Clifford Chance

Article 55 of the BRRD: contractual recognition of bail-in – what you need to do

25 September 2015

Article 55 of the BRRD requires EU firms and other in-scope entities to include a contractual recognition of bail-in clause in a very wide range of non-EU law governed contracts. EU Member States are required to implement Article 55 into national law by 1 January 2016 and some states have already done so. With the deadline approaching, this briefing looks at the scope of Article 55 and sets out some practical steps to assist you with preparing for compliance.

The EU Bank Recovery and Resolution Directive (2014/59/EU) (the "BRRD") is part of a series of EU banking reforms made in response to the financial crisis and establishes a framework for the resolution of failing financial institutions. It gives regulators a range of tools to do this, including bail-in powers to write-down and/or convert into equity certain liabilities of a failing institution.

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