# Commission Delegated Regulation (EU) 2016/1075 of 23 March 2016 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of recovery plans, resolution plans and group resolution plans, the minimum criteria that the competent authority is to assess as regards recovery plans and group recovery plans, the conditions for group financial support, the requirements for independent valuers, the contractual recognition of write-down and conversion powers, the procedures and contents of notification requirements and of notice of suspension and the operational functioning of the resolution colleges (Text with EEA relevance), Article 28: Assessment of feasibility: financial resources

Extent: E+W+S+N.I.

Resolution authorities shall consider at least the following issues in assessing whether there are potential impediments to resolution related to financial resources:
(1) matters addressed in points 13, 14, 15 and 17 of Section C of the Annex to Directive 2014/59/EU;
(2) the need to identify and quantify the amount of any liabilities which are likely under the preferred resolution strategy not to contributing to loss absorption or recapitalisation, considering at a minimum the following factors:
(i) maturity;
(ii) subordination ranking;
(iii) the types of holders of the instrument, or the instrument's transferability;
(iv) legal impediments to loss absorbency such as lack of recognition of resolution tools under foreign law or existence of set-off rights;
(v) other factors creating risk that the liabilities would be exempted from absorbing losses in resolution;
(vi) the amount and issuing legal entities of qualifying eligible liabilities or other liabilities which would absorb losses;
(3) the size of funding needs in the run-up to and during resolution, the availability of sources of funding, and impediments to the transfer of funds as required within the institution or group;
(4) whether appropriate arrangements are specified for losses to be transferred to legal entities to which resolution tools would be applied from other group companies, including where relevant an assessment of the amount and loss-absorbency of intragroup funding.

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Source: https://www.legislation.gov.uk/eur/2016/1075/article/28 (the official version)
Page: https://openlegislation.uk/eu-regulation-2016-1075/article-28
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.