COMMISSION IMPLEMENTING REGULATION (EU) 2021/1751
of 1 October 2021
laying down implementing technical standards for the application of Directive 2014/59/EU of the European Parliament and of the Council with regard to uniform formats and templates for notifications of determination of the impracticability of including contractual recognition of write down and conversion powers
(Text with EEA relevance)
Article 1
Information to be provided in a notification of determination of impracticability
Article 2
Format for the submission of information
Article 3
Entry into force and application
ANNEXE I
N 00.01 - Notification Identification
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Columns |
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Identification |
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0010 |
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Rows |
Notification ID |
0010 |
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Notification date |
0020 |
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Notification type |
0030 |
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Reference date for templates N01.01 and N01.02 |
0040 |
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Reference date for template N02.00 |
0050 |
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Applicable currency |
0060 |
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Institution or entity name |
0070 |
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Code |
0080 |
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Type of code |
0090 |
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Contact person |
0100 |
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0110 |
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Telephone |
0120 |
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N 01.01 - Impracticability of contractual recognition of bail-in by contract/instrument
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Type of notification |
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LIABILITY ID |
MATERIAL AMENDMENT? |
FINAL MATURITY DATE |
RENEWABLE? |
RENEWAL FREQUENCY |
CONTRACT / INSTRUMENT |
IMPRACTICABILITY |
COUNTERPARTY |
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DESCRIPTION |
LIABILITY TYPE |
GOVERNING LAW |
INSOLVENCY RANKING UNDER THIRD-COUNTRY LAW |
INSOLVENCY RANKING IN THE MEMBER STATE OF INCORPORATION |
NOMINAL AMOUNT IN THE MAIN ORIGINAL CURRENCY |
MAIN ORIGINAL CURRENCY |
NOMINAL AMOUNT IN LOCAL CURRENCY |
CONDITIONS |
CATEGORY |
REASONS FOR MEETING THE CONDITIONS |
LEGAL OPINION? |
NAME |
CODE |
TYPE OF CODE |
NATIONAL CODE |
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0010 |
0020 |
0030 |
0040 |
0050 |
0060 |
0070 |
0080 |
0090 |
0100 |
0110 |
0120 |
0130 |
0140 |
0150 |
0160 |
0170 |
0180 |
0190 |
0200 |
0210 |
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N 01.02 -Impracticability of contractual recognition of bail-in by category
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CATEGORY |
TOTAL VALUE OF LIABILITIES IN LOCAL CURRENCY IN CATEGORY |
REASONS FOR MEETING THE CATEGORIES / CONDITIONS |
INSOLVENCY RANKING |
NUMBER OF UNDERLYING LIABILITIES |
0010 |
0020 |
0030 |
0040 |
0050 |
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N 02.00 - Liability Insolvency Classes
INSOLVENCY RANKING |
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NOMINAL AMOUNT OF TOTAL LIABILITIES CURRENTLY NOTIFIED TO THE RESOLUTION AUTHORITY |
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OUTSTANDING AMOUNT OF TOTAL LIABILITIES IN RANKING |
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OF WHICH: EXCLUDED FROM BAIL-IN |
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OF WHICH: LIABILITIES GOVERNED BY THE LAW OF A THIRD COUNTRY |
OF WHICH: NOT INCLUDING CONTRACTUAL RECOGNITION |
OF WHICH: CURRENTLY NOTIFIED TO THE RESOLUTION AUTHORITY |
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0010 |
0020 |
0030 |
0040 |
0050 |
0060 |
0070 |
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ANNEX II
Instructions for filling in the notification of determination of impracticability of contractual recognition of write down and conversion powers
PART I: GENERAL INSTRUCTIONS
1.
Structure of the notification
2.
Scope of consolidation
PART II: TEMPLATE-SPECIFIC INSTRUCTIONS
3.
