European Commission Publishes Final Regulatory Technical Standards for Contractual Recognition of BRRD Resolution Stays

[33733]

August 20, 2021

TO: ICI Members
ICI Global Members
Derivatives Markets Advisory Committee
Global Regulated Funds Committee
Global Trading & Markets Committee SUBJECTS: Derivatives
International/Global
Investment Advisers
Trading and Markets RE: European Commission Publishes Final Regulatory Technical Standards for Contractual Recognition of BRRD Resolution Stays

 

On August 16, 2021, the European Commission published final regulatory technical standards (RTS) on the contractual recognition of stay powers under the European Bank Recovery and Resolution Directive (BRRD).[1] Now that the RTS have been adopted and published in the Official Journal of the European Union, they will enter into force on September 5, 2021. Thus, contractual recognition clauses in financial contract governed by third-country law that are entered into on or after September 5 must satisfy the RTS.[2]

 

Sarah A. Bessin
Associate General Counsel

 

endnotes

[1] See https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32021R1340&from=EN.

[2] For more information on the final RTS, please see ICI Memorandum No. 33497 (Apr. 24, 2021), available at https://www.ici.org/memo33497.