QA2020-187 - Third country contractual recognition and UK

Owned by SRB Services
Feb 01, 2024
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Resolution Reporting Subject Matter Guidance
Guidance Documents Issuances-under-non-EU27-law
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Unique Identifier

QA2020-187

Question


Some of the LDR templates request information on the third country-law contractual recognition. What should be filled in the corresponding column for cases where UK law is involved (if possible, please also clarify the discrepancies between QA2019-90 and QA2020-88)?


Response


For the purpose of the detail in 'c014x – Of which Issuances under non-EU MS jurisdiction/law, excluding intragroup' of T01.00, the issuances under UK law should not be included as the UK indeed still was a Member State as at the reporting date. However, as regards the details in the subsequent reporting sheets, the guidance clearly indicates the need to consider 3rd country OR UK law. This information will be used for resolution planning purposes in line with the EBA opinion mentioned in the relevant footnotes: Consistently with the EBA Opinion on issues related to the departure of the UK from the EU (EBA/Op/2017/12), par. 24(k) that incites resolution authorities to “mitigate the risk that the use of their powers will not automatically be recognised by the UK courts, for instance through requiring the inclusion of resolution action recognition clauses in contracts governed by English law”.