4.1 Delineation of QAFM

A competent authority should ensure that a DGS only includes QAFM when determining whether the target level according to Article 10(2) DGSD is reached.

For the purpose of these guidelines, QAFM that were not directly contributed but derive from contributed funds should include recoveries following one of two methods described in section 4.2 and investment income following the method described in section 18.

For the purpose of these guidelines, AFM can only be counted as QAFM if the (extraordinary) contributions they stem from are free of any obligation of a DGS to repay them upon receiving recoveries, e.g. to the contributing institutions.

A competent authority should ensure that a DGS has adequate systems in place to keep track of the origin of funds.