Legal provisions of COM(2015)586 - Amendment of Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2015)586 - Amendment of Regulation (EU) 806/2014 in order to establish a European Deposit Insurance Scheme. |
|---|---|
| document | COM(2015)586  |
| date | November 24, 2015 |
Contents
Article 1 - Amendments to Regulation (EU) No 806/2014
1. the title is replaced by the following:
"REGULATION (EU) No 806/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 15 July 2014 on a Single Resolution Mechanism and a European Deposit Insurance Scheme and amending Regulation (EU) No 1093/2010";
2. Article 1 is replaced by the following:
“Article 1
Subject matter
1. This Regulation establishes uniform rules and a uniform procedure for the resolution of the entities referred to in Article 2 that are established in the participating Member States referred to in Article 4.
Those uniform rules and that uniform procedure shall be applied by the Single Resolution Board established in accordance with Article 42 (the ‘Board’), together with the Council and the Commission and the national resolution authorities within the framework of the Single Resolution Mechanism (‘SRM’) established by this Regulation. The SRM shall be supported by a Single Resolution Fund (the SRF’).
The use of the SRF shall be contingent upon the entry into force of an agreement among the participating Member States (‘the Agreement’) on transferring the funds raised at national level towards the SRF as well as on a progressive merger of the different funds raised at national level to be allocated to national compartments of the Fund.
2. In addition, this Regulation establishes a European Deposit Insurance Scheme ('EDIS') in three successive stages:
– a reinsurance scheme that, to a certain extent, provides funding and covers a share of the losses of participating deposit guarantee schemes in accordance with Article 41a;
– a co-insurance scheme that, to a gradually increasing extent, provides funding and covers losses of participating deposit guarantee schemes in accordance with Article 41c;
– a full insurance scheme that provides the funding and covers the losses of participating deposit guarantee schemes in accordance with Article 41e.
EDIS shall be administered by the Board in cooperation with participating DGSs and designated authorities in accordance with Part IIa. EDIS shall be supported by a Deposit Insurance Fund (the ‘DIF’)."
3. Article 2 is replaced by the following:
Article 2 - Scope
(a)credit institutions established in a participating Member State;
(b)parent undertakings, including financial holding companies and mixed financial holding companies, established in a participating Member State, where they are subject to consolidated supervision carried out by the ECB in accordance with Article 4(1)(g) of Regulation (EU) No 1024/2013;
(c)investment firms and financial institutions established in a participating Member State, where they are covered by the consolidated supervision of the parent undertaking carried out by the ECB in accordance with Article 4(1)(g) of Regulation (EU) No 1024/2013.
2. For the purposes of EDIS, this Regulation shall apply to the following entities:
(a)participating deposit-guarantee schemes as defined in point (1) of Article 3(1a);
(b)credit institutions affiliated to participating deposit-guarantee schemes.
Where this Regulation creates rights or obligations for a participating DGS administered by a designated authority as defined in point (18) of Article 2(1) of Directive 2014/49/EU, the rights or obligations are deemed to be those of the designated authority.";
4. Article 3 is amended as follows:
(a)in paragraph 1, the following points (55), (56) and (57) are added:
"(55)'participating deposit-guarantee schemes' or participating DGSs means deposit guarantee schemes as defined in point (1) of Article 2(1) of Directive 2014/49/EU which are introduced and officially recognised in a participating Member State;
(56) payout event means the occurrence unavailable deposits as defined in point (8) of Article 2(1) of Directive 2014/49/EU in relation to a credit institution affiliated to a participating DGS;
(57) available financial means of the DIF means cash, deposits and low-risk assets which can be liquidated within a period not exceeding that referred to in Article 8(1) of the Directive 2014/49/EU.";
(a)paragraph 2 is replaced by the following:
"2. In the absence of a relevant definition in the previous paragraphs, the definitions set out in Article 2 of Directive 2014/49/EU and Article 2 of Directive 2014/59/EU apply.
In the absence of a relevant definition in Article 2 of Directive 2014/49/EU and Article 2 of the Directive 2014/59/EU, the definitions set out in Article 3 of Directive 2013/36/EU apply."
5. in Article 4, paragraphs 2, 3 and 4 are replaced by the following :
"2. Where the close cooperation between a Member State and the ECB is suspended or terminated in accordance with Article 7 of Regulation (EU) No 1024/2013, the entities referred to in Article 2 of this Regulation that are established or recognised in that Member State shall cease to be covered by this Regulation from the date of application of the decision to suspend or terminate close cooperation.
3. In the event that the close cooperation with the ECB of a Member State whose currency is not the euro is terminated in accordance with Article 7 of Regulation (EU) No 1024/2013, the Board shall decide within three months after the date of adoption of the decision to terminate close cooperation, in agreement with that Member State, on the modalities for, and any conditions applicable to:
(a)the recoupment of contributions that the Member State concerned has transferred to the SRF;
(b)the transfer of contributions to DGSs officially recognised in the Member State concerned that were paid into the DIF by the credit institutions affiliated to those DGSs.
For the purposes of point (a) of the first subparagraph, recoupments shall include the part of the compartment corresponding to the Member State concerned not subject to mutualisation. If during the transitional period, as laid down in the Agreement, recoupments of the nonmutualised part are not sufficient to permit the funding of the establishment by the Member State concerned of its national financial arrangement in accordance with Directive 2014/59/EU, recoupments shall also include the totality or a part of the part of the compartment corresponding to that Member State subject to mutualisation in accordance with the Agreement or otherwise, after the transitional period, the totality or a part of the contributions transferred by the Member State concerned during the close cooperation, in an amount sufficient to permit the funding of that national financial arrangement.
When assessing the amount of financial means to be recouped from the mutualised part or otherwise, after the transitional period, from the Fund, the following additional criteria shall be taken into account:
(a)the manner in which termination of close cooperation with the ECB has taken place, whether voluntarily, in accordance with Article 7(6) of Regulation (EU) No 1024/2013, or not;
(b)the existence of ongoing resolution actions on the date of termination;
(c)the economic cycle of the Member State concerned by the termination.
Recoupments shall be distributed during a limited period commensurate to the duration of the close cooperation. The relevant Member State's share of the financial means from the SRF used for resolution actions during the period of close cooperation shall be deducted from those recoupments.
