Art. 79a · Assessment of compliance with the conditions for own funds and eligible liabilities instruments

Version in force 27 June 2019, Inserted +662 −0§

Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)

Applies from: not readable (an inserted provision states its own application date only in prose) why

Explanation, written by a model and checked against the cited text

This is a new article requiring institutions to look at the substantial features of instruments, not just their legal form, when assessing compliance with the own funds and eligible liabilities requirements.

It further states that this substantial-features assessment must take into account all related arrangements, including those not explicitly set out in the instrument's terms and conditions, to determine whether their combined economic effects are compliant with the objective of the relevant provisions.

Cited: Art. 79a, v2 (external, EUR-Lex)

v1 is the previous version, v2 this one.

Article 79a
Assessment of compliance with the conditions for own funds and eligible liabilities instruments
Institutions shall have regard to the substantial features of instruments and not only their legal form when assessing compliance with the requirements laid down in Part Two. The assessment of the substantial features of an instrument shall take into account all arrangements related to the instruments, even where those are not explicitly set out in the terms and conditions of the instruments themselves, for the purpose of determining that the combined economic effects of such arrangements are compliant with the objective of the relevant provisions.