Article 325b
Permission for consolidated requirements
1.
Subject to paragraph 2, and only for the purpose of calculating net positions and own funds requirements in accordance with this Title on a consolidated basis, institutions may use positions in one institution or undertaking to offset positions in another institution or undertaking.
2.
Institutions may apply paragraph 1 only with the permission of the competent authorities which shall be granted if all the following conditions are met:
(b)
the regulatory, legal or contractual framework in which the institutions operate guarantees mutual financial support within the group.
3.
Where there are undertakings located in third countries, all the following conditions shall be met in addition to those set out in paragraph 2:
(a)
such undertakings have been authorised in a third country and either satisfy the definition of a credit institution or are recognised third-country investment firms;
(b)
on an individual basis, such undertakings comply with own funds requirements equivalent to those laid down in this Regulation;
(c)
no regulations exist in the third countries in question which might significantly affect the transfer of funds within the group.
4.
Where a competent authority has not granted an institution the permission referred to in paragraph 2 for at least one institution or undertaking of the group, the following requirements shall apply for the calculation of the own funds requirements for market risk on a consolidated basis in accordance with this Title:
(a)
the institution shall calculate net positions and own funds requirements in accordance with this Title for all positions in institutions or undertakings of the group for which the institution has been granted the permission referred to in paragraph 2, using the treatment set out in paragraph 1;
(b)
the institution shall calculate net positions and own funds requirements in accordance with this Title individually for all positions in each institution or undertaking of the group for which the institution has not been granted the permission referred to in paragraph 2;
(c)
the institution shall calculate the total own funds requirements in accordance with this Title on a consolidated basis by adding the amounts calculated in points (a) and (b) of this paragraph.
For the purposes of the calculation referred to in the first subparagraph, points (a) and (b), institutions and undertakings referred to therein shall use the same reporting currency as the reporting currency used to calculate the own funds requirements for market risk in accordance with this Title on a consolidated basis for the group.