For the purposes of point (b) of the first subparagraph, the amount transferred to each DGS officially recognised in the Member State concerned shall be equal to the available financial means of the DIF multiplied by the ratio of (a) to (b):
(a)the amount of all ex-ante contributions paid to the DIF by credit institutions affiliated to the DGS concerned;
(b)the amount of all ex-ante contributions paid to the DIF.
The transferred amount shall not exceed the amount that is necessary for the available financial means of the DGS concerned to reach two-thirds of its target level as defined in Article 10(2) first subparagraph of Directive 2014/49/EU.
4. This Regulation shall continue to apply to resolution and deposit insurance proceedings which are ongoing on the date of application of a decision as referred to in paragraph 2.";
6. in Article 5(2), the first subparagraph is replaced by the following:
"The Board, the Council and the Commission and, where relevant, the national resolution authorities and participating DGS, shall take decisions subject to and in compliance with the relevant Union law and in particular any legislative and non–legislative acts, including those referred to in Articles 290 and 291 of the Treaty on the Functioning of the European Union.";
7. Article 6 is amended as follows:
(a)paragraphs 1 and 2 are replaced by the following:
"1. No action, proposal or policy of the Board, the Council, the Commission, a national resolution authority or a participating DGS shall discriminate against entities, deposit holders, investors or other creditors established in the Union on grounds of their nationality or place of business.
2. Every action, proposal or policy of the Board, the Council, the Commission, a national resolution authority or a participating DGS in the framework of the SRM or of EDIS shall be undertaken with full regard and duty of care for the unity and integrity of the internal market.";
(b)paragraph 7 is replaced by the following:
"7. Where the Board takes a decision that is addressed to a national resolution authority or a participating DGS, the national resolution authority or participating DGS shall have the right to specify further the measures to be taken. Such specifications shall comply with the decision of the Board in question.";
8. the heading of Part II is replaced by the following: 'Single Resolution Mechanism';
9. Article 19 is amended as follows:
(a)in paragraph 3, the first subparagraph is replaced by the following:
"To the extent that the resolution action as proposed by the Board involves the use of the Funds (SRF or DIF), the Board shall notify the Commission of the proposed use of the Funds. The Board's notification shall include all of the information necessary to enable the Commission to make its assessments pursuant to this paragraph.";
(b)in paragraph 3, in the third, the fifth and the seventh subparagraphs the word 'Fund' is replaced by 'Funds', making such grammar changes as necessary;
(c)in paragraph 5, the second subparagraph is replaced by the following:
"The Board shall pay any amounts received under the first subparagraph into the respective Fund (SRF or DIF) and take such amounts into consideration when determining contributions in accordance with Articles 70 and 71, and 74c and 74d.";
(d)in paragraphs 7 and 10, the word 'Fund' is replaced by the word 'Funds', making such grammar changes as necessary;
10. Part IIa is inserted as follows:
"PART IIa
EUROPEAN DEPOSIT INSURANCE SCHEME (EDIS)
TITLE I: STAGES OF EDIS
Chapter 1
Reinsurance
Article 41 - a Partial funding and excess loss cover
1. As from the date of application set out in Article 99(5a), participating DGSs are reinsured by EDIS in accordance with this Chapter for a period of three years (‘reinsurance period’).2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 79 of this Regulation, it may claim funding from the DIF of up to 20% of its liquidity shortfall as set out in Article 41b.
3. The DIF shall also cover 20% of the excess loss of the participating DGS as set out in Article 41c. The participating DGS shall repay the amount of funding it obtained under paragraph 2 of this Article, less the amount of excess loss cover, in accordance with the procedure set out in Article 41o.
4. Neither the funding nor the excess loss cover shall exceed the lower of 20% of the initial target level of the DIF as set out in Article 74b(1) of this Regulation and 10 times the target level of the participating DGS as defined in the first subparagraph of Article 10(2) of Directive 2014/49/EU.
Article 41 - b Liquidity shortfall
1. In case the participating DGS encounters a payout event, its liquidity shortfall shall be calculated as the total amount of covered deposits within the meaning of Article 6(1) of the Directive 2014/49/EU that is held by the credit institution at the time of the payout event less:(a)the amount of available financial means the participating DGS should have at the time of the payout event if it had raised ex-ante contributions in accordance with Article 41j;
(b)the amount of extraordinary contributions as defined in Article 10(8) of the Directive 2014/49/EU the participating DGS can raise within three days from the payout event.
2. In case the participating DGS is used in resolution proceedings, its liquidity shortfall shall be the amount determined by the resolution authority in accordance with Article 79 less the amount of available financial means the participating DGS should have at the time of the determination if it had raised ex-ante contributions in accordance with Article 41j.
Article 41 - c Excess loss
1. In case the participating DGS encounters a payout event, its excess loss shall be calculated as the total amount it repaid to depositors in accordance with Article 8 of Directive 2014/49/EU less:(a) the amount the participating DGS recovered from subrogating to the rights of depositors in winding up or reorganisation proceedings under the first sentence of Article 9(2) of Directive 2014/49/EU;
(b)the amount of available financial means the participating DGS should have at the time of the payout event if it had raised ex-ante contributions in accordance with Article 41j;
(c)the amount of ex-post contributions the participating DGS may raise in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU within one calendar year, which shall contain the amount raised in accordance with point (b) of Article 41b(1) of this Regulation.
2. In case the funds of the participating DGS are used in resolution proceedings, its excess loss shall be the amount determined by the resolution authority in accordance with Article 79 less:
(a)the amount of any difference the participating DGS was paid in accordance with Article 75 of Directive 2014/59/EU;
(b) the amount of available financial means the participating DGS should have at the time of the determination if it had raised ex-ante contributions in accordance with Article 41j.
Chapter 2
Co-insurance
Article 41 - d Funding and loss cover
1. As from the end of the re-insurance period, the participating DGS shall be co-insured by EDIS in accordance with this Chapter for a period of four years (‘co-insurance period’).2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it may claim funding from the DIF of a share of its liquidity need as defined in Article 41f of this Regulation. The share shall increase in accordance with Article 41e.
3. The DIF shall also cover a share of the loss of the participating DGS as defined by Article 41g. The share shall increase in accordance with Article 41e. The participating DGS shall repay the amount of funding it obtained under paragraph 2, less the amount of loss cover, in accordance with the procedure set out in Article 41o.
