Resolution aspects of the EU Risk Reduction Measures Package

The Association for Financial Markets in Europe (AFME) welcomes the efforts of the co-legislators to move ahead to the trilogue phase in the Risk Reduction Measures (RRM) package. This paper sets out our views on the resolution aspects of the proposals following the European Parliament’s Final Report, and the Council of the European Union’s General Approach. There are several key topics relevant to resolution within the package, including the implementation of the FSB Total Loss-Absorbing Capacity (TLAC) Standard, 2amendments to the Minimum Requirement for own funds and Eligible Liabilities (MREL), and other issues such as the provisions for a new pre-resolution moratorium tool.