emendrix

Art. 12g

Single Resolution Mechanism Regulation · 32014R0806 · every event for this act · on EUR-Lex

Application of the minimum requirement for own funds and eligible liabilities to entities that are not themselves resolution entities

3 changes recorded across 3 events, newest first.

in force 2026-06-11 MODIFIED+992 −17

Amended by Regulation (EU) 2026/808 32026R0808

applies from: unchanged

In paragraph 1, the description of the entity to which the Board may decide to apply the requirement was expanded from an entity referred to in Article 2, point (b), to also cover a financial institution referred to in Article 2, point (c), and the phrase describing consultation with competent authorities was reworded from consulting to having consulted.

A new paragraph 4 was added addressing situations where, under the global resolution strategy, subsidiaries established in the Union or a Union parent undertaking and its subsidiary institutions are not resolution entities and the members of the European resolution college agree with that strategy, setting out that such subsidiaries or the Union parent undertaking shall comply with the Article 12a(1) requirement by issuing the instruments referred to in paragraph 2, points (a) and (b), to the ultimate parent undertaking established in a third country, to its subsidiaries established in the same third country, or to other entities under the conditions set out in paragraph 2, points (a)(i) and (b)(ii).

Cited: Art. 12g, v1 · Art. 12g, v2

text before / after

02014R0806-2025111002014R0806-20260611

Article 12g Application of the minimum requirement for own funds and eligible liabilities to entities that are not themselves resolution entities 1. Institutions that are subsidiaries of a resolution entity or of a third-country entity, but are not themselves resolution entities, shall comply with the requirements laid down in Article 12d on an individual basis. The Board, after consulting having consulted the competent authorities, including the ECB, may decide to apply the requirement laid down in this Article to an entity as referred to in Article 2, point (b) of (b), or to a financial institution as referred to in Article 2 2, point (c), that is a subsidiary of a resolution entity but is not itself a resolution entity. By way of derogation from the first subparagraph of this paragraph, Union parent undertakings that are not themselves resolution entities, but are subsidiaries of third-country entities, … 1,467 unchanged words … Board, the resolution entity shall provide an independent written and reasoned legal opinion or shall otherwise satisfactorily demonstrate that there are no legal, regulatory or operational barriers to the transfer of collateral from the resolution entity to the relevant subsidiary.4. Where in accordance with the global resolution strategy subsidiaries established in the Union, or a Union parent undertaking and its subsidiary institutions, are not resolution entities and the members of the European resolution college, where established pursuant to Article 89 of Directive 2014/59/EU, agree with that strategy, subsidiaries established in the Union or, on a consolidated basis, the Union parent undertaking shall comply with the requirement of Article 12a(1) of this Regulation by issuing the instruments referred to in paragraph 2, points (a) and (b), of this Article, to any of the following: (a) their ultimate parent undertaking established in a third country; (b) the subsidiaries of that ultimate parent undertaking that are established in the same third country; (c) other entities under the conditions set out in paragraph 2, points (a)(i) and (b)(ii), of this Article.

in force 2024-05-13 MODIFIED

Amended by Directive (EU) 2024/1174 32024L1174

applies from: unchanged

A new subparagraph is inserted into paragraph 1 allowing the Board to decide to determine the Article 12d requirement on a consolidated basis, rather than an individual basis, for certain subsidiaries, setting out conditions relating to the subsidiary's status, the effect of deductions under Article 72e(5) of Regulation (EU) No 575/2013, its treatment under Article 104a of Directive 2013/36/EU, and whether such consolidated treatment would materially impair the group resolution strategy, the subsidiary's capacity to meet own funds requirements after write-down or conversion, or the internal loss transfer and recapitalisation mechanism.

Two new paragraphs, 2a and 2b, are added specifying which liabilities issued by a Union-established subsidiary included in the consolidation are to be included in the consolidated own funds and eligible liabilities amount, and capping the amount of such liabilities by reference to the subsidiary's own requirement under Article 12(1) minus liabilities held within the consolidation and own funds issued under paragraph 2, point (b).

The earlier version of Article 12g contained no such consolidated-basis derogation for individual subsidiaries and no equivalent paragraphs 2a or 2b.

Cited: Art. 12g, v2 · Art. 12g, v1

text before / after, on the event page →

in force 2020-12-28 INSERTED

Amended by Regulation (EU) 2019/877 32019R0877

applies from: unknown (an inserted provision states its own application date only in prose)

Sources disagree about what is listed, not about the text — the text comparison found this change; the EU's own amendment metadata does not list it and the amending act's instructions do not mention it. All are shown; none is overruled.

Article 12g is a new provision setting out how institutions that are subsidiaries of a resolution entity, but are not themselves resolution entities, must comply with own funds and eligible liabilities requirements, including on an individual or consolidated basis depending on the case described.

It further specifies the categories of liabilities and own funds that can be used to meet the requirement referred to in Article 12a(1), and the conditions under which the Board may permit the requirement to be met in whole or in part through a guarantee provided by the resolution entity.

Cited: Art. 12g, v2

text before / after, on the event page →