AI Summary of Article 45a Temporary restrictions in the case of a significant non-default event
Where a significant non‑default event (point (9), Article 2, Regulation (EU) 2021/23) occurs, the competent authority may require a CCP to refrain, for a period specified by the competent authority not exceeding five years, from: making dividend distributions or giving irrevocable commitments to make such distributions except for dividend rights expressly referred to in Regulation (EU) 2021/23 as a form of compensation; buying back ordinary shares; and creating an obligation to pay variable remuneration as defined by the CCP’s remuneration policy pursuant to Article 26(5), discretionary pension benefits or severance packages to senior management (point 29, Article 2). The competent authority shall not restrict the CCP from undertaking those actions if the CCP is legally obliged to do so and that obligation predates the events.
The competent authority may waive the restrictions where it deems that waiving them would not reduce the quantity or availability of the CCP’s own resources, in particular those available for use as a recovery measure. ESMA shall, by 12 February 2022, draft guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010 further specifying the circumstances in which the competent authority may require the CCP to refrain from the actions referred to in paragraph 1 of this Article.
Article 45a Temporary restrictions in the case of a significant non-default event
1. In the case of a significant non-default event as defined in point (9) of Article 2 of Regulation (EU) 2021/23, the competent authority may require the CCP to refrain from any of the following actions for a period specified by the competent authority, that cannot exceed five years:
(a) making a dividend distribution or give an irrevocable commitment to make a dividend distribution, except for rights to dividends specifically referred to in Regulation (EU) 2021/23 as a form of compensation;
(b) buy-back of ordinary shares;
(c) creating an obligation to pay variable remuneration as defined by the CCP’s remuneration policy pursuant to Article 26(5) of this Regulation, discretionary pension benefits or severance packages to senior management as defined in point 29 of Article 2 of this Regulation.
The competent authority shall not restrict the CCP from undertaking any of the actions referred to in the first subparagraph, if the CCP is legally obliged to undertake that action and the obligation predates the events pursuant to the first subparagraph.