On 06 June 2012 the European Commission published its long-awaited proposal for an EU Directive to create a framework for the recovery and resolution of banks and investment firms in the EU.
The draft Directive is the first major step towards a harmonised European Union regime for resolving failing banks and investment firms. But it is also only the first of a number of steps that will need to be taken to ensure that, when the next financial crisis hits, complex cross-border banking and investment services groups (and particularly those of the 'too big to fail' variety) will be more readily resolvable than is currently the case.
In this publication, we provide an overview of the key provisions of the draft Directive, together with our initial thoughts on the practical issues that banks and investment firms operating in the EU should start to consider as the Commission's proposals develop.
Jan Putnis (partner), Ben Kingsley (partner), James Nguyen (associate), Tolek Petch (associate)
Publications and seminars landing page