Article 113(7)(g) of Regulation (EU) No 575/2013 provides that the multiple use of elements eligible for the calculation of own funds (‘multiple gearing’) and any inappropriate creation of own funds between IPS members must be eliminated. For the purposes of assessing compliance with this requirement the NCAs shall take into account whether:
((a))
the external auditor who is responsible for the audit of the consolidated or aggregated financial report can confirm that these practices have been eliminated;
((b))
any transactions by the members have led to the inappropriate creation of own funds at the individual, sub-consolidated or consolidated level.