Article 41 - e Increase of funding and loss cover
The share of coverage under the second and third paragraph of Article 41d shall increase during the co-insurance period as follows:– in the first year of the co-insurance period it shall be 20%;
– in the second year of the co-insurance period it shall 40%;
– in the third year of the co-insurance period it shall be 60%;
– in the fourth year of the co-insurance period it shall be 80%.
Article 41 - f Liquidity need
1. In case the participating DGS encounters a payout event, its liquidity need shall be deemed to be the total amount of covered deposits within the meaning of Article 6(1) of Directive 2014/49/EU that is held in the credit institution at the time of the payout event.2. In case the participating DGS is used in resolution proceedings, its liquidity need shall be the amount determined by the resolution authority in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation.
Article 41 - g Loss
1. In case the participating DGS encounters a payout event, its loss shall be the total amount it repaid to depositors in accordance with Article 8 of Directive 2014/49/EU less the amount the participating DGS recovered from subrogating to the rights of depositors in winding up or reorganisation proceedings under the first sentence of Article 9(2) of the Directive 2014/49/EU.2. In case the participating DGS is used in resolution proceedings, its loss shall be the amount determined by the resolution authority in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation less the amount of any difference the participating DGS was paid in accordance with Article 75 of Directive 2014/59/EU.
Chapter 3
Full insurance
Article 41 - h Funding and loss cover
1. As from the end of the co-insurance period, the participating DGS shall be fully insured by EDIS in accordance with this Chapter.2. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it may claim funding from the DIF for its liquidity need as defined by Article 41f of this Regulation.
3. The DIF shall also cover the loss of the participating DGS as defined by Article 41g. The participating DGS shall repay the amount of funding it obtained under paragraph 2, less the amount of loss cover, in accordance with the procedure set out in Article 41o.
Chapter 4
Common provisions
Article 41 - i Disqualification from coverage by EDIS
1. A participating DGS shall not be covered by EDIS in the reinsurance, co-insurance or full insurance phase, if the Commission, acting on its own initiative or upon a request of the Board or a participating Member State, decides and informs the Board accordingly that at least one of the following disqualifying conditions is met:(a)the participating DGS has failed to comply with the obligations under this Regulation or Articles 4, 6, 7 or 10 of Directive 2014/49/EU;
(b)the participating DGS, the relevant administrative authority within the meaning of Article 3 of Directive 2014/49/EU, or any other relevant authority of the respective Member State have, in relation to a particular request for coverage by EDIS, acted in a way that runs counter to the principle of sincere cooperation as laid down in Article 4(3) of the Treaty on European Union.
2. When funding has already been obtained by a participating DGS and at least one of the disqualifying conditions referred to in paragraph 1 is met in relation to a payout event or a use in resolution, the Commission may order full or partial repayment of the funding to the DIF.
Article 41 - j Funding path to be followed by participating DGSs
1. A participating DGS shall only be reinsured, co-insured or fully insured by EDIS during the year following any of the dates set out below, if, by that date, its available financial means raised by contributions referred to in Article 10(1) of Directive 2014/49/EU amount to at least the following percentages of the total amount of covered deposits of all credit institutions affiliated to the participating DGS:– by 3 July 2017: 0.14%;
– by 3 July 2018: 0.21%;
– by 3 July 2019: 0.28%;
– by 3 July 2020: 0.28%;
– by 3 July 2021: 0.26%;
– by 3 July 2022: 0.20%;
– by 3 July 2023: 0.11%;
– by 3 July 2024: 0%.
2. The Commission, after consulting the Board, may approve a derogation from the requirements set out in paragraph 1 for duly justified reasons linked to the business cycle in the respective Member State, the impact pro-cyclical contributions may have, or to a payout event which occurred at national level. Those derogations must be temporary and may be subject to the fulfilment of certain conditions.
TITLE II - PROCEDURAL PROVISIONS
Article 41 - k Preliminary information
Where a participating DGS has been informed by the competent authority about, or has otherwise become aware of, circumstances relating to a credit institution affiliated to that participating DGS that are likely to result in a payout event or its use in resolution proceedings, it shall inform the Board about such circumstances without delay if it intends to request coverage by EDIS. In this case the participating DGS shall also provide the Board with an estimate of the expected liquidity shortfall or liquidity need.Article 41 - l Duty to notify
1. In case a participating DGS encounters a payout event or is used in resolution in accordance with Article 109 of Directive 2014/59/EU or Article 79 of this Regulation, it shall immediately notify the Board and submit all necessary information in order to allow the Board to assess whether the conditions for the provision of funding and loss cover in accordance with Article 41a, 41d and 41h of this Regulation are met.2. The participating DGS shall inform the Board in particular about:
(a)the amount of covered deposits of the credit institution concerned;
(b)its available financial means at the time of the payout event or use in resolution;
(c)in case of a payout event, an estimate of the extraordinary contributions it can raise within three days from that event;
(d)any circumstances which would prevent it from meeting its obligations under national law transposing Directive 2014/49/EU and possible remedies.
Article 41 - m Determination of the amount of funding
1. After receiving the notification under Article 41k, the Board shall decide within 24 hours, in its executive session, that the conditions for coverage by EDIS have been met and shall determine the amount of funding that it will provide to the participating DGS.2. In case the Board was informed in accordance with Article 41k, prior to, or simultaneously with, the notification referred to in paragraph 1, about one or more other likely payout events or uses in resolution, it may extend the period of paragraph 1 up to seven days. If, during this extended period, additional payout events or uses in resolution are notified in accordance with Article 41k and the total funding that could be claimed from the DIF might exceed its available financial means, the funding provided for each notified payout event or use in resolution shall be equal to the available financial means of the DIF multiplied by the ratio of (a) to (b):
(a)the amount of funding that the relevant participating DGS could claim from the DIF for the payout event or use in resolution if there were no other notified payout event or use in resolution;
(b)the sum of all amounts of funding that each relevant participating DGS could claim from the DIF for each payout event or use in resolution if there were no other notified payout event or use in resolution.
3. The Board shall immediately inform the participating DGS about its decision under paragraphs 1 and 2. The participating DGS may request a review of the Board’s decision within 24 hours after it has been informed. It shall state the reasons why it considers an amendment to the Board’s decision necessary, in particular with respect to the extent of coverage by EDIS. The Board shall take a decision on the request within another 24 hours.
