+35. A material concern about the use of the alternative treatment should be based at least on any …

35. A material concern about the use of the alternative treatment should be based at least on any …

A material concern about the use of the alternative treatment should be based at least on any of the following reasons: WITH REGARD TO ‘TRI-PARTY REPURCHASE TRANSACTIONS’ AS SPECIFIED IN ARTICLE 403(3) CRR

Material concerns with regard to the institution

  • a) the use of the alternative treatment leads or is likely to lead to a breach of the large exposure limits of Article 395(1) of Regulation (EU) No 575/2013;
  • b) the institution is not complying with its reporting requirements in accordance with Articles 394 and 430 of Regulation (EU) No 575/2013;
  • c) the alternative treatment is not integrated or is only partially integrated in the risk management framework of the institution;
  • d) relevant findings from on-site inspections, internal and external audits or other supervisory assessments provide evidence of insufficient internal procedures to manage and/or monitor the use of the alternative treatment in accordance with these guidelines.

Material concerns with regard to the service agreement

  • e) the provisions included in the service agreement do not ensure compliance with applicable laws and regulatory requirements, including these guidelines. In particular:
  • i. the provisions of the service agreement regarding the revision of the specified limits would make it impossible for an institution to request the timely implementation of changes to prevent a breach of the large exposure limits of Article 395(1) of Regulation (EU) No 575/2013.
  • ii. the institution or a legitimate third party do not have the right to audit the services provided by the tri-party agent under the service agreement to verify that the tri-party agent has in place appropriate safeguards to prevent breaches of the limits specified by the institution as referred to in point (b) of Article 403(3) of Regulation (EU) No 575/2013;

Material concerns with regard to the tri-party agent

  • f) the tri-party agent is a regulated entity and its authorisation is subsequently withdrawn by its competent authority;
  • g) there is evidence that the tri-party agent has not complied with the requirements for the timely introduction of revisions to the specified limits in accordance with the terms of the service agreement, or it has not observed requests from the institution to exclude certain types of collateral or collateral issuers; or its monitoring systems do not provide for accurate and timely management of the specified limits.

4.5.3 Procedure for dealing with a material concern

1. Forbhreathnú

,

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

Ceanglais

3. Caighdeáin ghaolmhara

Caighdeáin
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