PwC's Managing upstream risk: Regulatory reform review - An asian perspective December 2013 | Page 18

2.3 Recovery and Resolution

2.4 UCITS V

Update

Update

On 11 December 2013, after a round of latenight talks, the European Parliament and
EU member states crafted a political deal on
the Bank Recovery and Resolution Directive
(BRRD) which provides a legal framework to
deal with bank failures across all 28 EU member
states from 1 January 2015 onwards. The
BRRD, an intermediate step towards the Single
Resolution Mechanism (SRM), introduces a
bail-in principle that will apply from January
2016 ensuring that shareholders and creditors
will be the first in line to take a hit in case a
bank fails and not taxpayers. Its provisions
would be enforced by a resolution authority. For
each member state, national resolution funds
will be put in place that will help wind down or
recover a bank.

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Regulatory Reform Review | Banking

On 4 December 2013, the European Council
agreed its position on the draft UCITS V
Directive including its remuneration provisions
which will have implications for all European
asset managers. This now paves the way for
trilogue negotiations to begin on a final text for
the Directive (the aim would be to finalise this
process before the EU elections in May 2014).