AI Summary of Article 325b Permission for consolidated requirements
This regulation allows institutions to offset positions within a group for calculating net positions and own funds requirements, contingent upon the approval of competent authorities. Such approval is granted only if the group demonstrates satisfactory allocation of own funds and a robust framework ensuring mutual financial support.
For institutions with third-country undertakings, additional conditions apply, including compliance with equivalent own funds requirements and the absence of restrictive third-country regulations. If permission is denied for any undertaking, institutions must calculate own funds requirements both collectively and individually, adhering to the specified regulatory framework.
Article 325b Permission for consolidated requirements
1. Subject to paragraph 2, and only for the purpose of calculating net positions and own funds requirements in accordance with this Title on a consolidated basis, institutions may use positions in one institution or undertaking to offset positions in another institution or undertaking.
2. Institutions may apply paragraph 1 only with the permission of the competent authorities which shall be granted if all the following conditions are met:
(a) there is a satisfactory allocation of own funds within the group;
(b) the regulatory, legal or contractual framework in which the institutions operate guarantees mutual financial support within the group.
3. Where there are undertakings located in third countries, all the following conditions shall be met in addition to those set out in paragraph 2:
(a) such undertakings have been authorised in a third country and either satisfy the definition of a credit institution or are recognised third-country investment firms;