in force 2022-08-12 INSERTED+1,707 −0§
Amended by Regulation (EU) 2021/23 32021R0023
applies from: unknown (an inserted provision states its own application date only in prose)
This article is entirely new text, introducing a power for the competent authority to require a CCP to refrain from dividend distributions, share buy-backs, or creation of certain variable remuneration, pension or severance obligations for a period it specifies, capped at five years, in the case of a significant non-default event as defined in Regulation (EU) 2021/23.
It also sets out an exception where the CCP has a pre-existing legal obligation to act, a discretionary waiver power for the competent authority, and a mandate for ESMA to draft guidelines by 12 February 2022 further specifying when the restrictions may be imposed.
Cited: Art. 45a, v2
text before / after
inserted text (02012R0648-20220812)
Article 45a Temporary restrictions in the case of a significant non-default event 1. In the case of a significant non-default event as defined in point (9) of Article 2 of Regulation (EU) 2021/23, the competent authority may require the CCP to refrain from any of the following actions for a period specified by the competent authority, that cannot exceed five years: (a) making a dividend distribution or give an irrevocable commitment to make a dividend distribution, except for rights to dividends specifically referred to in Regulation (EU) 2021/23 as a form of compensation; (b) buy-back of ordinary shares; (c) creating an obligation to pay variable remuneration as defined by the CCP’s remuneration policy pursuant to Article 26(5) of this Regulation, discretionary pension benefits or severance packages to senior management as defined in point 29 of Article 2 of this Regulation. The competent authority shall not restrict the CCP from undertaking any of the actions referred to in the first subparagraph, if the CCP is legally obliged to undertake that action and the obligation predates the events pursuant to the first subparagraph. 2. The competent authority may decide to waive the restrictions in paragraph 1 where it deems that waiving those restrictions would not reduce the quantity or availability of the CCP’s own resources, in particular own resources available for use as a recovery measure. 3. ESMA shall by 12 February 2022 draft guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010 further specifying the circumstances in which the competent authority may require the CCP to refrain from undertaking any of the actions referred to in paragraph 1 of this Article.