Question
Where does an instrument that qualified as original own funds under the national transposition measure for point (ca) of Article 57 of Directive 2006/48/EC but does not qualify as Additional Tier 1 according to Article 489(4) fit in the sequence of write down and conversion from Article 48 of Directive 2014/59/EU? Will 48(1)(b), 48(1)(c) or 48(1)(d) be applicable to such an instrument?
Background on the question
A number of hybrid Tier 1 instruments no longer form part of own funds following introduction of the regulation (EU) No 575/2013. Directive 2014/59/EU links write down sequence to the regulatory treatment of an instrument which might require further clarification in case a subordinated instrument does not have regulatory recognition.
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.