CEBS draft implementation guidelines on instruments referred to in Article 57(a) of the CRD(CP33)

Start Date: 17/12/2009 | Deadline: 31/03/2009

The Committee of European Banking Supervisors (CEBS) today publishes its consultation paper (CP33) on its implementation guidelines on capital instruments. The consultation is open to all interested parties, including supervised institutions and other market participants.

The revised Capital Requirements Directive (CRD) introduces explicit rules for the treatment of instruments eligible as capital and, in particular, requirements for their inclusion in institutions' original own funds without limits. 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 is a response 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 point (a) of Article 57.

On the basis of these provisions, a set of 10 criteria has been developed for the assessment of capital instruments that may be included in original own funds without limits. These criteria form the basis of CEBS's guidelines.

On the basis of Recital 4 of the revised CRD, CEBS has taken into account the specificities of non-joint-stock companies such as cooperatives and mutuals when elaborating these criteria.

Due to possible evolutions in the global regulatory framework with regard to the definition of capital instruments, CEBS is prepared to take into account these evolutions in its final guidelines on Article 57(a) as far as necessary.

Accordingly, CEBS has submitted its initial views for a public consultation, starting today and which will run until 31 March 2010. 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 23 February 2010 at CEBS's premises in London, to allow all interested parties, including supervised institutions and other market participants, to put forward their views on the consultation paper. More details regarding this hearing will be provided in due course.