CEBS published a survey of the national implementation of the current rules on own funds and in parallel an analysis of recent market trends in new capital instruments.
Both surveys are a response to the Commissions call for advice in relation to its review of the own funds rules in the EU.
The survey on supervisory rules highlights the main commonalities and differences in national regimes across Europe. In general, CEBS found that member states share a lot of commonalities with regard to the core objectives of own funds. Variations in own funds rules arise either from the flexibility granted by the CRD, or as a result of local market specificities, differences in national tax and company laws or in prudential approaches.
There is some variation in how competent authorities treat hybrid capital instruments that have similar characteristics to, but do not have the same quality as, core original own funds. This divergence is not addressed in the present EU legislation.
With regard to recent market trends, CEBS notes that the volume and diversity of hybrid instruments are developing fast. This is mainly due to return-on-equity considerations, low interest rates and a widening of the investor base.
Press release
Rules on own funds (main report)
Market trends (main report)
National rules (Annex 3)
Capital and reserves (Annex 4)
Interim profits (Annex 5)
Deductions (Annex 6)
Consolidation (Annex 7)
Hybrid instruments (Annex 8)
Additional own funds (Annex 9)
Ancillary own funds (Annex 10)
Questionnaire
© CESR - Committee of European Securities Regulators
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