, including the shareholders or creditors of the institution under resolution and the competent authorities for the purposes of Articles 22 to 27 of Directive 2013/36/EU;’;

Removed(44) Article 71a(3) is replaced by the following:

Removed‘3. Paragraph 1 shall apply to any financial contract which complies with all of the following:

Removed(a) the contract creates a new obligation, or materially amends an existing obligation after the entry into force of the provisions adopted at national level to transpose this Article;’