01/06/2017 | Clifford Chance
A Commission Delegated Regulation (2017/867) on classes of arrangement to be protected in a partial property transfer under Article 76 of the BRRD has been published in the Official Journal.
The various classes of arrangements set out in Article 76(2) of the BRRD are detailed to varying degrees, and some classes refer to one type of contractual relationship and liability or to a limited set of contractual relationships and liabilities, while others cover a greater number and an open range of contractual liabilities, transactions and relationships. The Delegated Regulation further specifies the classes of protected arrangements in relation to security arrangements, set-off and netting arrangements and structured finance arrangements. The Delegated Regulation is not intended to prevent resolution authorities from further specifying in partial transfers those types of set-off and netting arrangements to be protected in individual partial transfers, where those arrangements are recognised for risk mitigation purposes under the applicable prudential rules, and the protection, in particular by non-separability, is a condition for that recognition.
The Regulation will enter into force on 9 June 2017.