N00.01 – Notification identification
3.1
Instructions concerning specific rows
Rows |
Instructions |
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0010 |
Notification ID Each notification shall have a unique ID provided by the notifying institution or entity. The notification ID is per notification [submission], not per liability or category. A notification allows the inclusion of any number of liabilities or categories, as relevant at the time of the notification. The institution or entity shall provide the notification ID, which shall be unique for each notification. |
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0020 |
Notification date Institutions and entities shall indicate the date when the notification was sent to the resolution authority. |
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0030 |
Notification type (1) Institutions and entities shall indicate the type of items being notified in the submission in question, as follows:
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0040 |
Reference date for templates N01.01 and N01.02 Institutions and entities shall indicate the reference date for the information in template N01.01 and template N01.02 notifications. |
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0050 |
Reference date for template N02.00 Institutions and entities shall indicate the reference date for the information in the template N02.00. |
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0060 |
Applicable currency Institutions and entities shall indicate the reference currency for the amounts in template N01.01, column 0130; template N01.02, column 0020; and template N02.00. This value refers to the official currency in the Member State where the notifying institution is incorporated. The value shall be in line with the alphabetical ISO 4217 code. |
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0070 |
Institution or entity name Name of the notifying institution or entity. |
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0080 |
Code Code of the notifying institution or entity. For institutions, the code shall be the 20-digit, alphanumerical Legal Entity Identifier (LEI) code. For other entities, the code shall be the 20-digit, alphanumerical LEI code or, if not available, a code under a uniform codification applicable in the Union or, if not available, a national code. The code shall be consistent with the code reported for the same institution or entity under Commission Implementing Regulation (EU) 2018/1624(2). The code field shall always have a value. |
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0090 |
Type of code The institution or entity shall specify the type of code indicated in column 0080 as an ‘LEI code’ or ‘Non-LEI code’. The type of code shall always have one of the two values. |
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0100 |
Contact person Institutions and entities shall indicate the name of a person to be contacted if the resolution authority needs clarification regarding the notification. |
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0110 |
Institutions and entities shall indicate the email address of the person referred to in row 0100, ‘Contact person’. |
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0120 |
Telephone Institutions and entities shall indicate the telephone number of the person referred to in row 0100, ‘Contact person’. |
4.
N01.01 – Impracticability of contractual recognition of bail-in by contract/instrument
4.1
General remarks
4.2
Instructions concerning specific columns
Columns |
Legal references and instructions |
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0010 |
LIABILITY ID The liability ID is a unique identifier generated by the notifying institution or entity that shall be used in all notifications to identify each liability. The institution or entity may use the internal code of the liability. |
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0020 |
MATERIAL AMENDMENT? This field is to be filled in only for contracts/instruments amending existing liabilities. The institution or entity making the notification shall indicate if the amendments to the existing liability are considered material. Institutions and entities shall use one of the following values:
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0030 |
FINAL MATURITY DATE The date upon which all principal and interest of the liability must be repaid (based on the transaction contractual documentation). The day, month and year of the final maturity date shall be provided. The exact day shall be provided where that information is available, otherwise the first day of the month shall be used. |
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0040 |
RENEWABLE? Institutions and entities shall use one of the following values:
This column shall be filled in with ‘Yes’ if the contract includes an explicit provision regarding its renewability. |
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0050 |
RENEWAL FREQUENCY If column 0040 is filled in with ‘Yes’, institutions and entities shall specify the frequency of the maturity renewal in months. |
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0060–0130 |
CONTRACT/INSTRUMENT |
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0060 |
DESCRIPTION Institutions and entities shall provide a contract/instrument description of no more than 300 characters. This field shall contain the main characteristics of the contract/instrument not captured in the other fields of this notification (such as. the purpose/essence of the liability, whether the instrument is bail-in-able under the governing third-country law). |
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0070 |
LIABILITY TYPE Institutions and entities shall identify the contract/instrument as being one of the following types:
If more than one type is applicable, the one that best describes the purpose of the contract /instrument shall be selected. |
