(1)

Article 55(1) of Directive 2014/59/EU provides that under certain conditions Member States are to require institutions and entities referred to in Article 1(1), points (b), (c) and (d), of that Directive to include a contractual term by which the counterparty to an agreement or instrument creating the liability recognises that that liability may be subject to the write down and conversion powers.

(2)

Article 55(2), first subparagraph, of Directive 2014/59/EU requires Member States to ensure that where such an institution or entity reaches the determination that it is legally or otherwise impracticable to include such a term (‘determination of impracticability of contractual recognition’), that institution or entity is to notify its determination to the resolution authority.

(3)

The Commission is to adopt implementing technical standards to specify uniform formats and templates for such notification to resolution authorities.

(4)

Uniform formats and templates for the notification of determination of impracticability of contractual recognition should be designed in such a way that they ensure a meaningful and uniform assessment of such determination by resolution authorities across the Union.

(5)

To enhance the data quality and ensure comparability, the data items set out in the notification templates should comply with the single data point model. Use of the single data point model is a widespread practice in supervisory reporting. The single data point model should consist of a structural representation of the data items, and identify all relevant business concepts for uniform notification of the determination of impracticability of contractual recognition.

(6)

In order to safeguard the quality, consistency and accuracy of data items notified, the data items should be subject to common validation rules.

(7)

Due to their very nature, validation rules and data point definitions are updated regularly in order to ensure they comply, at all times, with applicable regulatory, analytical and information technology requirements. Stringent qualitative criteria should be established for the detailed single data point model and the detailed common validation rules which will be published electronically by the European Banking Authority on its website.

(8)

This Regulation is based on the draft implementing technical standards submitted to the Commission by the European Banking Authority.

(9)

The European Banking Authority has conducted open public consultations on the draft implementing standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Banking Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council (2),