Question
It is not clear from the instructions whether a specific approval from the competent authorities is necessary to exclude IPS exposures from the leverage ratio exposure measure or the approval referred to in article 113(7) of CRR is sufficient.
Background on the question
According to Annex 11 of the ITS on Reporting (Regulation (EU) 451/2021) for row 0251 in C47, this data point shall contain “exposures that can benefit from the treatment laid down in Article 113(7) CRR, provided that all the conditions set out in points (a) to (i) of Article 113(7) CRR are met *and* where the competent authorities have given their approval”. It may be interpreted that the last condition implies that a specific approval is necessary in order to exclude IPS exposures from the leverage ratio exposure measure.
Answer
This question has been rejected because the issue it deals with is already explained in Annex XI to Regulation (EU) No 2021/451 (ITS on Supervisory Reporting) and Articles 429a(1) and 113(7) of Regulation (EU) 575/2013 (CRR).