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0080 |
GOVERNING LAW Institutions and entities shall provide the ISO 3166-1 three-letter alphabetical code of the country the law of which governs the contract/instrument. |
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0090 |
INSOLVENCY RANKING UNDER THIRD-COUNTRY LAW The institution or entity shall fill in the value corresponding to the liability’s ranking on a scale from 1 to x, with 1 being the most subordinated and x the most senior class, as defined by the relevant applicable third-country law governing the liability. The institution shall try to obtain said ranking from the relevant third-country resolution authority or, in the absence of such an official ranking, shall determine on its own the value (on a scale from 1 to x) based on the liability ranking according to the relevant third-country law. |
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0100 |
INSOLVENCY RANKING IN THE MEMBER STATE OF INCORPORATION Institutions and entities shall fill in the value corresponding to the liability’s ranking on a scale from 1 to x, with 1 the most subordinated and x the most senior class, as defined by the relevant law applicable in the Member State where the notifying institution or entity is incorporated. |
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0110 |
NOMINAL AMOUNT IN THE MAIN ORIGINAL CURRENCY Institutions and entities shall provide the nominal amount of the liability as laid down in the contract/instrument. For framework agreements, the institution or entity should indicate the maximum amount it expects to be reached under that framework agreement or the maximum amount permitted under the framework agreement. If the contract/instrument has more than one currency, institutions and entities shall report the nominal amount in the prevailing currency in the contract. |
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0120 |
MAIN ORIGINAL CURRENCY Institutions and entities shall assign a currency ISO code corresponding to the denomination of the liability under the contract. The three-letter currency unit code according to ISO 4217 shall be used. If the contract has more than one currency, institutions and entities shall report the prevailing currency in the contract. |
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0130 |
NOMINAL AMOUNT IN LOCAL CURRENCY Institutions and entities shall fill in this column if the currency used in column 0110 is not the local currency where the institution or entity is incorporated. Institutions and entities shall use the foreign exchange rate applicable at the date of notification. |
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0140–0190 |
IMPRACTICABILITY |
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0140 |
CONDITIONS Institutions and entities shall identify the condition(s) under which they consider it is legally or otherwise impracticable to include the contractual term, as specified in Commission Delegated Regulation (EU) 2021/1527(3). Institutions and entities shall provide the combination of applicable conditions (they can identify only one or as many as all five):
All conditions that are applicable shall be notified. |
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0150 |
CATEGORY Institutions and entities shall indicate the categories of liabilities specified by the relevant resolution authority under Article 55(7) of Directive 2014/59/EU, if applicable. |
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0160 |
REASONS FOR MEETING THE CONDITIONS Institutions and entities shall describe clearly their reasons for determining impracticability arising from the conditions reported in column 0140. The information entered in this field is relevant for determining whether the notified contract/instrument meets the conditions of impracticability and shall therefore constitute the basis for the resolution authority’s assessment of the institution’s determination. Institutions and entities shall avoid overly brief justifications such as ‘Product cannot be used’ or ‘Loss of competitiveness’ and shall present more in-depth justifications in order to enable the resolution authority to take an informed decision. |
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0170 |
LEGAL OPINION? Institutions and entities shall inform the resolution authority if there is a legal opinion concerning the notified impracticability of this liability. Institutions and entities shall indicate one of the following:
If institutions or entities indicate ‘Yes’, they shall transmit the legal opinion to the resolution authority by the means specified by the resolution authority. |
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0180–0210 |
COUNTERPARTY Institutions and entities shall indicate the identity of the counterparty of this liability. |
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0180 |
NAME The name indicated shall be of the individual counterparty. In the case of multi-party contracts, the institution shall either indicate the main counterparty or use the value ‘multi-party contract’. |
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0190 |
CODE The code as part of a row identifier must be unique for each notifying entity. For institutions, the code shall be the LEI code. For other entities, the code shall be the LEI code or, if not available, a national code. The code shall be unique and used consistently across the templates and over time. The code field shall always have a value. |
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0200 |
TYPE OF CODE The institutions or entities shall identify the type of code filled in column 0190 as ‘LEI code’ or ‘National code’. |
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0210 |
NATIONAL CODE Institutions or entities may also provide a national code if they use the LEI code as the identifier in the ‘Code’ column 0190. |
5.
