Article 24 Use of Special Purpose Entities for Indirect Issuance of Own Funds Instruments for the Purposes of Article 52(1)(p) and Article 63(n) of the CRR
1.
Where the institution or an entity within the consolidation pursuant to Chapter 2 of Title II of Part One of the CRR issues a capital instrument that is subscribed by a special purpose entity, this capital instrument shall not, at the level of the institution or of the above-mentioned entity, receive recognition as capital of a higher quality than the lowest quality of the capital issued to the special purpose entity and the capital issued to third parties by the special purpose entity. That requirement shall apply at the consolidated, sub-consolidated and individual levels of application of prudential requirements.
- 01/01/2023
2.
The rights of the holders of the instruments issued by a special purpose entity shall be no more favourable than if the instrument was issued directly by the institution or an entity within the consolidation pursuant to Chapter 2 of Title II of Part One of the CRR.
[Note: This rule corresponds to Article 24 of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]
- 01/01/2023