{"id":3605,"date":"2016-05-31T16:27:04","date_gmt":"2016-05-31T14:27:04","guid":{"rendered":"https:\/\/www.fma.gv.at\/en\/?page_id=3605"},"modified":"2024-01-22T13:22:11","modified_gmt":"2024-01-22T12:22:11","slug":"pre-approval-of-reduction-of-own-funds-instruments","status":"publish","type":"page","link":"https:\/\/www.fma.gv.at\/en\/banks\/approval-procedures\/pre-approval-of-reduction-of-own-funds-instruments\/","title":{"rendered":"Articles 77-78 CRR  &#8211; Pre-approval of reduction of own funds instruments"},"content":{"rendered":"<?xml encoding=\"utf-8\" ?><p>Credit institutions must receive approval from the competent supervisory authority for the reduction of own funds instruments.<\/p><p>\n<div class=\"card\">  <div class=\"card-header\" id=\"heading-6a38451195ce3\">    <h2 class=\"mb-0\">      <button class=\"btn btn-link btn-block text-left p-0 d-flex align-items-center justify-content-between\" type=\"button\" data-toggle=\"collapse\" data-target=\"#collapse-heading-6a38451195ce3\" aria-expanded=\"false\" aria-controls=\"collapse-heading-6a38451195ce3\">        <span>Background and procedure<\/span>        <i class=\"fa-solid fa-chevron-down text-primary\" aria-hidden=\"true\"><\/i>      <\/button>    <\/h2>  <\/div>  <div id=\"collapse-heading-6a38451195ce3\" class=\"collapse\" aria-labelledby=\"heading-6a38451195ce3\">    <div class=\"card-body\"><p><\/p><p>The rules for the (pre-)approval for the reduction of own funds instruments are set out in Articles&nbsp;77 and&nbsp;78 of Regulation (EU) No&nbsp;575\/2013 (<abbr title=\"Capital Requirements Regulation\">CRR<\/abbr> ). A further clarification is made in Articles 27 to 32 of the Delegated Regulation on Own Funds Requirements (CDR 2014\/241\/EU, abbrev.: <abbr title=\"Commission Delegated Regulation on Own Funds\">CDR-OF<\/abbr> ).<\/p><p>In accordance with these provisions credit institutions must receive approval from the supervisory authority for the reduction of own funds instruments. A timeframe of three months shall generally apply for this procedure from the date of submission of the complete application.<\/p><p>In the case of groups of institutions, this obligation to obtain an authorisation at every level upon which the prudential requirements shall be applied, i.e. both on a consolidated basis as well as on an individual basis as well as in certain instances on a sub-consolidated basis.<\/p><p>    <\/div>  <\/div><\/div><p>\n<div class=\"card\">  <div class=\"card-header\" id=\"heading-6a38451195d6b\">    <h2 class=\"mb-0\">      <button class=\"btn btn-link btn-block text-left p-0 d-flex align-items-center justify-content-between\" type=\"button\" data-toggle=\"collapse\" data-target=\"#collapse-heading-6a38451195d6b\" aria-expanded=\"false\" aria-controls=\"collapse-heading-6a38451195d6b\">        <span>Information \/ Downloads about the FMA&#039;s Procedure<\/span>        <i class=\"fa-solid fa-chevron-down text-primary\" aria-hidden=\"true\"><\/i>      <\/button>    <\/h2>  <\/div>  <div id=\"collapse-heading-6a38451195d6b\" class=\"collapse\" aria-labelledby=\"heading-6a38451195d6b\">    <div class=\"card-body\"><p><\/p><p>The information sheet below provides a brief overview of the <abbr title=\"Financial Market Authority\">FMA<\/abbr>  procedure intended for this purpose including the application requirements.<\/p><p>According to Article 29 <abbr title=\"Commission Delegated Regulation on Own Funds\">CDR-OF<\/abbr>  the competent authority may pre-approve the measures listed in Article 77 <abbr title=\"Capital Requirements Regulation\">CRR<\/abbr>  for the reduction of own funds instruments (reduction, repurchase, redemption, call or repurchase of own funds instruments) subject to specific requirements being satisfied, for specific purposes and within specific or pre-defined limits. This may apply in the following scenarios:<\/p><ul>\n<li>Repurchases for market making purposes (Article 29 para. 3 <abbr title=\"Commission Delegated Regulation on Own Funds\">CDR-OF<\/abbr> ),<\/li>\n<li>Reductions for the purposes of being passed on to employees as part of their remuneration (Article&nbsp;29 para. 4&nbsp;<abbr title=\"Commission Delegated Regulation on Own Funds\">CDR-OF<\/abbr> ),<\/li>\n<li>&ldquo;immaterial&rdquo; (de minimis) reduction measures (Article 29 para. 5 <abbr title=\"Commission Delegated Regulation on Own Funds\">CDR-OF<\/abbr> ).<\/li>\n<\/ul><h3>Download:<\/h3><p>\n<a href=\"\/wp-content\/plugins\/dw-fma\/download.php?d=1077&nonce=df336d65d9849b0f\" class=\"internal single-document-reference piwik_download\">Informationsblatt f\u00fcr Kreditinstitute zur Bewilligung der Verringerung von Eigenmittelinstrumenten gem\u00e4\u00df Artikel 77 und 78 der VO 2013\/575\/EU (CRR) (<span class=\"sr-only\">Format: <\/span>pdf, <span class=\"sr-only\">Size: <\/span>58,1 KB, <span class=\"sr-only\">Language: <\/span>German)<\/a>\n<\/p><p>    <\/div>  <\/div><\/div><p>\n<\/p><h2>Further information<\/h2><p>\n<div id=\"reference-6a384511a02d8\" class=\"reference\"><h3 class=\"reference-heading\"><span class=\"fa-solid fa-scale-balanced fa-fw\" aria-hidden=\"true\"><\/span>Laws<\/h3><p><\/p><p><a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=CELEX:02013R0575-20240101\" class=\"external\" target=\"_blank\" rel=\"noopener\">Regulation (EU) No&nbsp;575\/2013 of the European Parliament and of the Council of 26&nbsp;June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No&nbsp;648\/2012<\/a><\/p><p><a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/PDF\/?uri=CELEX:02014R0241-20230509&amp;qid=1705925073193\" class=\"external\" target=\"_blank\" rel=\"noopener\">Commission Delegated Regulation (EU) No&nbsp;241\/2014 of 7&nbsp;January 2014 supplementing Regulation (EU) No&nbsp;575\/2013 of the European Parliament and of the Council with regard to regulatory technical standards for own funds and eligible liabilities requirements for institutions<\/a><\/p><p><\/div><p>\n<div id=\"reference-6a384511a0301\" class=\"reference\"><h3 class=\"reference-heading\"><span class=\"fa-solid fa-link fa-fw\" aria-hidden=\"true\"><\/span>Link<\/h3><p><\/p><p>\n<a href=\"https:\/\/webhost.fma.gv.at\/IncomingPlattform\/\" target=\"_blank\" rel=\"noopener\" class=\"external single-document-reference\">Incoming Platform<\/a>\n<\/p><p><\/div><p>\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit institutions must receive approval from the competent supervisory authority for the reduction of own funds instruments.Further information<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":4032,"menu_order":8,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-3605","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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