What changed — Regulation (EU) No 575/2013

− Consolidated TEXT: 32013R0575 — EN — 27.06.2019
− 02013R0575 — EN — 27.06.2019 — 006.001
− (a) own funds requirements relating to entirely quantifiable, uniform and standardised elements of credit risk, market risk, operational risk, settlement risk and leverage;
− (b) requirements limiting large exposures;
− (c) liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk;
− (d) reporting requirements related to points (a), (b) and (c);
− (e) public disclosure requirements.
− (1) ‘credit institution’ means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;
− (2) ‘investment firm’ means a person as defined in point (1) of Article 4(1) of Directive 2004/39/EC, which is subject to the requirements imposed by that Directive, excluding the following:
− (a) credit institutions;
− (b) local firms;
− (c) firms which are not authorised to provide the ancillary service referred to in point (1) of Section B of Annex I to Directive 2004/39/EC, which provide only one or more of the investment services and activities listed in points 1, 2, 4 and 5 of Section A of Annex I to that Directive, and which a…
− (3) ‘institution’ means a credit institution or an investment firm;
− (4) ‘local firm’ means a firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by cleari…
− (5) ‘insurance undertaking’ means insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (
− (6) ‘reinsurance undertaking’ means reinsurance undertaking as defined in point (4) of Article 13 of Directive 2009/138/EC;
− (7) ‘collective investment undertaking’ or ‘CIU’ means a UCITS as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council (
− (8) ‘public sector entity’ means a non-commercial administrative body responsible to central governments, regional governments or local authorities, or to authorities that exercise the same responsibilities as regional governments and local authorities, or a non-commercial undertaking that is owned …
− (9) ‘management body’ means management body as defined in point (7) of Article 3(1) of Directive 2013/36/EU;
− (10) ‘senior management’ means senior management as defined in point (9) of Article 3(1) of Directive 2013/36/EU;
− (11) ‘systemic risk’ means systemic risk as defined in point (10) of Article 3(1) of Directive 2013/36/EU;
− (12) ‘model risk’ means model risk as defined in point (11) of Article 3(1) of Directive 2013/36/EU;
− (13) ‘originator’ means an originator as defined in point (3) of Article 2 of Regulation (EU) 2017/2402 (
− (14) ‘sponsor’ means a sponsor as defined in point (5) of Article 2 of Regulation (EU) 2017/2402;
− (14a) ‘original lender’ means an original lender as defined in point (20) of Article 2 of Regulation (EU) 2017/2402;
− (15) ‘parent undertaking’ means:
− (a) a parent undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
− (b) for the purposes of Section II of Chapters 3 and 4 of Title VII and Title VIII of Directive 2013/36/EU and Part Five of this Regulation, a parent undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking which effectively exercises a dominant influence over anoth…
− (16) ‘subsidiary’ means:
− (a) a subsidiary undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
− (b) a subsidiary undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking over which a parent undertaking effectively exercises a dominant influence.
− (17) ‘branch’ means a place of business which forms a legally dependent part of an institution and which carries out directly all or some of the transactions inherent in the business of institutions;
− (18) ‘ancillary services undertaking’ means an undertaking the principal activity of which consists of owning or managing property, managing data-processing services, or a similar activity which is ancillary to the principal activity of one or more institutions;
− (19) ‘asset management company’ means an asset management company as defined in point (5) of Article 2 of Directive 2002/87/EC or an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU, including, unless otherwise provided, third-country entities that carry out similar activities and that are…
− (20) ‘financial holding company’ means a financial institution, the subsidiaries of which are exclusively or mainly institutions or financial institutions, and which is not a mixed financial holding company; the subsidiaries of a financial institution are mainly institutions or financial institution…
− (21) ‘mixed financial holding company’ means mixed financial holding company as defined in point (15) of Article 2 of Directive 2002/87/EC;
− (22) ‘mixed activity holding company’ means a parent undertaking, other than a financial holding company or an institution or a mixed financial holding company, the subsidiaries of which include at least one institution;
− (23) ‘third-country insurance undertaking’ means third-country insurance undertaking as defined in point (3) of Article 13 of Directive 2009/138/EC;
− (24) ‘third-country reinsurance undertaking’ means third-country reinsurance undertaking as defined in point (6) of Article 13 of Directive 2009/138/EC;
− (25) ‘recognised third-country investment firm’ means a firm meeting all of the following conditions:
− (a) if it were established within the Union, it would be covered by the definition of an investment firm;
− (b) it is authorised in a third country;
− (c) it is subject to and complies with prudential rules considered by the competent authorities at least as stringent as those laid down in this Regulation or in Directive 2013/36/EU;
− (26) ‘financial institution’ means an undertaking other than an institution and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, in…
− (27) ‘financial sector entity’ means any of the following:
