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Article 494a - Grandfathering of issuances through special purpose entities

Article 494a

Grandfathering of issuances through special purpose entities

1.  

By way of derogation from Article 52, capital instruments not issued directly by an institution shall qualify as Additional Tier 1 instruments until 31 December 2021 only where all the following conditions are met:

(a) 

the conditions set out in Article 52(1), except for the condition requiring that the instruments are directly issued by the institution;

(b) 

the instruments are issued through an entity within the consolidation pursuant to Chapter 2 of Title II of Part One;

(c) 

the proceeds are immediately available to the institution without limitation and in a form that satisfies the conditions set out in this paragraph.

2.  

By way of derogation from Article 63, capital instruments not issued directly by an institution shall qualify as Tier 2 instruments until 31 December 2021 only where all the following conditions are met:

(a) 

the conditions set out in Article 63, except for the condition requiring that the instruments are directly issued by the institution;

(b) 

the instruments are issued through an entity within the consolidation pursuant to Chapter 2 of Title II of Part One;

(c) 

the proceeds are immediately available to the institution without limitation and in a form that satisfies the conditions set out in this paragraph.

In force

Version from: 08/07/2022

Amendment History