Article 41 - n Provision of funding
The Board shall provide funding under Articles 41a(2), 41d(2) and 41h(2) in accordance with the following provisions:(a)the funding shall be provided in the form of a cash contribution to the participating DGS;
(b)the funds shall be due immediately after the determination of the Board in Article 41m.
Article 41 - o Repayment of funding and determination of excess loss and loss
1. The participating DGS shall repay the funding provided by the Board under Article 41n, less the amount of any excess loss cover in case of coverage under Article 41a or any loss cover in case of coverage under Article 41d or Article 41h.2. Until the termination of the insolvency or resolution procedure, the Board shall determine, on an annual basis, the amount the participating DGS has already recovered from the insolvency procedure or has already been paid in accordance with Article 75 of Directive 2014/59/EU. The participating DGS shall provide to the Board all information necessary to make this determination. The participating DGS shall pay to the Board a share of that amount which corresponds to the share that is covered by EDIS in accordance with Article 41a, Article 41d or Article 41h.
3. In case of coverage under Article 41a, the participating DGS shall also pay to the Board, by the end of the first calendar year after the funding was provided, an amount equal to the ex-post contributions that the participating DGS may raise within one calendar year in accordance with the first sentence of the first subparagraph of Article 10(8) of Directive 2014/49/EU, less the amount of ex-post contributions it raised in accordance with point (b) of Article 41b(1) of this Regulation.
4. After the termination of the insolvency procedure or resolution procedure of the credit institution concerned, the Board shall without delay determine the excess loss in accordance with Article 41d or the loss in accordance with Article 41h. Where this determination results in a repayment obligation of the participating DGS that differs from the amounts repaid in accordance with the second and third paragraph, the difference shall be settled between the Board and the participating DGS without delay.
Article 41 - p Monitoring of payouts to depositors and use in resolution
1. Following the provision of funding in case of a payout event in accordance with Article 41n, the Board shall closely monitor the payout procedure conducted by the participating DGS and in particular its use of the cash contribution.2. The participating DGS shall provide, at regular intervals established by the Board, accurate, reliable and complete information on the payout procedure, the exercise of the rights it subrogated into, or any other matter that is relevant for the effective implementation of the Board’s actions provided for in this Regulation or for the exercise of the powers of the participating DGS in the Directive 2014/49/EU or this Regulation. The participating DGS shall inform the Board, on a daily basis, about the total amount repaid to depositors, the use of the cash contribution, and any difficulties it encountered.
Article 41 - q Monitoring of insolvency procedure
1. Following the provision of funding in case of a payout event in accordance with Article 41n of this Regulation, the Board shall monitor the insolvency procedure of the credit institution concerned and in particular the participating DGS’s efforts to collect on the deposit claims it subrogated to in accordance with the first sentence of Article 9(2) of Directive 2014/49/EU.2. The participating DGS shall maximise its proceeds from the insolvency estate and shall be liable towards the Board for any amounts not recovered due to a lack of diligence. The Board may decide, after hearing the participating DGS, to exercise itself all rights arising under the deposit claims mentioned in paragraph 1.";
11. Article 43 is amended as follows:
(a)in paragraph 1, the full stop at the end of point (c) is replaced by a semicolon and the following point (d) is added:
"(d) a member appointed by each participating Member State, representing their designated authority.";
(b)paragraph 2 is replaced by the following:
"2. Each member, including the Chair, shall have one vote except where the Board meets in the joint plenary session in accordance with Article 49b in which case the members appointed by a participating Member State under paragraph 1(c) and (d) shall together have one vote.";
(c)in paragraph 3, the first subparagraph is replaced by the following:
"The Commission and the ECB shall each designate a representative entitled to participate in the meetings of executive sessions, plenary sessions and joint plenary sessions as a permanent observer.";
(d)paragraphs 4 and 5 are replaced by the following:
"4. In the event of more than one national resolution authority or respectively more than one national designated authority in a participating Member State, a second representative shall be allowed to participate as observer without voting rights.
5. The Board's administrative and management structure shall comprise:
(a)a joint plenary session which shall perform the tasks referred to in Article 49b;
(b)a plenary session of the Board in accordance with Articles 49 and 49a, which shall perform the tasks referred to in Article 50 and respectively Article 50a;
(c)an executive session of the Board, which shall perform the tasks referred to in Article 54;
(d)a Chair, which shall perform the tasks referred to in Article 56;
(e)a Secretariat, which shall provide the necessary administrative and technical support on the performing of all the tasks assigned to the Board.";
12. Article 45 is amended as follows:
(a)in paragraphs 4 and 5, the words 'the resolutions tasks' are replaced by 'the resolution and the deposit insurance tasks', making such grammar changes as necessary;
(b)in paragraph 7, the words 'as a national resolution authority' are replaced by 'as a national resolution authority or as a national DGS or designated authority', making such grammar changes as necessary;
13. in Article 46(4), the words 'national resolution authorities' are replaced by 'national resolution authorities or of national DGS or designated authorities', making such grammar changes as necessary;
14. in Article 47, paragraph 1 is replaced by the following:
"1. When performing the tasks conferred on them by this Regulation, the Board, the national resolution authorities, the national DGS or designated authorities shall act independently and in the general interest.";
15. in Part III, the heading of Title II 'Plenary session of the Board' is replaced by 'Joint plenary session and plenary sessions of the Board';
16. the following Article 48a is inserted:
"Article 48 - a Participation in joint plenary sessions
All members of the Board referred to in Article 43(1) shall participate in its joint plenary sessions.";17. Article 49 is replaced by the following:
"Article 49 - Participation in plenary sessions relating to the Single Resolution Mechanism
The members of the Board referred to in points (a), (b) and (c) of Article 43(1) shall participate in its plenary sessions relating to the Single Resolution Mechanism (SRM plenary session).";18. the following Articles 49a and 49b are inserted:
"Article 49 - a Participation in plenary sessions relating to the European Deposit Insurance Scheme
The members of the Board referred to in points (a), (b) and (d) of Article 43(1) shall participate in its plenary sessions relating to EDIS (EDIS plenary session).Article 49 - b Tasks of the joint plenary session of the Board
1. In its joint plenary session, the Board shall:(a)adopt, by 30 November each year, the Board's annual work programme for the following year, based on a draft put forward by the Chair and shall transmit it for information to the European Parliament, the Council, the Commission, and the ECB;
(b)adopt and monitor the annual budget of the Board in accordance with Article 61(2), and approve the Board's final accounts and give discharge to the Chair in accordance with Article 63(4) and (8);
(c)decide on the investments in accordance with Article 75;
(d)adopt the annual activity report on the Board's activities referred to in Article 45, which shall present detailed explanations on the implementation of the budget;
(e)adopt the financial rules applicable to the Board in accordance with Article 64;
(f)adopt an anti-fraud strategy, proportionate to fraud risks taking into account the costs and benefits of the measures to be implemented;
(g)adopt rules for the prevention and management of conflicts of interest in respect of its members;
(h)adopt its rules of procedure and those of the Board in its plenary and executive sessions under this Regulation;
(i)in accordance with paragraph 3 of this Article, exercise, with respect to the staff of the Board, the powers conferred by the Staff Regulations on the Appointing Authority and by the Conditions of Employment of Other Servants of the European Union as laid down by Council Regulation (EEC, Euratom, ECSC) No 259/68 (''Conditions of Employment'') on the Board Empowered to Conclude a Contract of Employment ("the appointing authority powers");
(j)adopt appropriate implementing rules for giving effect to the Staff Regulations and the Conditions of Employment in accordance with Article 110 of the Staff Regulations;
(k)appoint an Accounting Officer, subject to the Staff Regulations and the Conditions of Employment, who shall be functionally independent in the performance of his or her duties;
(l)ensure adequate follow up to findings and recommendations stemming from the internal or external audit reports and evaluations, as well as from investigations of the European Anti-Fraud Office (OLAF);
(m)take all decisions on the establishment of the Board's internal structures and, where necessary, their modification.