− (a) an institution;
− (b) a financial institution;
− (c) an ancillary services undertaking included in the consolidated financial situation of an institution;
− (d) an insurance undertaking;
− (e) a third-country insurance undertaking;
− (f) a reinsurance undertaking;
− (g) a third-country reinsurance undertaking;
− (h) an insurance holding company as defined in point (f) of Article 212(1) of Directive 2009/138/EC;
− (k) an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive;
− (l) a third-country undertaking with a main business comparable to any of the entities referred to in points (a) to (k);
− (28) ‘parent institution in a Member State’ means an institution in a Member State which has an institution, a financial institution or an ancillary services undertaking as a subsidiary or which holds a participation in an institution, financial institution or ancillary services undertaking, and whi…
− (29) ‘EU parent institution’ means a parent institution in a Member State which is not a subsidiary of another institution authorised in any Member State, or of a financial holding company or mixed financial holding company set up in any Member State;
− (29a) ‘parent investment firm in a Member State’ means a parent institution in a Member State that is an investment firm;
− (29b) ‘EU parent investment firm’ means an EU parent institution that is an investment firm;
− (29c) ‘parent credit institution in a Member State’ means a parent institution in a Member State that is a credit institution;
− (29d) ‘EU parent credit institution’ means an EU parent institution that is a credit institution;
− (30) ‘parent financial holding company in a Member State’ means a financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State;
− (31) ‘EU parent financial holding company’ means a parent financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
− (32) ‘parent mixed financial holding company in a Member State’ means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in that same Member State;
− (33) ‘EU parent mixed financial holding company’ means a parent mixed financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
− (34) ‘central counterparty’ or ‘CCP’ means a CCP as defined in point (1) of Article 2 of Regulation (EU) No 648/2012;
− (35) ‘participation’ means participation within the meaning of the first sentence of Article 17 of Fourth Council Directive 78/660/EEC of 25 July 1978 on the annual accounts of certain types of companies (
− (36) ‘qualifying holding’ means a direct or indirect holding in an undertaking which represents 10 % or more of the capital or of the voting rights or which makes it possible to exercise a significant influence over the management of that undertaking;
− (37) ‘control’ means the relationship between a parent undertaking and a subsidiary, as defined in Article 1 of Directive 83/349/EEC, or the accounting standards to which an institution is subject under Regulation (EC) No 1606/2002, or a similar relationship between any natural or legal person and a…
− (38) ‘close links’ means a situation in which two or more natural or legal persons are linked in any of the following ways:
− (a) participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking;
− (b) control;
− (c) a permanent link of both or all of them to the same third person by a control relationship;
− (39) ‘group of connected clients’ means any of the following:
− (a) two or more natural or legal persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others;
− (b) two or more natural or legal persons between whom there is no relationship of control as described in point (a) but who are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, in particular funding or repayme…
− (40) ‘competent authority’ means a public authority or body officially recognised by national law, which is empowered by national law to supervise institutions as part of the supervisory system in operation in the Member State concerned;
− (41) ‘consolidating supervisor’ means a competent authority responsible for the exercise of supervision on a consolidated basis in accordance with Article 111 of Directive 2013/36/EU;
− (42) ‘authorisation’ means an instrument issued in any form by the authorities by which the right to carry out the business is granted;
− (43) ‘home Member State’ means the Member State in which an institution has been granted authorisation;
− (44) ‘host Member State’ means the Member State in which an institution has a branch or in which it provides services;
− (45) ‘ESCB central banks’ means the national central banks that are members of the European System of Central Banks (ESCB), and the European Central Bank (ECB);
− (46) ‘central banks’ means the ESCB central banks and the central banks of third countries;
− (47) ‘consolidated situation’ means the situation that results from applying the requirements of this Regulation in accordance with Part One, Title II, Chapter 2 to an institution as if that institution formed, together with one or more other entities, a single institution;
− (48) ‘consolidated basis’ means on the basis of the consolidated situation;
− (49) ‘sub-consolidated basis’ means on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company, excluding a sub-group of entities, or on the basis of the consolidated situation of a parent institution, financial holding company or…
− (50) ‘financial instrument’ means any of the following:
− (a) a contract that gives rise to both a financial asset of one party and a financial liability or equity instrument of another party;
− (b) an instrument specified in Section C of Annex I to Directive 2004/39/EC;
− (c) a derivative financial instrument;
− (d) a primary financial instrument;
− (e) a cash instrument.
