Early intervention measures and preparation for resolution

The conditions for applying early intervention measures, including the removal of management and appointment of temporary managers, are amended to remove ambiguity and provide competent authorities with the necessary legal certainty. Articles 27(1), 28 and 29(1) are amended to provide that early intervention measures may be used when the conditions for supervisory measures under CRD or Directive (EU) 2019/2034 [Directive of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU (OJ L 314, 5.12.2019, p. 64).] (Investment Firms Directive or IFD) have been met, but those measures have not been taken by the institution or are deemed insufficient to address the identified issues. The existing triggers not covered by CRD or IFD are preserved. At the same time, the internal sequencing between early intervention measures, removal of managers and appointment of temporary managers is removed - under the proposal, they are all subject to the same triggers, but competent authorities are required to follow the proportionality principle when choosing the most appropriate measure for each circumstance. The EBA mandate for guidelines promoting the consistent application of the triggers is maintained.