AI Summary of Article 82 Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds
This guidance outlines the conditions under which minority interests and capital instruments of a subsidiary can qualify as Additional Tier 1 or Tier 2 capital. To be eligible, the subsidiary must fall within specified categories, including institutions and investment firms, and adhere to requisite national regulations.
Furthermore, the subsidiary must be fully integrated within the consolidation's scope and the relevant capital items must be owned by external parties, not included in the consolidation. Compliance with these parameters ensures alignment with regulatory standards and promotes robust capital management.
Article 82 Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds
Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds shall comprise the minority interest, Additional Tier 1 or Tier 2 instruments, as applicable, plus the related share premium accounts, of a subsidiary where the following conditions are met:
(a) the subsidiary is one of the following:
(i) an institution;
(ii) an undertaking that is subject by virtue of applicable national law to the requirements of this Regulation and of Directive 2013/36/EU;
(iii) an intermediate financial holding company or intermediate mixed financial holding company that is subject to the requirements of this Regulation on a sub-consolidated basis, or an intermediate investment holding company that is subject to the requirements of Regulation (EU) 2019/2033 on a consolidated basis;
(iv) an investment firm;