− (51) ‘initial capital’ means the amount and types of own funds specified in Article 12 of Directive 2013/36/EU for credit institutions and in Title IV of that Directive for investment firms;
− (52) ‘operational risk’ means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk;
− (53) ‘dilution risk’ means the risk that an amount receivable is reduced through cash or non-cash credits to the obligor;
− (54) ‘probability of default’ or ‘PD’ means the probability of default of a counterparty over a one-year period;
− (55) ‘loss given default’ or ‘LGD’ means the ratio of the loss on an exposure due to the default of a counterparty to the amount outstanding at default;
− (56) ‘conversion factor’ means the ratio of the currently undrawn amount of a commitment that could be drawn and that would therefore be outstanding at default to the currently undrawn amount of the commitment, the extent of the commitment being determined by the advised limit, unless the unadvised …
− (57) ‘credit risk mitigation’ means a technique used by an institution to reduce the credit risk associated with an exposure or exposures which that institution continues to hold;
− (58) ‘funded credit protection’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the right of that institution, in the event of the default of the counterparty or on the occurrence of other specified credit events relat…
− (59) ‘unfunded credit protection’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the obligation of a third party to pay an amount in the event of the default of the borrower or the occurrence of other specified credit…
− (60) ‘cash assimilated instrument’ means a certificate of deposit, a bond, including a covered bond, or any other non-subordinated instrument, which has been issued by an institution, for which the institution has already received full payment and which shall be unconditionally reimbursed by the ins…
− (61) ‘securitisation’ means a securitisation as defined in point (1) of Article 2 of Regulation (EU) 2017/2402;
− (62) ‘securitisation position’ means a securitisation position as defined in point (19) of Article 2 of Regulation (EU) 2017/2402;
− (63) ‘resecuritisation’ means a resecuritisation as defined in point (4) of Article 2 of Regulation (EU) 2017/2402;
− (64) ‘re-securitisation position’ means an exposure to a re-securitisation;
− (65) ‘credit enhancement’ means a contractual arrangement whereby the credit quality of a position in a securitisation is improved in relation to what it would have been if the enhancement had not been provided, including the enhancement provided by more junior tranches in the securitisation and oth…
− (66) ‘securitisation special purpose entity’ or ‘SSPE’ means a securitisation special purpose entity or SSPE as defined in point (2) of Article 2 of Regulation (EU) 2017/2402;
− (67) ‘tranche’ means a tranche as defined in point (6) of Article 2 of Regulation (EU) 2017/2402;
− (68) ‘marking to market’ means the valuation of positions at readily available close out prices that are sourced independently, including exchange prices, screen prices or quotes from several independent reputable brokers;
− (69) ‘marking to model’ means any valuation which has to be benchmarked, extrapolated or otherwise calculated from one or more market inputs;
− (70) ‘independent price verification’ means a process by which market prices or marking to model inputs are regularly verified for accuracy and independence;
− (71) ‘eligible capital’ means the following:
− (a) for the purposes of Title III of Part Two it means the sum of the following:
− (i) Tier 1 capital as referred to in Article 25, without applying the deduction in Article 36(1)(k)(i);
− (ii) Tier 2 capital as referred to in Article 71 that is equal to or less than one third of Tier 1 capital as calculated pursuant to point (i) of this point;
− (b) for the purposes of Article 97 it means the sum of the following:
− (i) Tier 1 capital as referred to in Article 25;
− (ii) Tier 2 capital as referred to in Article 71 that is equal to or less than one third of Tier 1 capital;
− (72) ‘recognised exchange’ means an exchange which meets all of the following conditions:
− (a) it is a regulated market or a third-country market that is considered to be equivalent to a regulated market in accordance with the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU of the European Parliament and of the Council (
− (b) it has a clearing mechanism whereby contracts listed in Annex II are subject to daily margin requirements which, in the opinion of the competent authorities, provide appropriate protection;
− (73) ‘discretionary pension benefits’ means enhanced pension benefits granted on a discretionary basis by an institution to an employee as part of that employee's variable remuneration package, which do not include accrued benefits granted to an employee under the terms of the company pension scheme…
− (74) ‘mortgage lending value’ means the value of immovable property as determined by a prudent assessment of the future marketability of the property taking into account long-term sustainable aspects of the property, the normal and local market conditions, the current use and alternative appropriate…
− (75) ‘residential property’ means a residence which is occupied by the owner or the lessee of the residence, including the right to inhabit an apartment in housing cooperatives located in Sweden;
