AI Summary of Article 493 Transitional provisions for large exposures
The provisions regarding large exposures in Articles 387 to 403 exempt certain investment firms whose primary business involves specific investment services linked to financial instruments defined under Directive 2014/65/EU. This exemption is effective until 31 December 2020 or until any amendments, whichever is sooner.
Additionally, transitional arrangements allow Member States to exempt specific exposures from Article 395(1) until 31 December 2028. These exemptions cover exposures to central governments, local authorities, and other public sector entities, provided they meet stipulated criteria. Such arrangements enable institutions to incur exposures up to certain limits against their Tier 1 capital.
Article 493 Transitional provisions for large exposures
1. The provisions on large exposures as laid down in Articles 387 to 403 of this Regulation shall not apply to investment firms the main business of which consists exclusively of the provision of investment services or activities in relation to the financial instruments set out in points (5), (6), (7), (9), (10) and (11) of Section C of Annex I to Directive 2014/65/EU and to which Directive 2004/39/EC of the European Parliament and of the Council [Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1).] did not apply on 31 December 2006. This exemption is available until 31 December 2020 or the date of entry into force of any amendments pursuant to paragraph 2 of this Article, whichever is the earlier.
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3. By way of derogation from Article 400(2) and (3), Member States may, for a transitional period until the entry into force of any legal act following the review in accordance with Article 507, but not after 31 December 2028, fully or partially exempt the following exposures from the application of Article 395(1):