The European Central Bank (ECB) has published for consultation a draft guideline on the exercise of options and discretions available under EU law by Member State national competent authorities (NCAs) in relation to prudential requirements and less significant institutions.
The draft guideline relates to the following articles in the Capital Requirements Regulation (CRR):
- Article 89(3): risk weighting and prohibition of qualifying holdings outside the financial sector;
- Article 178(1)(b): default of an obligor;
- Article 282(6): hedging sets;
- Article 400(2): exemptions;
- Article 24(4) and (5) of Delegated Regulation 2015/61 supplementing the CRR: outflows from stable retail deposits;
- Article 471(1): exemption from deduction of equity holdings in insurance companies from common equity tier 1 items (CET 1); and
- Article 478(3)(a): applicable percentages for deduction from CET 1 items of significant investments in financial sector entities and deferred tax assets that rely on future profitability.
Once finalised NCAs will comply with the guidelines from 1 January 2018, except for the guideline that concerns Article 471(1) of the CRR, which shall be from 1 January 2019.
The consultation on the draft guideline closes on 5 January 2017.
View Q&A to the Public consultation on a draft guideline and a draft recommendation on the exercise of options and discretions available in Union law for less significant institutions, 3 November 2016
View Explanatory memorandum to the public consultation on a draft guideline and recommendation of the ECB on the exercise of options and discretions available in Union law for less significant institutions, 3 November 2016
View ECB guide on options and discretions available in the Union law, 3 November 2016