2. When taking decisions, the joint plenary session of the Board shall act in accordance with the objectives as specified in Articles 6 and 14.
3. In its joint plenary session, the Board shall adopt, in accordance with Article 110 of the Staff Regulations, a decision based on Article 2(1) of the Staff Regulations and on Article 6 of the Conditions of Employment, delegating relevant appointing authority powers to the Chair and establishing the conditions under which the delegation of powers can be suspended. The Chair shall be authorised to sub–delegate those powers.
In exceptional circumstances, the Board in its joint plenary session may by way of a decision temporarily suspend the delegation of the appointing authority powers to the Chair and any sub delegation by the latter and exercise them itself or delegate them to one of its members or to a staff member other than the Chair.";
19. Article 50 is replaced by the following:
"Article 50 - Tasks of the Board in its SRM plenary session
1. In its SRM plenary session, the Board shall:(a)subject to the procedure referred to in paragraph 2, decide on the use of the Fund, if the support of the Fund in that specific resolution action is required above the threshold of EUR 5 000 000 000 for which the weighting of liquidity support is 0,5;
(b)once the net accumulated use of the Fund in the last consecutive 12 months reaches the threshold of EUR 5 000 000 000, evaluate the application of the resolution tools, in particular the use of the Fund, and provide guidance which the executive session shall follow in subsequent resolution decisions, in particular, if appropriate, differentiating between liquidity and other forms of support;
(c)decide on the necessity to raise extraordinary ex post contributions in accordance with Article 71, on the voluntary borrowing between financing arrangements in accordance with Article 72, on alternative financing means in accordance with Articles 73 and 74, and on the mutualisation of national financing arrangements in accordance with Article 78, involving support of the Fund above the threshold referred to in point (c) of this paragraph;
(d)approve the framework referred to in Article 31(1) to organise the practical arrangements for the cooperation with the national resolution authorities.
2. When taking decisions, the plenary session of the Board shall act in accordance with the objectives as specified in Articles 6 and 14.
For the purposes of point (a) of paragraph 1, the resolution scheme prepared by the executive session is deemed to be adopted unless, within three hours from the submission of the draft by the executive session to the plenary session, at least one member of the plenary session has called a meeting of the plenary session. In the latter case, a decision on the resolution scheme shall be taken by the plenary session.";
20. The following Article 50a is inserted:
"Article 50 - a Tasks of the Board in its EDIS plenary session
1. In its EDIS plenary session, the Board shall:(a)once the net accumulated use of the DIF in the last consecutive 12 months reaches the threshold of 25% of the final target level, evaluate the application of EDIS, in particular the use of the DIF, and provide guidance which the executive session shall follow in subsequent payout decisions, in particular, if appropriate, differentiating between the provision of funding and loss cover;
(b)decide on the extension of the period referred to in Article 41m(1) in accordance with Article 41m(2);
(c)decide on the voluntary borrowing between financing arrangements in accordance with Article 74f, on alternative funding means in accordance with Articles 74g;
(d)decide, upon referral of the executive session in cases of paragraph 1 or 2 of Article 41i, whether the disqualifying condition laid down in point (b) of Article 41i(1) is met.
2. When taking decisions, the plenary session of the Board shall act in accordance with the objectives specified Article 6.";
21. Article 51 is replaced by the following:
"Article 51
Meetings of the joint plenary and the SRM and EDIS plenary sessions of the Board
1. The Chair shall convene and chair meetings of the joint plenary and the SRM and EDIS plenary sessions of the Board in accordance with point (a) of Article 56(2).
2. The Board, in its joint plenary session, shall hold at least two ordinary meetings per year. In addition, it shall meet on the initiative of the Chair, or at the request of at least one third of its members. The representative of the Commission may request the Chair to convene a meeting of the Board in its joint plenary or respectively SRM or EDIS plenary session. The Chair shall provide reasons in writing if he or she does not convene a meeting in due time.
3. Where relevant, the Board may invite observers in addition to those referred in Article 43(3) to participate in the meetings of its joint plenary or respectively SRM or EDIS plenary session on an ad hoc basis, including a representative of EBA.
4. The Board shall provide for the secretariat of the joint plenary or plenary session of the Board.";
22. Article 52 is replaced by the following:
"Article 52
General provisions on the decision-making process
1. The Board, in its joint plenary or respectively SRM or EDIS plenary session, shall take its decisions by a simple majority of its members, unless otherwise provided for in this Regulation. Each voting member shall have one vote. In the event of a tie, the Chair shall have a casting vote.
2. By way of derogation from paragraph 1, decisions referred to in points (a) and (b) of Article 50(1), point (a) of Article 50a(1) as well as on the mutualisation of national financing arrangements in accordance with Article 78, limited to the use of the financial means available in the SRF or respectively in the DIF, shall be taken by a simple majority of the Board members, representing at least 30 % of contributions. Each voting member shall have one vote. In the event of a tie, the Chair shall have a casting vote.
