Recital (7)

Directive 2014/59/EU and Regulation (EU) No 575/2013 of the European Parliament and of the Council lay down powers to be exercised by resolution authorities, some of which are not included in Regulation (EU) No 806/2014. In the Single Resolution Mechanism (SRM), that can create uncertainty as to by whom and under what conditions those powers are to be exercised. It is therefore necessary to specify how national resolution authorities should exercise certain powers laid down only in Directive 2014/59/EU in relation to entities and groups that fall under the direct responsibility of the Board. The Board should therefore be able, where it deems it necessary, to instruct national resolution authorities to exercise those powers. In particular, the Board should be able to instruct national resolution authorities to require an entity to maintain detailed records of the financial contracts to which the entity is a party, to exercise the power to suspend some financial obligations pursuant to Article 33a of Directive 2014/59/EU, and to ensure the confidentiality of inside information pursuant to Article 84b of that Directive. However, given that the permissions for the reduction of eligible liabilities instruments granted on the basis of Regulation (EU) No 575/2013, which is also applicable to entities and to liabilities subject to the MREL, do not require the application of national legislation, the Board should be able to grant those permissions to entities directly, without having to instruct national resolution authorities to exercise that power.