1.   EBA shall monitor the quality of own funds instruments issued by institutions across the Union and shall notify the Commission immediately where there is significant evidence of those instruments not meeting the criteria set out in Article 28 or, where applicable, Article 29.

Competent authorities shall, without delay, upon request by EBA, forward all information that EBA deems relevant concerning new capital instruments issued in order to enable EBA to monitor the quality of own funds instruments issued by institutions across the Union.

2.   A notification shall include the following:

(a)	a detailed explanation of the nature and extent of the shortfall identified;

(b)	technical advice on the action by the Commission that EBA considers to be necessary;

(c)	significant developments in the methodology of EBA for stress testing the solvency of institutions.

3.   EBA shall provide technical advice to the Commission on any significant changes it considers to be required to the definition of own funds as a result of any of the following:

(a)	relevant developments in market standards or practice;

(b)	changes in relevant legal or accounting standards;

(c)	significant developments in the methodology of EBA for stress testing the solvency of institutions.

4.   EBA shall provide technical advice to the Commission by 1 January 2014 on possible treatments of unrealised gains measured at fair value other than including them in Common Equity Tier 1 without adjustment. Such recommendations shall take into account relevant developments in international accounting standards and in international agreements on prudential standards for banks.