AI Summary of 845C. Treatment of Additional Tier 1 instruments.
This section defines the parameters surrounding Additional Tier 1 instruments, which qualify under the Capital Requirements Regulation (EU) No 575/2013. Such instruments can either be directly issued by qualifying institutions or meet equivalent conditions if not issued by these entities. The text outlines a series of amendments to the Regulation that have evolved over the years, responding to changing market dynamics and regulatory needs.
Furthermore, for the purposes of tax legislation, Additional Tier 1 instruments are classified as debt instruments. Their associated coupons are considered interest payments, and are not treated as distributions or charges on income. Notably, provisions are included to prevent misuse for tax avoidance.
845C. Treatment of Additional Tier 1 instruments.
(1) In this section -
"Additional Tier 1 instrument" means an instrument -
(a) which qualifies, or has qualified, as an Additional Tier 1 instrument under Article 52 of the Capital Requirements Regulation, or
(b) which is an instrument that has not been issued by an institution within the meaning of Article 4 of the Capital Requirements Regulation but which satisfies conditions that, with any necessary modification of them by virtue of the fact that the instrument has not been issued by a foregoing institution, are equivalent to the conditions specified in Article 52 of the Capital Requirements Regulation;
"Capital Requirements Regulation" means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 [OJ No. L. 176, 27.6. 2013, p. 1.] on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, as amended by -
(a) Commission Delegated Regulation (EU) 2015/62 of 10 October 2014 [OJ No. L. 11, 17.1.2015, p. 37.] amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the leverage ratio,