CEBS publishes for consultation its implementation guidelines on hybrid capital instruments(CP27)

Start Date: 22/06/2009 | Deadline: 23/09/2009

The Committee of European Banking Supervisors (CEBS) today publishes its consultation paper (CP 27) on its implementation guidelines on hybrid capital instruments. The consultation is open to all interested parties, including supervised institutions and other market participants.

Following CEBS's proposal for a common EU definition of Tier I hybrids, published in April 2008, explicit rules for the treatment of hybrid capital instruments are now included in the amended Capital Requirements Directive (CRD). The amendments will need to be transposed into Member States' national law by 31 October 2010 and will then be applied from 31 December 2010.

This consultation paper responds to Article 63a (6) of the revised CRD that requires CEBS to "elaborate guidelines for the convergence of supervisory practices with regard to the instruments referred to in Article 63a (1) and in Article 57(a) and monitor their application". In addition, the draft guidelines aim to complement the new CRD provisions, in particular Articles 63a and 66 (1a) where additional guidance appears necessary or appropriate. Thus, the draft guidelines presented in this consultation paper cover the topics of permanence, flexibility of payments, loss absorbency, limits and hybrid instruments issued through an SPV.

CEBS submits its initial views for a public consultation which starts today and runs until 23 September 2009. Comments received will be published on CEBS's website unless respondents request otherwise. Please send your comments to the following email address:

A public hearing will be held on 8 September 2009 at CEBS's premises in London, from 9.30 to 13.00 to allow interested parties to share their views with CEBS.

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