ITS instructions for Annex I, C04.00, r650, c010 refer to article 46.4 that only deals with non significant investments in financial sector entities. Heading of reporting line seem to indicate that all the holdings (be significant or not) in financial sector entities should be reported there if not deducted from own funds. Can you clarify?
Unclarity in guidelines
Total risk-weighted exposure amounts of holdings not deducted from the corresponding capital category should be reported in rows 650, 660 and 670 of C 04.00. Accordingly, row 650 should include risk-weighted exposure amounts of significant and non-significant holdings not deducted from CET1, referred to respectively in Articles 48(4), 49(1), 49(2), 49(3) and 46(4) of CRR.
The instructions of row 650 of template C 04.00 will be amended accordingly.