Question
Can you please clarify whether Article 41 (4) of Directive 2014/59/EU (BRRD) is about the sale by the resolution authority of the bridge institution; or the sale by the bridge institution of the institution in resolution or an entity referred to in Article 1(1)(b)(c)(d)?
Background on the question
It does not appear that Article 41(4) of the BRRD is clear it is about the sale by the resolution authority of the bridge institution, not about the sale of an institution in resolution or an entity referred to in Article 1(1), points b, c or d of the BRRD. Is that what is really meant? Or is it the sale by the bridge institution of the institution in resolution or an entity referred to in Article 1(1), (b),(c) or (d)?
Answer
Article 41(4) of Directive 2014/59/EU (BRRD) covers the situation it mentions. Even where the sale of assets, rights or liabilities is not directly affected by the resolution authority but by the bridge institution (through its management), the provision needs to apply. Since the bridge institution is controlled by the resolution authority, it is the authority who "seeks" the sale of the bridge institution's assets, rights, or liabilities. The requirements mentioned in Article 41(4) must therefore be ensured by Member States even if the sale is directly affected by the bridge institution. This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.