BRRD: EU Commission adopts RTS on business reorganisation plans

The EU Commission has adopted a Commission Delegated Regulation setting out regulatory technical standards (RTS) specifying the minimum elements of a business reorganisation plan and the minimum contents of the reports on the progress in the implementation of the plan under the Bank Recovery and Resolution Directive (BRRD).

Among other things, the RTS require reorganisation plans to address the causes of an institution's failure and set out how the firm will be restored to long-term viability so that by the end of the reorganisation period, at the latest, the institution is capable of fulfilling its internal capital adequacy assessment process under the Capital Requirements Directive (CRD 4), all relevant prudential and other regulatory requirements on a forward-looking basis and has a viable and sustainable business model.