− (76) ‘market value’ means, for the purposes of immovable property, the estimated amount for which the property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably,…
− (77) ‘applicable accounting framework’ means the accounting standards to which the institution is subject under Regulation (EC) No 1606/2002 or Directive 86/635/EEC;
− (78) ‘one-year default rate’ means the ratio between the number of defaults occurred during a period that starts from one year prior to a date T and the number of obligors assigned to this grade or pool one year prior to that date;
− (79) ‘speculative immovable property financing’ means loans for the purposes of the acquisition of or development or construction on land in relation to immovable property, or of and in relation to such property, with the intention of reselling for profit;
− (80) ‘trade finance’ means financing, including guarantees, connected to the exchange of goods and services through financial products of fixed short-term maturity, generally of less than one year, without automatic rollover;
− (81) ‘officially supported export credits’ means loans or credits to finance the export of goods and services for which an official export credit agency provides guarantees, insurance or direct financing;
− (82) ‘repurchase agreement’ and ‘reverse repurchase agreement’ mean any agreement in which an institution or its counterparty transfers securities or commodities or guaranteed rights relating to title to securities or commodities where that guarantee is issued by a recognised exchange which holds th…
− (83) ‘repurchase transaction’ means any transaction governed by a repurchase agreement or a reverse repurchase agreement;
− (84) ‘simple repurchase agreement’ means a repurchase transaction of a single asset, or of similar, non-complex assets, as opposed to a basket of assets;
− (85) ‘positions held with trading intent’ means any of the following:
− (a) proprietary positions and positions arising from client servicing and market making;
− (b) positions intended to be resold short term;
− (c) positions intended to benefit from actual or expected short-term price differences between buying and selling prices or from other price or interest rate variations;
− (86) ‘trading book’ means all positions in financial instruments and commodities held by an institution either with trading intent or to hedge positions held with trading intent in accordance with Article 104;
− (87) ‘multilateral trading facility’ means multilateral trading facility as defined in point 15 of Article 4 of Directive 2004/39/EC;
− (88) ‘qualifying central counterparty’ or ‘QCCP’ means a central counterparty that has been either authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation;
− (89) ‘default fund’ means a fund established by a CCP in accordance with Article 42 of Regulation (EU) No 648/2012 and used in accordance with Article 45 of that Regulation;
− (90) ‘pre-funded contribution to the default fund of a CCP’ means a contribution to the default fund of a CCP that is paid in by an institution;
− (91) ‘trade exposure’ means a current exposure, including a variation margin due to the clearing member but not yet received, and any potential future exposure of a clearing member or a client, to a CCP arising from contracts and transactions listed in points (a), (b) and (c) of Article 301(1), as w…
− (92) ‘regulated market’ means regulated market as defined in point (14) of Article 4 of Directive 2004/39/EC;
− (93) ‘leverage’ means the relative size of an institution's assets, off-balance sheet obligations and contingent obligations to pay or to deliver or to provide collateral, including obligations from received funding, made commitments, derivatives or repurchase agreements, but excluding obligations w…
− (94) ‘risk of excessive leverage’ means the risk resulting from an institution's vulnerability due to leverage or contingent leverage that may require unintended corrective measures to its business plan, including distressed selling of assets which might result in losses or in valuation adjustments …
− (95) ‘credit risk adjustment’ means the amount of specific and general loan loss provision for credit risks that has been recognised in the financial statements of the institution in accordance with the applicable accounting framework;
− (96) ‘internal hedge’ means a position that materially offsets the component risk elements between a trading book position and one or more non-trading book positions or between two trading desks;
− (97) ‘reference obligation’ means an obligation used for the purposes of determining the cash settlement value of a credit derivative;
+ Consolidated TEXT: 32013R0575 — EN — 25.12.2019
+ 02013R0575 — EN — 25.12.2019 — 007.001
+ ►M9
+ REGULATION (EU) 2019/2033 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019
+ L 314
+ 5.12.2019
+ (a)
+ own funds requirements relating to entirely quantifiable, uniform and standardised elements of credit risk, market risk, operational risk, settlement risk and leverage;
+ (b)
+ requirements limiting large exposures;
+ (c)
+ liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk;
+ (d)
+ reporting requirements related to points (a), (b) and (c);
+ (e)
+ public disclosure requirements.
