+CHAPTER 6 General requirements for own funds and eligible liabilities
---+Article 73 Distributions on instruments
------+Article 73 1.
------+Article 73 2.
------+Article 73 3.
------+Article 73 4.
------+Article 73 5.
------+Article 73 6.
------+Article 73 7.
---+Article 74 Holdings of capital instruments issued by regulated financial sector entities that do not qualify as regulatory capital
---+Article 75 Deduction and maturity requirements for short positions
---+Article 76 Index holdings of capital instruments and of liabilities
------+Article 76 1.
------+Article 76 2.
------+Article 76 3.
------+Article 76 4.
---+Article 77 Conditions for reducing own funds and eligible liabilities
------+Article 77 1.
------+Article 77 2.
---+Article 78 Supervisory permission to reduce own funds
------+Article 78 1.
------+Article 78 2.
------+Article 78 3.
------+Article 78 4.
------+Article 78 5.
---+Article 78a Permission to reduce eligible liabilities instruments
------+Article 78a 1.
------+Article 78a 2.
------+Article 78a 3.
---+Article 79 Temporary waiver from deduction from own funds and eligible liabilities
------+Article 79 1.
------+Article 79 2.
---+Article 79a Assessment of compliance with the conditions for own funds and eligible liabilities instruments
---+Article 80 Continuing review of the quality of own funds and eligible liabilities instruments
------+Article 80 1.
------+Article 80 2.
------+Article 80 3.
------+Article 80 4.

CHAPTER 6 General requirements for own funds and eligible liabilities

CHAPTER 6 General requirements for own funds and eligible liabilities

1. Overview

,
Summary Regulation
Article 73 Distributions on instruments
Article 74 Holdings of capital instruments issued by regulated financial sector entities that do not qualify as regulatory capital

Article 74

Holdings of capital instruments issued by regulated financial sector entities that do not qualify as regulatory capital

Institutions shall not deduct from any element of own funds direct, indirect or synthetic holdings of capital instruments issued by a regulated financial sector entity that do not qualify as regulatory capital of that entity. Institutions shall apply risk weights to such holdings in accordance with Part Three, Title II, Chapter 2.

Article 75 Deduction and maturity requirements for short positions

Article 75

Deduction and maturity requirements for short positions

▼M8

The maturity requirements for short positions referred to in point (a) of Article 45, point (a) of Article 59, point (a) of Article 69 and point (a) of Article 72h shall be considered to be met in respect of positions held where all the following conditions are met:

▼C2

(a) 

the institution has the contractual right to sell on a specific future date to the counterparty providing the hedge the long position that is being hedged;

(b) 

the counterparty providing the hedge to the institution is contractually obliged to purchase from the institution on that specific future date the long position referred to in point (a).

Article 76 Index holdings of capital instruments and of liabilities
Article 77 Conditions for reducing own funds and eligible liabilities
Article 78 Supervisory permission to reduce own funds
Article 78a Permission to reduce eligible liabilities instruments
Article 79 Temporary waiver from deduction from own funds and eligible liabilities
Article 79a Assessment of compliance with the conditions for own funds and eligible liabilities instruments

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.

Article 80 Continuing review of the quality of own funds and eligible liabilities instruments

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements
Source Requirement

3. Related Standards

Standards
Source Requirement