Regulatory Alerts2020-05-27
Added · Updated
Recommendation on restriction of distributions during the COVID-19 pandemic
Relevant authorities are recommended to request financial institutions, including banks, insurers, reinsurers, investment firms, and central counterparties, to refrain from making dividend distributions, buying back ordinary shares, or creating obligations to pay variable remuneration to material risk takers until 1 January 2021. These restrictions apply where such actions reduce the quantity or quality of own funds at the EU group, sub-consolidated, or individual level. Authorities may exempt institutions if legally obliged to undertake these actions and must communicate their implementation measures to the European Systemic Risk Board by 31 July 2020.
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