Question ID
2022_6646
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - COREP (incl. IP Losses)
Article
36
Paragraph
1
Subparagraph
f
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
5,6
Type of submitter
Individual
Subject matter
Actual or contingent obligations to purchase own CET1 instruments value
Question

The deduction of direct holdings (1.1.1.1.4.1) will be based on the book value of the purchased equity shares similarly to Financial reporting, while the price used to value the share of the contingent obligation when purchasing our own CET1 instruments ( 1.1.1.1.5) is not clear if it should be on the nominal value, market value, book value shares valuation,…?

Background on the question

In the Common Equity C01.00 Calculation , the Own CET1 instruments & any Actual or contingent obligations to purchase own CET1 instruments are deducted as per CRR article 36 & related ITS listed below :

Article 36

Deductions from Common Equity Tier 1 items

“1. Institutions shall deduct the following from Common Equity Tier 1 items:

….

(f) direct, indirect and synthetic holdings by an institution of own Common Equity Tier 1 instruments, including own Common Equity Tier 1 instruments that an institution is under an actual or contingent obligation to purchase by virtue of an existing contractual obligation;

….”

 

ITS row 0080 -       1.1.1.1.4.1       (-) Direct holdings of CET1 instruments

“Point (f) of Article 36(1) and Article 42 CRR

Common Equity Tier 1 instruments included in item 1.1.1.1 held by institutions of the consolidated group.

The amount to be reported shall include holdings in the trading book calculated on the basis of the net long position, as stated in point (a) of Article 42 CRR”

 

ITS Row 0092 - 1.1.1.1.5 (-) Actual or contingent obligations to purchase own CET1 instruments

“Point (f) of Article 36(1) and Article 42 CRR

According to point (f) of Article 36(1) CRR, “own Common Equity Tier 1 instruments that an institution is under an actual or contingent obligation to purchase by virtue of an existing contractual obligation” shall be deducted”

Submission date
Rejected publishing date
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Status
Rejected question