1.The transitional measure for standard equity risk set out in Article 308b(13) of Directive 2009/138/EC shall only apply to equities that were purchased on or before 1 January 2016 and which are not subject to the duration-based equity risk pursuant to Article 304 of that Directive.
2.Where equities are held within an collective investment undertaking or other investments packaged as funds, and where the look-through approach is not possible, the transitional measure set out in Article 308b(13) of Directive 2009/138/EC shall be applied to the proportion of equities held within the collective investment undertaking or investment packaged as funds in accordance with the target underlying asset allocation on 1 January 2016, provided the target allocation is available to the undertaking. The proportion of equities to which the transitional is applied shall be reduced annually in proportion to the asset turnover ratio of the collective investment undertaking or investment packaged as funds. Where the target allocation for equity investments of the collective investment undertaking or investment packaged as funds increases, the proportion of equities the transitional is applied to shall not increase.
1.Where an insurance or reinsurance undertaking invests in equity, either directly or through a collective investment undertaking, under a legislative programme which fulfils the conditions laid down in Article 133(5) of Regulation (EU) No 575/2013, the standard equity risk sub-module applicable to the part of such equity investments that in aggregate does not exceed 10 % of the undertaking’s eligible own funds shall be calculated in accordance with paragraphs 2 and 3 of this Article, subject to the approval of the supervisory authority.
2.The percentages laid down in Article 169 of this Regulation shall be reduced in proportion to the quantified reduction in credit risk achieved under the legislative programme.
3.Where the Commission maintains a public register of legislative programmes deemed to comply with the conditions of Article 133(5) of Regulation (EU) No 575/2013, any programme included in that register shall be deemed to achieve a reduction in overall credit risk of at least 5 %.