BRRD: Calculation of 2016 ex-ante contributions

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BRRD: Calculation of 2016 ex-ante contributions

December 2015

CSSF Circular 15/626 on Single Resolution Fund – Information request by the Single Resolution Board for the calculation of the 2016 contribution according to Articles 4 and 14 of the Commission Delegated Regulation (EU) 2015/63

On 1 December 2015, the Commission de Surveillance du Secteur Financier published its CSSF Circular 15/626 on Single Resolution Fund – Information request by the Single Resolution Board for the calculation of the 2016 contribution according to Articles 4 and 14 of the Commission Delegated Regulation (EU) 2015/63. The purpose of this circular is to collect data for the calculation of 2016 ex-ante contributions to the Single Resolution Fund.

According to Article 100 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms (BRRD)", EU Member State are required to establish one or more national resolution financing arrangements in order to ensure the effective application by the resolution authority of the resolution tools and powers.

According to Article 103(1) of the BRRD, ex-ante contributions shall be raised at least annually from all institutions incorporated under Luxembourg law.
Branches established in Luxembourg by institutions having their head office outside the Union will be covered by the Luxembourg Resolution Fund and not by the present circular.

For EU Member States participating in the Single Supervisory Mechanism (SSM), a Single Resolution Fund (SRF) is established under the responsibility of the Single Resolution Board (SRB) from 01/01/2016 onwards.

The methodology for the calculation of the ex-ante contributions to the Single Resolution Fund and the obligation of the credit institutions as regards the necessary information to be provided in a Single Resolution Mechanism context are specified in the Commission Delegated Regulation (EU) 2015/63 with regard to ex-ante contributions to resolution financing arrangements (DR) and in the Council Implementing Regulation (EU) 2015/81 specifying uniform conditions of application of Regulation (EU) No 806/2014 of the European Parliament and of the Council with regard to ex-ante contributions to the Single Resolution Fund (CR).

The duly filled in template (Annex 2) necessary for calculation of 2016 ex-ante contributions must be submitted by the institutions no later than 1 February 2016 24:00 Brussels time.

Where an institution does not submit the data by the aforementioned deadline, the SRB will use estimates or its own assumptions in order to calculate the annual contributions of the institution concerned.

In addition, each credit institution must make the relevant file (Annex 2) available to the resolution department of the CSSF, which will ensure transmission to the SRB, a document certifying that the submitted template complies with the general instructions.

For this purpose Annex 3 (to this Circular) has to be completed, to be signed by at least one of the members of the banks’ authorised management and to be sent to the CSSF also at the latest by 1 February 2016.

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