Question
For the deduction under article 17 (1)(e), of RTS 241/2014, what is the correct COREP row for reporting this item? Is reporting under row 0529 “CET1 capital elements or deductions – other” appropriate?
Background on the question
An institution holds preference shares issued by a Singapore-incorporated investment holding company. The instruments do not qualify as CET1, AT1 or Tier 2. The investee is not regulated under Singaporean law, and consequently the exposure cannot be risk weighted based on article 74 CRR. Given that the investee meets the definition of a financial institution and the instruments are capital instruments, we expect that article 17(1)(e) RTS 241/2014 requires deduction of the exposure from own funds. However, what is the correct COREP row for reporting this item where no dedicated row appears to exist for Article 17 specifically?
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework, which is sufficiently clear and unambiguous.