What changed, Commission Delegated Regulation (EU) No 1222/2014 of 8 October 2014 supplementing Directive 2013/36/EU

+ (1) ‘Relevant entity’ means a group headed by an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company, or an institution that is not a subsidiary of an EU parent institution, of an EU parent financial holding company or of an EU parent mixed f…
− (1) ‘Relevant entity’ means an EU parent institution or EU parent financial holding company or EU parent mixed financial holding company or an institution that is not a subsidiary of an EU parent institution or EU parent financial holding company or EU parent mixed financial holding company;
+ **1.** The EBA shall identify a sample of institutions or groups whose indicator values are to be used as reference values representing the global banking sector for the purpose of calculating the scores, taking into account internationally agreed standards, in particular the sample used by the Base…
− 1. The EBA shall identify a sample of institutions or groups whose indicator values are to be used as reference values representing the global banking sector for the purpose of calculating the scores, taking into account internationally agreed standards, in particular the sample used by the Basel Co…
+ **2.** The relevant authority shall report the indicator values of each relevant entity with a total exposure measure, calculated in accordance with Article 429(4) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (1), above EUR 200 billion that is authorised within its ju…
− 2. The relevant authority shall report the indicator values of each relevant entity with an exposure measure above EUR 200 billion which is authorised within its jurisdiction to the EBA not later than 31 July each year. The relevant authority shall ensure that the indicator values are identical to t…
+ **3.** The EBA shall compute the denominators, based on the indicator values reported by the relevant authority pursuant to paragraph 2, taking into account internationally agreed standards, in particular the denominators published by the Basel Committee on Banking Supervision for that year, and not…
− 3. The EBA shall compute the denominators, based on the indicator values reported by the relevant authority pursuant to paragraph 2, taking into account internationally agreed standards, in particular the denominators published by the Basel Committee on Banking Supervision for that year, and notify …
+ **1.** The relevant authority shall calculate the scores of the relevant entities that are included in the sample notified by the EBA and which are authorised in its jurisdiction not later than 1 September of each year.
− 1. The relevant authority shall calculate the scores of the relevant entities that are included in the sample notified by the EBA, which are authorised in its jurisdiction, not later than 15 December of each year. Where the relevant authority, in the exercise of sound supervisory judgment, designate…
+ **2.** Where the relevant authority, in the exercise of sound supervisory judgement, reallocates a G-SII from a lower subcategory to a higher subcategory or designates a relevant entity as a G-SII in accordance with points (a) or (b) of Article 131(10) of Directive 2013/36/EU, respectively, the rele…
− 2. The identification of a relevant entity as a G-SII and the allocation to a subcategory shall take effect as of the 1 January of the second year following the calendar year when the denominators have been determined in accordance with Article 3.
+ **3.** Where the relevant authority, in the exercise of sound supervisory judgement, reallocates a G-SII from a higher subcategory to a lower subcategory in accordance with point (c) of Article 131(10) of Directive 2013/36/EU, the relevant authority shall provide the EBA with a detailed statement in…
− ### Article 5 — Identification as G-SII, determination of the scores and allocation to subcategories
+ **4.** The reallocation or designation referred to in paragraph 2 shall take effect as of 1 January of the second year following the calendar year in which the denominators have been notified to the relevant authorities in accordance with Article 3(3). Where a G-SII is allocated to a lower subcatego…
− 1. The indicator values shall be based on reported data of the relevant entity of the preceding financial year-end, on a consolidated basis, and for banks authorised in third countries on data disclosed in accordance with internationally agreed standards. Relevant authorities may use indicator value…
+ **5.** The identification of a relevant entity as a G-SII by the relevant authority shall include the Legal Entity Identifiers (LEIs) of all legal entities included in the prudential scope of consolidation of the G-SII. The relevant entity identified by the relevant authority shall disclose to the r…
− 2. The relevant authority shall determine the score of each relevant entity of the sample as the simple average of the category scores subject to a maximum category score of 500 base points for the category measuring the substitutability. Each category score shall be calculated as the simple average…
+ ### Article 5 — Identification as G-SII, determination of the scores and allocation to subcategories
− 3. The lowest cut-off score shall be 130 base points. The subcategories shall be allocated as follows:
+ **1.** The indicator values shall be based on reported data of the relevant entity of the preceding financial year-end, on a consolidated basis, and for banks authorised in third countries on data disclosed in accordance with internationally agreed standards. Relevant authorities may use indicator v…
− (a) subcategory 1 shall encompass scores from 130 to 229 base points;
+ **2.** The relevant authority shall determine the score of each relevant entity of the sample as the simple average of the category scores subject to a maximum category score of 500 base points for the category measuring the substitutability. Each category score shall be calculated as the simple ave…
− (b) subcategory 2 shall encompass scores from 230 to 329 base points;
+ **3.** The lowest cut-off score shall be 130 base points. The subcategories shall be allocated as follows:(a) subcategory 1 shall encompass scores from 130 to 229 base points;(b) subcategory 2 shall encompass scores from 230 to 329 base points;(c) subcategory 3 shall encompass scores from 330 to 429…
− (c) subcategory 3 shall encompass scores from 330 to 429 base points;
+ **4.** The relevant authority shall identify a relevant entity as a G-SII where the score of that entity is equal to or higher than the lowest cut-off score. A decision to designate a relevant entity as a G-SII in the exercise of sound supervisory judgment in accordance with Article 131(10)(b) of Di…
− (d) subcategory 4 shall encompass scores from 430 to 529 base points;
+ **5.** The relevant authority shall allocate a G-SII to a subcategory in accordance with its score. A decision to re-allocate a G-SII from a lower subcategory to a higher subcategory in the exercise of sound supervisory judgment in accordance with Article 131(10)(a), of Directive 2013/36/EU shall be…
− (e) subcategory 5 shall encompass scores from 530 to 629 base points.
