Question ID: 3159
Regulation Reference: (EU) 2016/2341 - IORP II Directive
Topic: Reporting by IORPs
Template: PF.06.02, PFE.06.02
Status: Final
Date of submission: 26 Sep 2024
Question
Concerning taxonomy 2.9.0, new field in List of assets (PF.06.02/ PFE.06.02), C0241 Bail-in rules: Should the code BAIL_IN_BOND_DESIGNATION from Bloomberg be used for this reporting (for bonds), or should the information be retrieved from elsewhere? How can we find out which shares are subject to bail-in rules, is it all shares issued by banks?
Background of the question
Making sure we understand what we are expected to report in new fields for taxonomy 2.9.0.
EIOPA answer
Bail-in eligibility of bonds and shares can often be determined by reviewing bond prospectuses or issuer financial reports. Prospectuses typically specify whether a bond is unsecured and eligible for bail-in during resolution events. Issuer financial reports and public regulatory filings also frequently disclose bail-in eligibility, particularly for bank-issued securities.
For shares, common shares of banks are generally loss-absorbing in resolution and subject to bail-in. Preferred shares and hybrid instruments, such as Additional Tier 1 or Tier 2 capital, may also be bail-in eligible, depending on their specific terms.
Bloomberg provides fields like BAIL_IN_BOND_DESIGNATION, EQY_TYP, TIER_TYP, and CORP_TYP that can help identify bail-in eligibility where applicable. However, entities should ensure they can independently assess bail-in potential rather than relying solely on tools like Bloomberg or other third-party resources.