Implementation Guidelines on large exposures exemptions for money transmission, correspondent banking, clearing and settlement and custody services

  • Press Release
  • 17 May 2013

The Committee of European Banking Supervisors (CEBS) today publishes its implementation guidelines on Article 106(2) (c) and (d) of Directive 2006/48/EC (Capital Requirements Directive) as amended by Directive 2009/111/EC.

As a consequence of the deletion of the general preferential treatment for inter-bank exposures in the large exposures rules, the Capital Requirements Directive (CRD) now provides exemptions from large exposures rules for specific short-term exposures arising from the provision of money transmission, correspondent banking, clearing and settlement and custody activities.

CEBS's guidelines are structured in two main parts, covering Article 106(2) (c) and (d) respectively. The guidelines provide further clarification of the criteria which must be met to qualify for these exemptions. The guidelines elaborate in particular on "types of services", the definition of client activity and "life-span" of exposures.

The guidelines are a response to Article 106(2) last subparagraph of the CRD that requires CEBS to elaborate guidelines for the convergence of supervisory practices in applying these exemptions. Thus, CEBS's guidance on the scope and eligibility conditions of the exemption provisions is called upon in order to safeguard a level playing field for institutions providing money transmission or financial instruments clearing, settlement and custody services.

In developing these guidelines, CEBS benefited from views gathered from market participants. Input was provided in the industry's responses to the public consultation (CP38) published in March 2010. In addition, industry experts have provided technical input in bilateral contacts. CEBS has considered the feedback received and has revised its initial proposals in order to address the main issues raised by market participants.

The guidelines have to be transposed into Member States' national law by 31 October 2010 and to be applied from 31 December 2010.

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