+ **5a.** The relevant authority shall determine an additional overall score for each relevant entity with cross-border activities across participating Member States as referred to in Article 4(1) of Regulation (EU) No 806/2014 of the European Parliament and of the Council (3) by following the process…
− 4. The relevant authority shall identify a relevant entity as a G-SII where the score of that entity is equal to or higher than the lowest cut-off score. A decision to designate a relevant entity as a G-SII in the exercise of sound supervisory judgment in accordance with Article 131(10)(b) of Direct…
+ For the purposes of the first subparagraph, the relevant authority shall consider as domestic all claims and liabilities vis-à-vis counterparties established in participating Member States as referred to in Article 4(1) of Regulation (EU) No 806/2014. For the categories referred to in Art 131(2), po…
− 5. The relevant authority shall allocate a G-SII to a subcategory in accordance with its score. A decision to re-allocate a G-SII from a lower subcategory to a higher subcategory in the exercise of sound supervisory judgment in accordance with Article 131(10)(a), of Directive 2013/36/EU shall be bas…
+ **5b.** On the basis of the additional overall score referred to in paragraph 5a, a decision to reallocate a G-SII from a higher subcategory to a lower subcategory, in the exercise of sound supervisory judgement in accordance with Article 131(10), point (c), of Directive 2013/36/EU, shall be based o…
− 6. The decisions referred to in paragraphs 4 and 5 may be supported by ancillary data, which shall not be indicators of the probability that the relevant entity fails. Such decisions shall comprise well documented and verifiable quantitative and qualitative information.
+ The additional overall score referred to in paragraph 5a may determine the reallocation of the G-SII by the relevant authority to the next lower subcategory as referred to in paragraph 3 of this Article. The reallocation of the G-SII to a lower subcategory shall be limited to a maximum of one subcat…
− ### Article 6 — Indicators
+ **6.** The decisions referred to in paragraphs 4, 5 and 5b shall be supported by ancillary indicators, which shall not be indicators of the probability that the relevant entity will fail. Such decisions shall be based on well-documented and verifiable quantitative and qualitative information.
− 1. The category measuring the size of the group shall consist of one indicator equal to the total exposure of the group.
+ ### Article 6 — Indicators
− 2. The category measuring the interconnectedness of the group with the financial system shall consist of all of the following indicators:
− 
− (a) intra-financial system assets;
+ **1.** The category measuring the size of the group shall consist of one indicator equal to the total exposure of the group.
− (b) intra-financial system liabilities;
+ **2.** The category measuring the interconnectedness of the group with the financial system shall consist of all of the following indicators:(a) intra-financial system assets;(b) intra-financial system liabilities;(c) securities outstanding.
− (c) securities outstanding.
+ **3.** The category measuring the substitutability of the services or of the financial infrastructure provided by the group shall consist of all of the following indicators:(a) assets under custody;(b) payments activity;(c) underwritten transactions in debt and equity markets.
− 3. The category measuring the substitutability of the services or of the financial infrastructure provided by the group shall consist of all of the following indicators:
+ **4.** The category measuring the complexity of the group shall consist of all of the following indicators:(a) notional amount of over-the-counter derivatives;(b) assets included in the level 3 of fair-value measured in accordance with Delegated Regulation (EU) No 1255/2012 (4);(c) trading and avail…
− (a) assets under custody;
+ **5.** The category measuring the cross border activity of the group shall consist of the following indicators:(a) cross-jurisdictional claims;(b) cross-jurisdictional liabilities.
− (b) payments activity;
+ **6.** For data reported in currencies other than the Euro, the relevant authority shall use an appropriate exchange rate taking into account the reference exchange rate published by the European Central Bank applicable on 31 December and international standards. For the payment activity indicator a…
− (c) underwritten transactions in debt and equity markets.
− 
− 4. The category measuring the complexity of the group shall consist of all of the following indicators:
− (a) notional amount of over-the-counter derivatives;
− 
− (b) assets included in the level 3 of fair-value measured in accordance with Delegated Regulation (EU) No 1255/2012 (2);
− 
− (c) trading and available-for-sale securities.
− 
− 5. The category measuring the cross border activity of the group shall consist of the following indicators:
− 
− (a) cross-jurisdictional claims;
− 
− (b) cross-jurisdictional liabilities.
− 
− 6. For data reported in currencies other than the Euro, the relevant authority shall use an appropriate exchange rate taking into account the reference exchange rate published by the European Central Bank applicable on 31 December and international standards. For the payment activity indicator as re…
− 
− ### Article 7 — Transitional provisions
− 
− By way of derogation from the first subparagraph of Article 3(1), the EBA shall determine the sample to identify a relevant entity as a G-SII for the year 2014 by 14 January 2015. The relevant authorities shall report the indicator values regarding relevant entities within that sample based on data …
− 
+ 
+ (1) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
+ (2) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).
+ 
+ (3) Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and a…
− (1) Commission Implementing Regulation (EU) No 1030/2014 of 29 September 2014 laying down implementing technical standards with regard to the uniform formats and date for the disclosure of the values used to identify global systemically important institutions according to Regulation (EU) No 575/2013…
+ (4) Commission Regulation (EU) No 1255/2012 of 11 December 2012 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Accounting Standard 12, Int…
− (2) Commission Regulation (EU) No 1255/2012 of 11 December 2012 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Accounting Standard 12, Int…