Question
Could you please clarify the meaning of the wording “where relevant” in Articles 4 (3) (4) and (8) of Directive 2014/59/EU (BRRD)?
Background on the question
Article 4 (3) of Directive 2014/59/EU (BRRD) states that “Member States shall ensure that where simplified obligations are applied the competent authorities and, where relevant, resolution authorities can impose full, unsimplified obligations at any time.” Article 4 (4) of Directive 2014/59/EU (BRRD) states that: states that “Member States shall ensure that the application of simplified obligations shall not, per se, affect the competent authority's and, where relevant, the resolution authority's powers to take a crisis prevention measure or a crisis management measure” Article 4 (8) of Directive 2014/59/EU (BRRD) states that: “Subject to paragraphs 9 and 10, Member States shall ensure that competent authorities and, where relevant, resolution authorities may waive the application of: […].” Does “where relevant” in those 3 paragraphs of Article 4 intend to differentiate amongst the responsibilities of the various authorities, i.e. recovery plans for the competent authorities and resolution plans for the resolution authorities?
Answer
Indeed, "where relevant" in Articles 4 (3) (4) and (8) of Directive 2014/59/EU (BRRD) intends to differentiate amongst the responsibilities of the individual authorities, e.g. recovery plans for the competent authorities and resolution plans for the resolution authorities. Disclaimer: 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.