AI Summary of Article 479 Recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests
This regulation establishes a transitional framework for recognising certain items as consolidated Common Equity Tier 1 capital during the period from 1 January 2014 to 31 December 2017. It specifies conditions under which items, typically qualifying as consolidated reserves per national laws, may be excluded from Common Equity Tier 1 capital.
Authorities are tasked with determining applicable percentages for eligible items, which will progressively decrease from 80% in 2014 to 20% in 2017. This approach seeks to harmonise capital adequacy while considering individual circumstances of subsidiaries and compliance with existing regulatory frameworks.
Article 479 Recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests
1. By way of derogation from Title II of Part Two, during the period from 1 January 2014 to 31 December 2017, recognition in consolidated own funds of the items that would qualify as consolidated reserves in accordance with national transposition measures for Article 65 of Directive 2006/48/EC that do not qualify as consolidated Common Equity Tier 1 capital for any of the following reasons shall be determined by the competent authorities in accordance with paragraphs 2 and 3 of this Article:
(a) the instrument does not qualify as a Common Equity Tier 1 instrument, and the related retained earnings and share premium accounts consequently do not qualify as consolidated Common Equity Tier 1 items;
(b) the items do not qualify as a result of Article 81(2);
(c) the items do not qualify because the subsidiary is not an institution or an entity that is subject by virtue of applicable national law to the requirements of this Regulation and Directive 2013/36/EU;
(d) the items do not qualify because the subsidiary is not included fully in the consolidation pursuant to Chapter 2 of Title II of Part One.