+ ‘credit institution’ means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account;
+ ‘investment firm’ means a person as defined in point (1) of Article 4(1) of Directive 2004/39/EC, which is subject to the requirements imposed by that Directive, excluding the following:
+ (a)
+ credit institutions;
+ (b)
+ local firms;
+ (c)
+ firms which are not authorised to provide the ancillary service referred to in point (1) of Section B of Annex I to Directive 2004/39/EC, which provide only one or more of the investment services and activities listed in points 1, 2, 4 and 5 of Section A of Annex I to that Directive, and which are n…
+ (3)
+ ‘institution’ means a credit institution or an investment firm;
+ (4)
+ ‘local firm’ means a firm dealing for its own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, or dealing for the accounts of other members of those markets and being guaranteed by clearing m…
+ (5)
+ ‘insurance undertaking’ means insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (
+ (6)
+ ‘reinsurance undertaking’ means reinsurance undertaking as defined in point (4) of Article 13 of Directive 2009/138/EC;
+ (7)
+ ‘collective investment undertaking’ or ‘CIU’ means a UCITS as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council (
+ (8)
+ ‘public sector entity’ means a non-commercial administrative body responsible to central governments, regional governments or local authorities, or to authorities that exercise the same responsibilities as regional governments and local authorities, or a non-commercial undertaking that is owned by o…
+ (9)
+ ‘management body’ means management body as defined in point (7) of Article 3(1) of Directive 2013/36/EU;
+ (10)
+ ‘senior management’ means senior management as defined in point (9) of Article 3(1) of Directive 2013/36/EU;
+ (11)
+ ‘systemic risk’ means systemic risk as defined in point (10) of Article 3(1) of Directive 2013/36/EU;
+ (12)
+ ‘model risk’ means model risk as defined in point (11) of Article 3(1) of Directive 2013/36/EU;
+ (13)
+ ‘originator’ means an originator as defined in point (3) of Article 2 of Regulation (EU) 2017/2402 (
+ (14)
+ ‘sponsor’ means a sponsor as defined in point (5) of Article 2 of Regulation (EU) 2017/2402;
+ (14a)
+ ‘original lender’ means an original lender as defined in point (20) of Article 2 of Regulation (EU) 2017/2402;
+ (15)
+ ‘parent undertaking’ means:
+ (a)
+ a parent undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
+ (b)
+ for the purposes of Section II of Chapters 3 and 4 of Title VII and Title VIII of Directive 2013/36/EU and Part Five of this Regulation, a parent undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking which effectively exercises a dominant influence over another u…
+ (16)
+ ‘subsidiary’ means:
+ (a)
+ a subsidiary undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
+ (b)
+ a subsidiary undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking over which a parent undertaking effectively exercises a dominant influence.
