2013_13 Grandfathering of own funds instruments

Question ID:: 2013_13
Legal Act:: Regulation (EU) No 575/2013 (CRR)
Topic:: Own funds
Article:: 484
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:: Not applicable
Article/Paragraph:: N/A
Disclose name of institution / entity:: No
Type of submitter:: Competent authority
Subject Matter:: Grandfathering of own funds instruments
Question:: Will old style Tier 2 issuances without a reference to the proposals for a Directive Establishing a Framework for the Recovery and Resolution of Credit Institutions and Investment Firms / Point of Non-viability (PON) fully qualify upon entry into force of Regulation (EU) No 575/2013?
Background on the question:: Not given
Date of submission:: 03/07/2013
Final Answer:: In the absence of a PON eligibility criterion in Regulation (EU) No 575/2013, the reference to PON, or absence thereof, will not be conditioning the eligibility of instruments. Capital instruments will be fully eligible provided that they meet all eligibility criteria applicable to the category of instruments they belong to.
Status:: Archive
Answer prepared by:: Answer prepared by the EBA.
Note to Q&A:: Update 26.03.2021: This Q&A has been archived in light of the change(s) introduced to Regulation (EU) No 575/2013 (CRR).