Article 325
Allowances 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 subject to the permission of the competent authorities, which shall be granted if all of the following conditions are met:
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(a) |
there is a satisfactory allocation of own funds within the group; |
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(b) |
the regulatory, legal or contractual framework in which the institutions operate is such as to guarantee mutual financial support within the group. |
3. Where there are undertakings located in third countries all of the following conditions shall be met in addition to those in paragraph 2:
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(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; |
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(b) |
such undertakings comply, on an individual basis, with own funds requirements equivalent to those laid down in this Regulation; |
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(c) |
no regulations exist in the third countries in question which might significantly affect the transfer of funds within the group. |