X1PART THREECAPITAL REQUIREMENTS

Annotations:
Editorial Information

TITLE IVOWN FUNDS REQUIREMENTS FOR MARKET RISK

CHAPTER 1General provisions

Article 325Allowances 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:

a

there is a satisfactory allocation of own funds within the group;

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:

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

such undertakings comply, on an individual basis, 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.