3. By way of derogation from paragraph 1 of this Article, decisions referred to in Article 50(1) or Article 50a(1), which involve the raising of ex-post contributions in accordance with Article 71 or Article 74d, on voluntary borrowing between financing arrangements in accordance with Article 72 or Article 74f, on alternative financing means in accordance with Article 73, Article 74 or Article 74g, as well as on the mutualisation of national financing arrangements in accordance with Article 78, exceeding the use of the financial means available in the SRF or in the DIF, shall be taken by a majority of two thirds of the Board members, representing at least 50 % of contributions during the transitional period until the SRF is fully mutualised and respectively the DIF has reached its final target level and by a majority of two thirds of the Board members, representing at least 30 % of contributions from then on. Each voting member shall have one vote. In the event of a tie, the Chair shall have a casting vote.
4. By way of derogation from paragraph 1 of this Article, the decision referred to in point (d) of Article 50a(1) shall be taken by a majority of two thirds of the Board members. Each voting member shall have one vote. In the event of a tie, the Chair shall have a casting vote.
5. The Board shall adopt and make public its rules of procedure. The rules of procedure shall establish more detailed voting arrangements, in particular the circumstances in which a member may act on behalf of another member and including, where appropriate, the rules governing quorums.";
23. Article 53 is amended as follows:
(a)in paragraph 1, in the third subparagraph the words 'national resolution authorities' are replaced by 'national resolution authorities or national designated authorities', making such grammar changes as necessary;
(b)in paragraph 2, the reference to 'Article 43(1)(c)' is replaced by the following: 'Article 43(1)(c) or where relevant Article 43(1)(d)';
(c)paragraph 3 is replaced by the following:
"3.When deliberating on an entity referred to in Article 2 or a group of entities established only in one participating Member State or on a deposit insurance action or decision, the relevant member appointed by that Member State under Article 43(1)(c) or 43(1)(d) shall also participate in the deliberations and in the decision-making process, and the rules laid down in Article 55(1) shall apply.";
(d)paragraph 5 is replaced by the following:
"5. The members of the Board referred to in Article 43(1)(a) and (b) shall ensure that the resolution and deposit insurance decisions and actions, in particular with regard to the use of the SRF and respectively of the DIF, across the different formations of the executive sessions of the Board, are coherent, appropriate and proportionate.";
24. Article 54 is amended as follows:
(a)paragraph 1 is replaced by the following:
"1.The Board, in its executive session, shall:
(a)prepare all of the decisions to be adopted by the Board in its joint plenary or its SRM and EDIS plenary sessions, respectively;
(b)take all of the decisions to implement this Regulation, unless this Regulation provides otherwise.";
(b)in paragraph 2, the full stop at the end of point (e) is replaced by a semicolon and the following points are added:
"(f)determine the amount of funding in accordance with Article 41l;
(g) determine the payout loss and loss cover in accordance with Article 41o;
(h)decide to exercise the rights arsing under Article 41q.";
(c)paragraphs 3 and 4 are replaced by the following:
"3. Where necessary because of urgency, the Board in its executive session may take certain provisional decisions on behalf of the Board in its joint plenary or its SRM and EDIS plenary sessions respectively, in particular on administrative management matters, including budgetary matters.
4. The Board in its executive session shall keep the Board in its joint plenary or its SRM and EDIS plenary sessions respectively informed of the decisions it takes on resolution or deposit insurance.";
25. Article 56 is amended as follows:
(a)in paragraph 1:
(i) point (a) is replaced by the following:
"(a) preparing the work of the Board, in its joint plenary, plenary and executive sessions, and convening and chairing its meetings;";
(ii) in point (g), the words 'on the resolution activities' are replaced by 'on the resolution and on the deposit insurance activities', making such grammar changes as necessary;
(b)in paragraph 4, in the first sentence the words 'bank resolution' are replaced by 'bank resolution and deposit guarantee', making such grammar changes as necessary;
26. in Article 58, paragraph 3 is replaced by the following:
"3.The budget shall comprise three parts: Part I for the administration of the Board, Part II for the SRF and Part III for the DIF.".
27. in Article 59, paragraph 3 is replaced by the following:
"3. This Article is without prejudice to the right of the national resolution authorities, participating DGS and designated authorities to levy fees in accordance with national law, in respect of their administrative expenditures of the types referred to in paragraphs 1 and 2, including expenditures for cooperating with and assisting the Board.";
28. the following Article 60a is inserted:
"Article 60 - a Part III of the Budget
1. The revenues of Part III of the budget shall consist, in particular, of the following:(a)contributions paid by institutions affiliated to participating DGSs in accordance with Article 74c and Article 74d;
(b)loans received from deposit guarantee schemes in non-participating Member States in accordance with Article 74f;
(c)loans received from financial institutions or other third parties in accordance with Article 74g;
(d)returns on the investments of the amounts held in the DIF in accordance with Article 75;
(e)funding repaid by participating DGSs in accordance with Article 41o.
2. The expenditure of Part III of the budget shall consist of the following:
(a)funding provided to participating DGSs for the purposes of Article 41a, Article 41d or Article 41h;
(b)investments in accordance with Article 75;
(c)interest paid on loans received from other deposit guarantee financing arrangements in non-participating Member States in accordance with Article 74f;
(d)interest paid on loans received from financial institutions or other third parties in accordance with Article 74g.";
29. in Article 61(2), the words 'in its plenary session' are replaced by the words 'in its joint plenary session';
30. in Article 63(8), the words 'in its plenary session' are replaced by the words 'in its joint plenary session';
31. Article 65 is amended as follows:
(a)paragraph 1 is replaced by the following:
"1. Entities referred to in Article 2(1) and respectively point (b) of Article 2(2) shall contribute to Part I of the budget of the Board in accordance with this Regulation and the delegated acts on contributions adopted pursuant to paragraph 5 of this Article.";
(b)in paragraph 5, point (a) is replaced by the following:
"(a) determine the type of contributions, the matters for which contributions are due, taking into account the different tasks of the Board under this Regulation for the purposes of SRM and EDIS, the manner in which the amount of the contributions is calculated, and the way in which they are to be paid;";
32. in Title V of Part III, the heading of Chapter 2 is replaced by 'The Single Resolution Fund and the Deposit Insurance Fund';
33. in Chapter 2 of Title V of Part III, the heading of Section 1 is replaced by 'Constitution of the Single Resolution Fund';
34. in Chapter 2 of Title V of Part III, the following section is inserted:
"SECTION 1a
CONSTITUTION OF THE DEPOSIT INSURANCE FUND
Article 74 - a General Provisions
1. The DIF is hereby established. It shall be filled by contributions owed to the Board by credit institutions affiliated to participating DGSs. The contributions shall be calculated and invoiced, on behalf of the Board, by participating DGSs.2. The Board shall use the DIF only in order to provide the funding to, and cover the losses of, participating DGS in the different stages set out in Article 1(2) and in accordance with the objectives and the principles governing EDIS referred to in Article 6. Under no circumstances shall the Union budget or the national budgets be held liable for expenses or losses of the Fund.
