The Spanish Law 11/2015 of 18 June on the recovery and resolution of credit institutions and investment companies entered into force on 19 June 2015, transposing Directive 2014/59/EU of the European Parliament and of the Council of 15 May that established a framework for the recovery and resolution of credit institutions and investment firms.

What is it?

The aim of resolution is to ensure that a credit institution or investment firm that is deemed to be failing or likely to fail, continues providing critical functions through the use of resolution tools, in order to safeguard financial stability, public interest and minimal costs to taxpayers as an alternative to winding up under normal insolvency procedures.

Spain has chosen an institutional set-up that grants the CNMV powers of preventive resolution of investment firms and the FROB powers of enforceable resolution.

The CNMV, as preventive resolution authority for investment firms, after consulting the supervisor authority and the FROB, shall draw up a resolution plan for each investment firm. The purpose of a resolution plan is to identify the best resolution strategy. The plan includes a resolvability assessment carried out by the CNMV for measuring the credibility and feasibility to either liquidate the investment firm under normal insolvency proceeding or to resolve it by applying resolution tools.


Guidelines, recommendations, questions and answers