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Commission Delegated Regulation (EU) No 241/2014Show full title

Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (Text with EEA relevance)

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Commission Delegated Regulation (EU) No 241/2014 is up to date with all changes known to be in force on or before 09 June 2024. There are changes that may be brought into force at a future date. Help about Changes to Legislation

EUR 2014 No. 241 may be subject to amendment by EU Exit Instruments made by both the Prudential Regulation Authority and the Financial Conduct Authority under powers set out in The Financial Regulators' Powers (Technical Standards etc.) (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1115), regs. 2, 3, Sch. Pt. 4. These amendments are not currently available on legislation.gov.uk. Details of relevant amending instruments can be found on their website/s.

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  1. Introductory Text

  2. CHAPTER I GENERAL

    1. Article 1.Subject matter

  3. CHAPTER II ELEMENTS OF OWN FUNDS

    1. SECTION 1 Common Equity Tier 1 capital and instruments

      1. Subsection 1 Foreseeable dividends and charges

        1. Article 2.Meaning of ‘foreseeable’ in foreseeable dividend for the purposes of Article 26(2)(b) of Regulation (EU) No 575/2013

        2. Article 3.Meaning of ‘foreseeable’ in foreseeable charge for the purposes of Article 26(2)(b) of Regulation (EU) No 575/2013

      2. Subsection 2 Cooperative societies, savings institutions, mutuals and similar institutions

        1. Article 4.Type of undertaking recognised under applicable national law as a cooperative society for the purposes of Article 27(1)(a)(ii) of Regulation (EU) No 575/2013

        2. Article 5.Type of undertaking recognised under applicable national law as a savings institution for the purposes of Article 27(1)(a)(iii) of Regulation (EU) No 575/2013

        3. Article 6.Type of undertaking recognised under applicable national law as a mutual for the purposes of Article 27(1)(a)(i) of Regulation (EU) No 575/2013

        4. Article 7.Type of undertaking recognised under applicable national law as a similar institution for the purposes of Article 27(1)(a)(iv) of Regulation (EU) No 575/2013

        5. Article 7a. Multiple distributions constituting a disproportionate drag on own funds

        6. Article 7b. Preferential distributions regarding preferential rights to payments of distributions

        7. Article 7c. Calculation of the payout ratio for the purposes of point (b) of Article 7b(8)

        8. Article 7d. Preferential distributions regarding the order of distribution payments

      3. Subsection 3 Indirect funding

        1. Article 8.Indirect funding of capital instruments for the purposes of Article 28(1)(b,) Article 52(1)(c) and Article 63(c) of Regulation (EU) No 575/2013

        2. Article 9.Applicable forms and nature of indirect funding of capital instruments for the purposes of Article 28(1)(b) and 52(1)(c) and 63(c) of Regulation (EU) No 575/2013

      4. Subsection 4 Limitations on redemption of capital instruments

        1. Article 10.Limitations on redemption of capital instruments issued by mutuals, savings institutions, cooperative societies and similar institutions for the purposes of Article 29(2)(b) of Regulation (EU) No 575/2013 and Article 78(3) of Regulation (EU) No 575/2013

        2. Article 11.Limitations on redemption of capital instruments issued by mutuals, savings institutions, cooperative societies and similar institutions for the purposes of Article 29(2)(b) of Regulation (EU) No 575/2013 and Article 78(3) of Regulation (EU) No 575/2013

    2. SECTION 2 Prudential Filters

      1. Article 12.The concept of gain on sale for the purposes of Article 32(1)(a) of Regulation (EU) No 575/2013

    3. SECTION 3 Deductions from Common Equity Tier 1 items

      1. Article 13.Deduction of losses for the current financial year for the purposes of Article 36(1)(a) of Regulation (EU) No 575/2013

      2. Article 13a.Deduction of software assets that are classified as intangible assets for accounting purposes for the purposes of Article 36(1), point (b), of Regulation (EU) No 575/2013

      3. Article 14.Deductions of deferred tax assets that rely on future profitability for the purposes of Article 36(1)(c) of Regulation (EU) No 575/2013

      4. Article 15.Deduction of defined benefit pension fund assets for the purposes of Article 36(1)(e) of Regulation (EU) No 575/2013 and Article 41(1)(b) of Regulation (EU) No 575/2013

      5. Article 15a.Indirect holdings for the purposes of Article 36(1)(f),(h) and (i) of Regulation (EU) No 575/2013

      6. Article 15b.Synthetic holdings for the purposes of Article 36(1)(f),(h) and (i) of Regulation (EU) No 575/2013

      7. Article 15c.Calculation of indirect holdings for the purposes of points (f),(h) and (i) of Article 36(1) of Regulation (EU) No 575/2013

      8. Article 15d.Default approach for the calculation of indirect holdings for the purposes of points (f),(h) and (i) of Article 36(1) of Regulation (EU) No 575/2013

      9. Article 15e.Structure-based approach for the calculation of indirect holdings for the purposes of points (f), (h) and (i) of Article 36(1) of Regulation (EU) No 575/2013

      10. Article 15f.Calculation of synthetic holdings for the purposes of points (f),(h) and (i) of Article 36(1) of Regulation (EU) No 575/2013

      11. Article 15g.Calculation of significant investments for the purposes of Article 36(1)(i) of Regulation (EU) No 575/2013

      12. Article 15h.Holdings of Additional Tier 1 and Tier 2

      13. Article 15i.Order and maximum amount of deductions of indirect holdings of own funds instruments of financial sector entities