N01.02 – Impracticability of contractual recognition of bail-in by category
5.1
General remarks
5.2
Instructions concerning specific columns
Columns |
Legal references and instructions |
0010 |
CATEGORY Institutions and entities shall indicate the category of liabilities, as specified by the relevant resolution authority in accordance with Article 55(7) of Directive 2014/59/EU, for which it submits the notification. A notification using template N01.02 can include as many categories of liabilities as necessary. |
0020 |
TOTAL VALUE OF LIABILITIES IN LOCAL CURRENCY IN CATEGORY Institutions and entities shall indicate the expected total amount of liabilities for each of the notified categories indicated in column 0010. The amount shall be an estimated maximum amount to be reached under the specified category for a period of 6 months from the date of notification. The amount shall be expressed in the currency of the Member State where the institution or entity is incorporated. If during the 6-month period following the notification, the institution or entity determines that the value of the liabilities in the category has increased by more than 10% of the notified amount, it shall submit another notification to the resolution authority. |
0030 |
REASONS FOR MEETING THE CATEGORIES/CONDITIONS Institutions and entities shall explain why the category of liabilities has been notified. The reasoning will constitute the basis for the resolution authority to make an assessment of the notification of impracticability. |
0040 |
INSOLVENCY RANKING Institutions and entities shall fill in the values corresponding to the ranking of the liabilities in each category in column 0010, on a scale from 1 to x, with 1 being the most subordinated and x the most senior class, as defined by the relevant law applicable in the Member State where the notifying institution or entity is incorporated. |
0050 |
NUMBER OF UNDERLYING LIABILITIES Institutions and entities shall indicate the estimated maximum number of contracts/instruments to be held under the respective category of liabilities for a period of 6 months from the date of notification. |
6.
N02.00 – Liability insolvency classes
6.1
General remarks
6.2
Instructions concerning specific columns
Columns |
Legal references and instructions |
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0010 |
INSOLVENCY RANKING The institution or entity shall fill in the value corresponding to the liability’s ranking on a scale from 1 to x, with 1 being the most subordinated and x the most senior class, as defined by the national law applicable in the Member State where the institution or entity is incorporated. Template N02.00 shall include a line for each insolvency ranking indicated in template N01.01, column 0100, and in template N01.02, column 0040. |
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0020 |
OUTSTANDING AMOUNT OF TOTAL LIABILITIES IN RANKING The total outstanding amount of all liabilities for the insolvency ranking provided in column 0010. |
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0030 |
OF WHICH: LIABILITIES GOVERNED BY THE LAW OF A THIRD COUNTRY This column shall include the outstanding amount of liabilities governed by the law of a third country. |
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0040 |
OF WHICH: NOT INCLUDING CONTRACTUAL RECOGNITION This column shall include the outstanding amount of all liabilities governed by the law of a third-country that do not include the contractual recognition of bail-in clause as required by Article 55(1) of Directive 2014/59/EU. The value will be the outstanding amount. The value will be computed as the sum of all liabilities that fulfil the following conditions:
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0050 |
OF WHICH: CURRENTLY NOTIFIED TO THE RESOLUTION AUTHORITY This column shall include the outstanding amounts of all liabilities and/or categories of liabilities notified in templates N01.01 and N01.02 of this notification. |
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0060 |
OF WHICH: EXCLUDED FROM BAIL-IN This column shall include liabilities that are excluded from the application of the bail-in tool in accordance with Article 44(2) of Directive 2014/59/EU or that could fall under any condition in Article 44(3) of that Directive. |
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0070 |
NOMINAL AMOUNT OF TOTAL LIABILITIES CURRENTLY NOTIFIED TO THE RESOLUTION AUTHORITY This column shall reflect the total (sum) of the nominal and/or maximum expected amounts of the liabilities and/or categories of liabilities notified in templates N01.01 and N01.02 of this notification. |