3. The owner of the DIF shall be the Board. The Board's activities under this Regulation may under no circumstances engage the budgetary liability of the Member States.
Article 74 - b Target levels of the Deposit Insurance Fund
1. By the end of the reinsurance period the available financial means of the DIF shall reach an initial target level of 20% of four ninth of the sum of the minimum target levels that participating DGSs shall reach in accordance with the first subparagraph of Article 10(2) of Directive 2014/49/EU.2. By the end of the co-insurance period the available financial means of the DIF shall reach the sum of the minimum target levels that participating DGSs shall reach under the first subparagraph of Article 10(2) of Directive 2014/49/EU.
3. During the reinsurance and co-insurance periods contributions to the DIF calculated in accordance with Article 74c shall be spread out in time as evenly as possible until the respective target level is reached.
4. After the target level specified in paragraph 2 has been reached for the first time and where the available financial means have subsequently been reduced to less than two-thirds of the target level, the contributions calculated in accordance with Article 74c shall be set at a level allowing to reach the target level within six years.
5. The Commission shall be empowered to adopt delegated acts in accordance with Article 93 to specify the following:
(a)criteria for the spreading out in time of the contributions to the DIF calculated under paragraph 2;
(b)criteria for establishing the annual contributions provided for in paragraph 4.
Article 74 - c Ex-ante contributions
1. Each year during the reinsurance and co-insurance period, the Board shall, after consulting the ECB and the national competent authority and in close cooperation with the participating DGSs and designated authorities, determine for each participating DGS the total amount of ex-ante contributions that it may claim from the credit institutions affiliated to the respective participating DGS in order to reach the target levels provided for in Article 74b. The total amount of contributions shall not exceed the target levels provided for in Article 74b (1) and (2).2. During the reinsurance period each participating DGS shall calculate, on the basis of the total amount determined by the Board under paragraph 1, the contribution of each credit institution affiliated to it. It shall apply the risk-based method established by the delegated act according to the second subparagraph of paragraph 5.
After the reinsurance period, the Board itself shall calculate the contribution of each credit institution affiliated to a participating DGS. The Board shall apply the risk-based method established by the delegated act according to the third subparagraph of paragraph 5.
In all stages of EDIS the participating DGS shall invoice, on behalf of the Board, the contribution of each credit institution on an annual basis. Credit institutions shall pay the invoiced amount directly to the Board. The contributions shall become due on 31 May of each year.
3. The duly received contributions of each credit institution referred to in Article 2(2) shall not be reimbursed to those entities.
4. The contributions that credit institutions affiliated to a participating DGS pay into the DIF in accordance with this Article shall count towards the minimum target level that the participating DGS shall reach in accordance with the first subparagraph of Article 10(2) of Directive 2014/49/EU. If the participating DGS, by 3 July 2024 or any later date, has followed the funding path set out in Article 41j and credit institutions affiliated to it paid to the DIF all ex-ante contributions that, until 3 July 2024, had to be paid to the DIF, these contributions shall constitute the full contribution owed in order to reach the target level in accordance with the first subparagraph of Article 10(2) of Directive 2014/49/EU.
Member States may provide that a participating DGS may consider the contributions that credit institutions affiliated to it paid into the DIF when setting the level of their ex-ante contributions or may reimburse these credit institutions from its available financial means to the extent they exceed the amounts set out in Article 41j on the relevant date.
5. The Commission shall be empowered to adopt delegated acts in accordance with Article 93 in order to specify a risk-based method for the calculation of contributions in accordance with paragraph 2 of this Article.
It shall adopt one delegated act specifying the method for the calculation of contributions payable to participating DGSs and, for the reinsurance period only, to the DIF. In this delegated act the calculation shall be based on the amount of covered deposits and the degree of risk incurred by each credit institution relative to all other credit institutions affiliated to the same participating DGS.
It shall adopt a second delegated act specifying the method for the calculation of the contributions payable to the DIF as from the co-insurance period. In this second delegated act the calculation shall be based on the amount of covered deposits and the degree of risk incurred by each credit institution relative to all other credit institutions referred to in point (b) of Article 2(2).
Both delegated acts shall include a calculation formula, specific indicators, risk classes for members, thresholds for risk weights assigned to specific risk classes, and other necessary elements. The degree of risk shall be assessed on the basis of the following criteria:
(a)the level of loss absorbing capacity of the institution;
(b)the institution’s ability to meet its short- and long-term obligations;
(c)the stability and variety of the institutions sources of funding and its unencumbered highly liquid assets’;
(d)the quality of the institution’s assets;
(e)the institution’s business model and management;
(f)the degree to which the institution’s assets are encumbered.
Article 74 - d Extraordinary ex-post contributions
1. Where, after the reinsurance period, the available financial means are not sufficient to cover the losses, costs or other expenses incurred by the DIF following a payout event, extraordinary ex-post contributions from the credit institutions affiliated to participating DGSs shall be raised in order to cover the additional amounts. Notwithstanding paragraphs 2 and 3, the amount of ex-post contributions to be raised shall be equal to the shortfall of available financial means but shall not exceed the maximum share of total covered deposits of all credit institutions within the scope of EDIS laid down by delegated act of the Commission in accordance with paragraph 5.2. The Board shall itself calculate the contribution of each credit-institution affiliated to each participating DGS. It shall apply the risk-based method specified in the delegated act adopted by the Commission in accordance with the third subparagraph of Article 74c(5).
The third subparagraph of Article 74c(2) shall apply by analogy.