      14. Article 15j.Goodwill

      15. Article 16.Deductions of foreseeable tax charges for the purposes of Article 36(1)(l) and Article 56(f) of Regulation (EU) No 575/2013

    4. SECTION 4 Other deductions for Common Equity Tier 1, additional Tier 1 and Tier 2 items

      1. Article 17.Other deductions for capital instruments of financial institutions for the purposes of Article 36(3) of Regulation (EU) No 575/2013

      2. Article 18.Capital instruments of third country insurance and reinsurance undertakings for the purposes of Article 36(3) of Regulation (EU) No 575/2013

      3. Article 19.Capital instruments of undertakings excluded from the scope of Directive 2009/138/EC for the purposes of Article 36(3) of Regulation (EU) No 575/2013

  4. CHAPTER III ADDITIONAL TIER 1 CAPITAL

    1. SECTION 1 Form and nature of incentives to redeem

      1. Article 20.Form and nature of incentives to redeem for the purposes of Article 52(1)(g) and 63(h)of Regulation (EU) No 575/2013

    2. SECTION 2 Conversion or write-down of the principal amount

      1. Article 21.Nature of the write-up of the principal amount following a write-down for the purposes of Article 52(1)(n) and Article 52(2)(c)(ii) of Regulation (EU) No 575/2013

      2. Article 22.Procedures and timing for determining that a trigger event has occurred for the purposes of Article 52(1)(n) of Regulation (EU) No 575/2013

    3. SECTION 3 Features of instruments that could hinder recapitalisation

      1. Article 23.Features of instruments that could hinder recapitalisation for the purposes of Article 52(1)(o) of Regulation (EU) No 575/2013

    4. SECTION 4 Use of special purposes entities for indirect issuance of own funds instruments

      1. Article 24.Use of special purposes entities for indirect issuance of own funds instruments for the purposes of Article 52(1)(p) and Article 63(n) of Regulation (EU) No 575/2013

      2. Article 24a. Distribution on own funds instruments — broad market indices

  5. CHAPTER IV GENERAL REQUIREMENTS

    1. SECTION 1 Indirect holdings arising from index holdings

      1. Article 25.Extent of conservatism required in estimates for calculating exposures used as an alternative to the underlying exposures for the purposes of Article 76(2) of Regulation (EU) No 575/2013

      2. Article 26.Meaning of operationally burdensome in Article 76(3) of Regulation (EU) No 575/2013

    2. SECTION 2 Supervisory permission for reducing own funds

      1. Article 27.Meaning of sustainable for the income capacity of the institution for the purposes of Article 78(1)(a) of Regulation (EU) No 575/2013

      2. Article 28.Process and data requirements for an application by an institution to carry out redemptions, reductions and repurchases — for the purposes of Article 77 of Regulation (EU) No 575/2013

      3. Article 29.Submission of application by the institution to carry out redemptions, reductions and repurchases for the purposes of Article 77 and Article 78 of Regulation (EU) No 575/2013 and appropriate bases of limitation of redemption for the purposes of paragraph 3 of Article 78 of Regulation (EU) No 575/2013

      4. Article 30.Content of the application to be submitted by the institution for the purposes of Article 77 of Regulation (EU) No 575/2013

      5. Article 31.Timing of the application to be submitted by the institution and processing of the application by the competent authority for the purposes of Article 77 of Regulation (EU) No 575/2013

      6. Article 32.Applications for redemptions, reductions and repurchases by mutuals, cooperative societies, savings institutions or similar institutions for the purposes of Article 77 of Regulation (EU) No 575/2013

    3. SECTION 3 Temporary waiver from deduction from own funds

      1. Article 33.Temporary waiver from deduction from own funds for the purposes of Article 79(1) of Regulation (EU) No 575/2013

  6. CHAPTER V MINORITY INTEREST AND ADDITIONAL TIER 1 AND TIER 2 INSTRUMENTS ISSUED BY SUBSIDIARIES

    1. Article 34.The type of assets that can relate to the operation of special purpose entities and meaning of minimal and insignificant regarding qualifying Additional Tier 1 and Tier 2 capital issued by special purpose entities for the purposes of Article 83(1) of Regulation (EU) No 575/2013

    2. Article 34a. Minority interests included in consolidated Common Equity Tier 1 capital

  7. CHAPTER Va OWN FUNDS BASED ON FIXED OVERHEADS

    1. Article 34b. Calculation of the eligible capital of at least one quarter of the fixed overheads of the preceding year for the purposes of Article 97(1) of Regulation (EU) No 575/2013

    2. Article 34c. Conditions for the adjustment by the competent authority of the requirement to hold eligible capital of at least one quarter of the fixed overheads of the previous year according to Article 97(2) of Regulation (EU) No 575/2013

    3. Article 34d. Calculation of projected fixed overheads in the case of a firm that has not completed business for one year according to Article 97(3) of Regulation (EU) No 575/2013

  8. CHAPTER VI SPECIFICATION OF THE TRANSITIONAL PROVISIONS OF REGULATION (EU) No 575/2013 IN RELATION TO OWN FUNDS

    1. Article 35.Additional filters and deductions for the purposes of Article 481(1) of Regulation (EU) No 575/2013

    2. Article 36.Items excluded from grandfathering of capital instruments not consituting state aid in Common Equity Tier 1 or Additional Tier 1 items in other elements of own funds for the purposes of Article 487(1) and (2) of Regulation (EU) No 575/2013

    3. Article 37.This Regulation shall enter into force on the twentieth day...

  9. Signature

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