# Commission Delegated Regulation (EU) 2016/860 of 4 February 2016 specifying further the circumstances where exclusion from the application of write-down or conversion powers is necessary under Article 44(3) of Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms, Article 5: Exclusion on grounds of impossibility to bail-in under section 48B(12)(a) of the Banking Act 2009

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

1. The resolution authority may only exclude a liability or class of liabilities from the exercise of the bail-in tool where the obstacles invoked for such exercise do not allow for it to take place within a reasonable time, despite every best effort of the resolution authority.
2. With regard to paragraph 1, the resolution authority shall, in particular, satisfy the following requirements before making a determination as to the exclusion referred to therein:
(a) the obligation of the resolution authority, to provide in the resolution plan, a description of the processes for ensuring availability within an appropriate time frame of the information required for the purposes of valuation pursuant to section 6E of the Act;
(b) the obligation of the resolution authority to address any impediments to resolvability of the institution including the circumstances resulting in a potential exclusion which could be foreseen in the resolution planning process when those potential exclusions amount to impediments to resolvability.

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Source: https://www.legislation.gov.uk/eur/2016/860/article/5 (the official version)
Page: https://openlegislation.uk/eu-regulation-2016-860/article-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.