RBS 2015 Annual Report Download - page 53

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Prospective implementation of UK resolution
Losses will arise first at ‘OpCo’ level and
only apply at ‘HoldCo’ to the extent of any
write-down of its intercompany assets
‘No creditor worse off’ principle enshrined
in the UK resolution regime
If required for LAC purposes, Senior is
expected to be downstreamed in a form
subordinated to OpCo senior, thus
complying with any TLAC / MREL
requirement
Future LAC downstreaming not planned to
commence prior to completion of legal
entity realignment for Ring Fencing
Senior
Subordinated Debt
Additional Tier 1
Equity
Holding Company
Losses limited to
write down of
intercompany
assets
Intercompany
downstream
Inter-company LAC
Subordinated Debt
Additional Tier 1
Equity
Losses arise at
OpCo
Operating Companies
Excluded Liabilities
Senior
Illustrative anticipated UK creditor hierarchy
Based on RBS interpretation of the creditor hierarchy in a resolution scenario
(1) The write-down of the intercompany assets will be determined by the relevant authority following valuations conducted per BRRD Article 36.
44
(1)