+ (17)
+ ‘branch’ means a place of business which forms a legally dependent part of an institution and which carries out directly all or some of the transactions inherent in the business of institutions;
+ (18)
+ ‘ancillary services undertaking’ means an undertaking the principal activity of which consists of owning or managing property, managing data-processing services, or a similar activity which is ancillary to the principal activity of one or more institutions;
+ (19)
+ ‘asset management company’ means an asset management company as defined in point (5) of Article 2 of Directive 2002/87/EC or an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU, including, unless otherwise provided, third-country entities that carry out similar activities and that are subj…
+ (20)
+ ‘financial holding company’ means a financial institution, the subsidiaries of which are exclusively or mainly institutions or financial institutions, and which is not a mixed financial holding company; the subsidiaries of a financial institution are mainly institutions or financial institutions whe…
+ (21)
+ ‘mixed financial holding company’ means mixed financial holding company as defined in point (15) of Article 2 of Directive 2002/87/EC;
+ (22)
+ ‘mixed activity holding company’ means a parent undertaking, other than a financial holding company or an institution or a mixed financial holding company, the subsidiaries of which include at least one institution;
+ (23)
+ ‘third-country insurance undertaking’ means third-country insurance undertaking as defined in point (3) of Article 13 of Directive 2009/138/EC;
+ (24)
+ ‘third-country reinsurance undertaking’ means third-country reinsurance undertaking as defined in point (6) of Article 13 of Directive 2009/138/EC;
+ (25)
+ ‘recognised third-country investment firm’ means a firm meeting all of the following conditions:
+ (a)
+ if it were established within the Union, it would be covered by the definition of an investment firm;
+ (b)
+ it is authorised in a third country;
+ (c)
+ it is subject to and complies with prudential rules considered by the competent authorities at least as stringent as those laid down in this Regulation or in Directive 2013/36/EU;
+ (26)
+ ‘financial institution’ means an undertaking other than an institution and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, includi…
+ (27)
+ ‘financial sector entity’ means any of the following:
+ (a)
+ an institution;
+ (b)
+ a financial institution;
+ (c)
+ an ancillary services undertaking included in the consolidated financial situation of an institution;
+ (d)
+ an insurance undertaking;
+ (e)
+ a third-country insurance undertaking;
+ (f)
+ a reinsurance undertaking;
+ (g)
+ a third-country reinsurance undertaking;
+ (h)
+ an insurance holding company as defined in point (f) of Article 212(1) of Directive 2009/138/EC;
+ (k)
+ an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive;
+ (l)
+ a third-country undertaking with a main business comparable to any of the entities referred to in points (a) to (k);
+ (28)
+ ‘parent institution in a Member State’ means an institution in a Member State which has an institution, a financial institution or an ancillary services undertaking as a subsidiary or which holds a participation in an institution, financial institution or ancillary services undertaking, and which is…
+ (29)
+ ‘EU parent institution’ means a parent institution in a Member State which is not a subsidiary of another institution authorised in any Member State, or of a financial holding company or mixed financial holding company set up in any Member State;
+ (29a)
+ ‘parent investment firm in a Member State’ means a parent institution in a Member State that is an investment firm;
+ (29b)
+ ‘EU parent investment firm’ means an EU parent institution that is an investment firm;
+ (29c)
+ ‘parent credit institution in a Member State’ means a parent institution in a Member State that is a credit institution;
+ (29d)
+ ‘EU parent credit institution’ means an EU parent institution that is a credit institution;
+ (30)
+ ‘parent financial holding company in a Member State’ means a financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State;
+ (31)
+ ‘EU parent financial holding company’ means a parent financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
+ (32)
+ ‘parent mixed financial holding company in a Member State’ means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in that same Member State;
+ (33)
+ ‘EU parent mixed financial holding company’ means a parent mixed financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
+ (34)
+ ‘central counterparty’ or ‘CCP’ means a CCP as defined in point (1) of Article 2 of Regulation (EU) No 648/2012;
+ (35)
+ ‘participation’ means participation within the meaning of the first sentence of Article 17 of Fourth Council Directive 78/660/EEC of 25 July 1978 on the annual accounts of certain types of companies (
+ (36)
+ ‘qualifying holding’ means a direct or indirect holding in an undertaking which represents 10 % or more of the capital or of the voting rights or which makes it possible to exercise a significant influence over the management of that undertaking;
+ (37)
+ ‘control’ means the relationship between a parent undertaking and a subsidiary, as defined in Article 1 of Directive 83/349/EEC, or the accounting standards to which an institution is subject under Regulation (EC) No 1606/2002, or a similar relationship between any natural or legal person and an und…
+ (38)
+ ‘close links’ means a situation in which two or more natural or legal persons are linked in any of the following ways:
+ (a)
+ participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking;
+ (b)
+ control;
+ (c)
+ a permanent link of both or all of them to the same third person by a control relationship;
+ (39)
+ ‘group of connected clients’ means any of the following:
+ (a)
+ two or more natural or legal persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others;