Question
Is the reference to Chapter III in Article 96(3)(b) correct?
Background on the question
Article 96(3) of Directive 2014/59/EU (BRRD) stated that “Where a resolution authority takes an independent action in relation to a Union branch, it shall have regard to the resolution objectives and take the action in accordance with the following principles and requirements, insofar as they are relevant: (a) the principles set out in Article 34; (b) the requirements relating to the application of the resolution tools in Chapter III of Title IV.” The reference to Chapter III seems does not seem to be correct since resolution tools and their general principles are explained under Chapter IV. Could you please confirm it?
Answer
The cross referencing to Chapter III in Article 96(3)(b) is mistaken. The reference should be to Chapter IV. 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.