AI Summary of Article 428ae 55 % required stable funding factor
The specified shares or units in Collective Investment Undertakings (CIUs) that meet the criteria for a 55% haircut in the liquidity coverage ratio calculation are mandated to adhere to a 55% required stable funding factor. This requirement applies irrespective of their compliance with operational parameters or the stipulated criteria regarding the liquidity buffer composition under the pertinent delegated act.
This regulatory stance underscores the emphasis on maintaining robust liquidity frameworks and ensuring that all qualifying instruments are sufficiently capitalised to withstand potential market fluctuations. Legal and compliance professionals must carefully assess the implications of these stipulations on their liquidity management strategies.
Article 428ae 55 % required stable funding factor
Unencumbered shares or units in CIUs that are eligible for a 55 % haircut for the calculation of the liquidity coverage ratio in accordance with the delegated act referred to in Article 460(1) shall be subject to a 55 % required stable funding factor, regardless of whether they comply with the operational requirements and with the requirements on the composition of the liquidity buffer as set out in that delegated act.