3. The Board shall, on its own initiative after consulting the relevant competent authority, or upon proposal by the relevant competent authority, defer, in whole or in part, in accordance with the delegated acts referred to in paragraph 4, an institution's payment of extraordinary ex-post contributions if it is necessary to protect its financial position. Such a deferral shall not be granted for a period of longer than six months but may be renewed on request of the institution. The contributions deferred pursuant to this paragraph shall be made later at a point in time when the payment no longer jeopardises the institution's financial position.
4. The Commission shall be empowered to adopt delegated acts in accordance with Article 93 to specify the annual limits referred to in paragraph 1 and the circumstances and conditions under which the payment of ex-post contributions by an entity referred to in point (b) of Article 2(2) may be partially or entirely deferred pursuant to paragraph 3 of this Article.
Article 74 - e Implementation of decisions under this Regulation
1. The participating DGS shall take the necessary action to implement decisions referred to in this Regulation.Subject to this Regulation, the participating DGS shall exercise its powers under national law transposing the Directive 2014/49/EU and in accordance with the conditions laid down in national law. The participating DGS shall fully inform the Board of the exercise of those powers.
2. Where a participating DGS has not applied or has not complied with a decision by the Board pursuant to this Regulation or has applied it in a way which poses a threat to the efficient implementation of EDIS and to the objectives of this Regulation, the Board may order the participating DGS to adopt any necessary action to comply with the decision in question.
3. Where a participating DGS addressed a decision to a credit institution affiliated to it, including the invoicing of contributions, and the credit institution has intentionally or negligently not complied with that decision, the Board shall take a decision imposing a fine on the credit institution in accordance with Article 38.
Article 74 - f Voluntary lending to and borrowing from non-participating DGS
1. The Board shall decide to make a request to borrow for the DIF from deposit guarantee schemes within non-participating Member States in the event that:(a)the amounts raised under Article 74c are not sufficient to cover the losses, costs or other expenses incurred by the use of the DIF in relation to resolution actions;
(b)the extraordinary ex-post contributions provided for in Article 74d are not immediately accessible;
(c)the alternative funding means provided for in Article 74g are not immediately accessible on reasonable terms.
2. Those deposit guarantee schemes shall decide on such a request in accordance with Article 12 of Directive 2014/49/EU.
3. The Board may decide to lend to other deposit guarantee schemes within non-participating Member States upon request. Article 12 of Directive 2014/49/EU shall apply by analogy with respect to the borrowing conditions.
Article 74 - g Alternative funding means
1. The Board may contract for the DIF borrowings or other forms of support from institutions, financial institutions or other third parties, which offer better financial terms, at the most appropriate time so as to optimise the cost of funding and preserve its reputation. The proceeds of such borrowings shall be used exclusively to meet payment obligations towards participating DGSs, in the event that the amounts raised in accordance with Articles 74c and 74d are not immediately accessible or do not cover the amounts claimed from the DIF in relation to payout events.2. The borrowing or other forms of support referred to in paragraph 1 shall be fully recouped in accordance with Articles 74c and 74d.
3. Any expenses incurred by the use of the borrowings specified in paragraph 1 shall be borne by Part III of the budget of the Board and not by the Union budget or the participating Member States.
4. The Board may decide to invest proceeds from borrowings in accordance with Article 75 in order to protect their real value.";
35. in Chapter 2 of Title V of Part III, the heading of Section 2 is replaced by 'Administration of the SRF and DIF'.
36. Article 75 is replaced by the following:
"Article 75
Investments
1. The Board shall administer the SRF and the DIF in accordance with this Regulation and delegated acts adopted under paragraph 4.
2. The amounts received from an institution under resolution or a bridge institution, the interests and other earnings on investments and any other earnings shall benefit only the SRF and the DIF.
3. The Board shall have a prudent and safe investment strategy that is provided for in the delegated acts adopted pursuant to paragraph 4 of this Article, and shall invest the amounts held in the SRF and the DIF in obligations of the Member States or intergovernmental organisations, or in highly liquid assets of high creditworthiness, taking into account the delegated act referred to in Article 460 of Regulation (EU) No 575/2013 as well as other relevant provisions of that Regulation. Investments shall be sufficiently sectorally, geographically and proportionally diversified. The return on those investments shall benefit the SRF and the DIF respectively.
4. The Commission shall be empowered to adopt delegated acts on the detailed rules for the administration of the SRF and the DIF and general principles and criteria for their investment strategy, in accordance with the procedure laid down in Article 93.";
37. the following Article 77a is inserted:
"Article 77a
Use of the DIF
1. During the reinsurance period the Board shall use the DIF to provide the funding in accordance with Article 41a(2) and cover a share of the excess loss in accordance with Article 41a(3).
2. During and after the co-insurance period the Board shall use the DIF to provide the funding in accordance with Article 41d(2) and Article 41h(2), respectively, and cover the loss in accordance with Article 41d(3) and 41h(3), respectively.
3. The use of the DIF with respect to a credit institution affiliated to a participating DGS shall be contingent upon compliance by this credit institution with the obligations incumbent on it as a member of the participating DGS set out in this Regulation and in Directive 2014/49/EU.";
38. in Title VI of Part III, in Article 81(4), Article 83(2) and (3), Article 87(4), Article 88(2) and (6), the words 'national resolution authority' are replaced by 'national resolution authority, participating DGS or designated authorities where relevant' and the words 'national resolution authorities' are replaced by 'national resolution authorities, participating DGS or designated authorities where relevant';
39. Article 93 is amended as follows:
(a)paragraph 2 is replaced by the following:
"2. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) shall be conferred for an indeterminate period of time from the relevant dates referred to in Article 99.";
(b)paragraph 4 is replaced by the following:
"4. The delegation of power referred to in Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.";
(c)paragraph 6 is replaced by the following:
"6. A delegated act adopted pursuant to Article 19(8), Article 65(5), Article 69(5), Article 71(3), Article 74b (5), Article 74c (5), Article 74d(4) and Article 75(4) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or the Council.";
40. in Article 99, the following paragraph 5a is inserted:
"5a.By way of derogation from paragraph 2, Article 1(2), Part IIa and Part III, Title V Chapter 2 Section 1a shall apply from [OP insert date of entry into force of this Regulation]";
41. throughout Regulation (EU) No 806/2014, the word 'the Fund' is replaced with 'the SRF'.
Article 2
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.This Regulation shall be binding in its entirety and directly applicable in all Member States.