Scope of financial instruments covered

For the purposes of Article 4a(3), point (a) and (b)(i) of Directive 2013/36/EU:

• a) ‘ institutions supervised by their competent authorities’ should be understood as including institutions subject to the prudential supervision of competent authorities under Directive 2013/36/EU, including the European Central Bank with regard to matters relating to the tasks conferred on it by Regulation (EU) No 1024/2013;
• b) ‘affiliates’ should be understood as including those corporate entities, other than the supervised institutions’ parent undertakings or subsidiaries, which fall at least under any of the following categories:
• i. entities which are included in the consolidated financial statements drawn up by the supervised institution;
• ii. entities which fall within the same institutional protection scheme as referred to in Article 113(7) of Regulation (EU) 575/2013, as the supervised institution; or
• iii. entities which are permanently affiliated to the same central body as referred to in Article 10 of Regulation (EU) 575/2013 as the supervised institution.

For the purposes of the first subparagraph of Article 4a(3), point (a)(i), of Directive 2013/36/EU, competent authorities should require that a written investment management agreement is in place that provides for independent portfolio management.

For the purposes of the second subparagraph of Article 4a(3) of Directive 2013/36/EU, when establishing whether a third party or collective investment undertaking predominantly invests in instruments issued by or referenced to the entities referred to in Article 4a(3), point (a) of Directive 2013/36/EU, competent authorities should take into account, among others, the investment policy or strategy. 4.6.2 Cooling-off restrictions

Scope of staff or members of the competent authority’s governance body affected by the