RegAlert2021-01-25
Added · Updated
Recommendation on restriction of distributions during the COVID-19 pandemic (ESRB/2020/7)
Relevant authorities are recommended to request financial institutions under their supervisory remit to refrain from making dividend distributions, buying back ordinary shares, or creating obligations to pay variable remuneration to material risk takers until 30 September 2021. These restrictions apply at the EU group level or individual level and aim to reduce the quantity or quality of own funds, unless institutions apply extreme caution and the reduction does not exceed a conservative threshold set by competent authorities. Competent authorities must calibrate this threshold to ensure overall distribution levels are significantly lower than pre-crisis years, while addressees are required to report on implementation by 15 October 2021.
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EUR-Lex - 02020Y0626(01)-20210125 - EN
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Source: European Systemic Risk Board — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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