On September 12, 2016, entered into force the European Commission delegated Regulation No. 2016/1401/EU that implements Regulatory Technical Standards (“RTS”) for methodologies and principles on the valuation of liabilities arising from derivatives, within the framework for the recovery and resolution of credit institutions and investment firms.
The RTS have direct impact in Portugal and in all other Member States of the EU, and apply to derivative contracts and compensation arrangements in which one or both parties is a credit institution governed by EU subject to the Directive on recovery and resolution of credit institutions (2014/59/EU) ("Directive"). The Directive 2014/59/EU provides the resolution authorities with the legal power to convert the liabilities of an institution into equity.
Should you wish to receive additional information, please contact: