S.I. No. 326/2026 - European Union (Capital Requirements) (Amendment) Regulations 2026

• “(2) With regard to the criterion set out in Regulation 15(2)(b)(vi), where a negative opinion is received by the Bank from the authority or body responsible for supervising the credit institution concerned in accordance with Directive 2015/849 within 30 working days of the request for approval, the negative opinion shall be duly taken into consideration by the Bank when assessing the proposed acquisition and may constitute a reasonable ground for opposition to a proposed acquisition.

• (3) The Bank may object to a proposed acquisition where the proposer acquirer is situated in a third-country listed as a high-risk third-country that has strategic deficiencies in its anti-money laundering and counter-terrorist financing regime in accordance with Article 9 of Directive 2015/849 or in a third-country that is subject to Union restrictive measures and it is assessed by the Bank that it affects the capacity of the proposed acquirer to have in place the required practices and processes to comply with the requirements of the anti-money laundering and counter-terrorist financing regime.”.

Insertion of Chapter 3 in Part 3 of Principal Regulations

14.

“Chapter 3

Material holdings, material transfers, mergers and divisions

Acquisition or divestiture of material holding in credit institution

Definition

25A. In this Chapter, ‘proposed acquirer’ means a credit institution, financial holding company or mixed financial holding company within the scope of paragraph (1) and (2) of Regulation 9A.

Restrictions on acquisition or divestiture of material holding in credit institution

25B. (1) A proposed acquirer shall not, directly or indirectly, acquire a material holding without having previously notified the Bank in writing indicating the size of the proposed acquisition and the relevant information specified in Regulation 25D.

• (2) For the purposes of paragraph (1), a holding shall be deemed to be material where it is equal to or more than 15 per cent of eligible capital of the proposed acquirer.

• (3) For the purposes of paragraph (1), where the proposed acquirer is a credit institution, the threshold referred to in paragraph (2) shall apply on both an individual basis and on the basis of the consolidated situation of the group.

• (4) Where the threshold referred to in paragraph (2) is only exceeded on an individual basis for a credit institution established in the State, the proposed acquirer shall notify the Bank and the Bank shall assess the proposed acquisition.

• (5) Where the threshold referred to in paragraph (2) is exceeded on an individual basis and on the basis of the consolidated situation of the group, the proposed acquirer shall notify the Bank and, where the Bank is not the consolidating supervisor, the relevant competent authority in another Member State, and that competent authority, acting as consolidating supervisor, shall also assess the proposed acquisition.

• (6) Where the proposed acquirer is a financial holding company or mixed financial holding company, the threshold referred to in paragraph (2) shall apply on the basis of the consolidated situation, and the Bank, where it is the consolidating supervisor, shall be the competent authority for the purposes of notification under paragraph (1).

Period for assessment of proposed acquisition

25C. (1) Within 10 working days after receiving a complete notification under paragraph (1) of Regulation 25B, the Bank shall acknowledge receipt of the notification in writing.

• (2) Within 60 days after the date of the written acknowledgement referred to in paragraph (1), the Bank shall carry out the assessment of the proposed acquisition in accordance with paragraphs (1) and (2) of Regulation 25D.

• (3) Where the proposed acquisition concerns a qualifying holding in a credit institution referred to in Regulation 10 –

  • (a) the proposed acquirer shall also be subject to the notification requirement and the assessment set out in this Chapter, and

  • (b) the time for the Bank to carry out both the assessment provided for in paragraphs (1) and (2) of Regulation 25D and the assessment referred to in Regulation 14 shall expire only when the later of the two relevant assessment periods expires.

• (4) In its acknowledgment of receipt of a notification referred to in paragraph (1), the Bank shall inform the proposed acquirer concerned of the date on which the assessment period will end.

• (5) During the assessment period in relation to a proposed acquisition, but no later than the fiftieth working day of that period, the Bank may request any further information necessary to complete the assessment of the acquisition.

• (6) Where the Bank makes such a request it shall acknowledge the receipt of any information received in response to the request within 10 working days.

• (7) A request under paragraph (5) shall be made in writing and shall specify or describe the additional information needed.

• (8) Where the Bank makes a request under paragraph (5), the assessment period is to be taken to be suspended for the shorter of –

  • (a) the period between the date of the request and the date of receipt of a response from the proposed acquirer concerned, providing all the requested information, or

  • (b) 20 working days.

• (9) The Bank may make further requests for further information to complete or clarify information already supplied but such a further request does not suspend the assessment period.

• (10) The Bank may extend to 30 working days the interruption referred to in paragraph (8) where –

  • (a) the entity being acquired is situated in, or is subject to the regulatory framework of, a third-country, or

  • (b) an exchange of information with other relevant authorities responsible for supervising the proposed acquirer in accordance with Directive 2015/849 is necessary to carry out the assessment provided for in paragraphs (1) and (2) of Regulation 25D.

• (11) Where the approval of a financial holding company or mixed financial holding company under paragraph (1) and (2) of Regulation 9A takes place concurrently with the assessment under paragraph (1) and (2) of Regulation 25D, the Bank shall coordinate, as appropriate, with the consolidating supervisor or, where different, the competent authority in the Member State where the financial holding company or mixed financial holding company is established.

• (12) Where paragraph (11) applies, the assessment period shall be suspended until the assessment procedure set out in Regulation 9C is complete.

• (13) Where the Bank opposes a proposed acquisition, it shall, within two working days of the completion of the assessment provided for in paragraph (1) and (2) of Regulation 25D, and before the end of the assessment period, inform the proposed acquirer in writing, providing the reasons for its opposition.

• (14) Where the Bank does not oppose in writing the proposed acquisition within the assessment period, it shall be deemed approved.

• (15) The Bank may set a maximum period for completion of the proposed acquisition and may extend such period, where appropriate.

Assessment of proposed acquisition

25D. (1) In its assessment of the notification of the proposed acquisition, the Bank shall assess the prospect for sound and prudent management of the proposed acquirer.

• (2) The Bank shall, in particular, assess the risks to which the proposed acquirer is or might be exposed to after the proposed acquisition, in accordance with the following criteria –

  • (a) whether the proposed acquirer will be able to comply and continue to comply with the prudential requirements set out in financial services legislation, and

  • (b) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or terrorist financing (within the meaning of Article 1 of Directive 2015/849) is being or has been committed or attempted, or that the proposed acquisition could increase the risk of money laundering or terrorist financing.

• (3) For the purpose of assessing the criteria set out in paragraph (2)(b), the Bank, in a case in which it is not the authority or body that supervises the institution in accordance with Directive (EU) 2015/849, shall consult that authority or body in the context of its verification.

• (4) The Bank shall neither impose any prior conditions in respect of the level of the holding that must be acquired nor examine a proposed acquisition in terms of the economic needs of the market.

• (5) The Bank shall publish a list of the information required to carry out the assessment which information shall be proportionate and appropriate to the nature of the proposed acquisition and the Bank shall not require any information that is not relevant for the prudential assessment under this Regulation.

• (6) The proposed acquirer shall provide the information required under paragraph (5) to the Bank at the time of the notification referred to in Regulation 25B(1).

• (7) Where 2 or more proposals to acquire material holdings in the same entity have been notified to the Bank, the Bank shall treat the proposed acquirers concerned in a non-discriminatory manner.

• (8) Where the proposed acquisition is conducted between entities of the same group as referred to in Article 113(6) of the Capital Requirements Regulation or between entities within the same institutional protection scheme as referred to in Article 113(7) of the Capital Requirements Regulation, the Bank shall not be required to carry out the assessment.

Bank may oppose certain acquisitions

25E. (1) The Bank may oppose a proposed acquisition only if –

- (a) there are reasonable grounds for doing so on the basis of the criteria set out in paragraphs (1) and (2) of Regulation 25D,

- (b) the information provided by the proposed acquirer is incomplete, or

- (c) the proposed acquirer has not provided information in response to a request under paragraph (5) or (6) of Regulation 25C.

• (2) With regard to the criteria set out in paragraph (2)(b) of Regulation 25D, a negative opinion in a case in which the Bank is not the authority or body that supervises the institution in accordance with Directive 2015/849, received from the relevant authority or body that supervises the institution within 30 working days of a request under paragraph (3) of Regulation 25D, shall be duly taken into consideration by the Bank when assessing the proposed acquisition and may constitute a reasonable ground for opposition to the proposed acquisition.

Bank to cooperate with competent authorities of other Member States in certain cases

25F. (1) In carrying out its assessment of a proposed acquisition, the Bank shall consult with the competent authorities of other relevant Member States if the proposed acquisition concerns any one of the following:

- (a) a credit institution, an insurance undertaking, a reinsurance undertaking, an investment firm or an asset management company, authorised in another Member State or in a sector other than that of the proposed acquirer;

- (b) a parent undertaking of a credit institution, of an insurance undertaking, of a reinsurance undertaking, of an investment firm or of an asset management company, authorised in another Member State or in a sector other than that of the proposed acquirer;

- (c) a legal person controlling a credit institution, an insurance undertaking, a reinsurance undertaking, an investment firm or an asset management company, authorised in another Member State or in a sector other than that in which the acquisition is proposed.

• (2) Where the proposed acquirer is a credit institution and the threshold referred to in paragraph (2) of Regulation 25B is only exceeded on an individual basis, the Bank, where it is not the consolidating supervisor, shall –

  • (a) notify the consolidating supervisor of the proposed acquisition within 10 working days following receipt of the notification by the proposed acquirer, and

  • (b) forward its assessment to the consolidating supervisor.

• (3) Where the proposed acquirer is a financial holding company or mixed financial holding company, the Bank, where it is the consolidating supervisor assessing the proposed acquisition, shall –

  • (a) notify the competent authority in the Member State where the proposed acquirer is established of the proposed acquisition within 10 working days following receipt of the notification by the proposed acquirer, and

  • (b) forward its assessment to the relevant competent authority in another Member State.

• (4) Where the proposed acquirer is a credit institution and the threshold referred to in paragraph (2) of Regulation 25B is exceeded on both an individual basis and on the basis of the consolidated situation of the group, the Bank shall coordinate its assessment with the competent authority or consolidating supervisor in another Member State, as the case may be.

• (5) The Bank, where it is not the consolidating supervisor referred to in paragraph (5) of Regulation 25B, shall fully cooperate with the relevant consolidating supervisor in another Member State.

• (6) The Bank, where it is the consolidating supervisor, shall prepare an assessment on the proposed acquisition and shall forward that assessment to the relevant competent authority in another Member State where the proposed acquirer is established.

• (7) The Bank shall cooperate with the consolidating supervisor or relevant competent authority in another Member State to reach a joint decision within two months of receipt of that assessment.

• (8) The joint decision shall be duly documented and reasoned.

• (9) The Bank, where it is the consolidating supervisor, shall communicate that joint decision to the proposed acquirer.

• (10) In the event that a joint decision is not taken within two months of receipt of the assessment, the Bank shall refrain from taking a decision and shall refer the matter to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010.

• (11) The Bank and the consolidating supervisor or relevant competent authority in another Member State shall adopt a joint decision in conformity with the decision of the EBA.

• (12) The Bank shall, without undue delay, provide competent authorities in other Member States with any information that is essential or relevant for the assessment of a proposed acquisition.

• (13) A proposal for decision by the Bank shall indicate any views or reservations expressed by the other relevant authorities.

Notification in case of divestiture

25G. A credit institution, financial holding company or mixed financial holding company within the scope of paragraph (1) and (2) of Regulation 9A shall not, directly or indirectly, dispose of a material holding as determined under paragraph (2) of Regulation 25B without having previously notified the Bank in writing of the size of the holding concerned.

Application to court where no notification given

25H. (1) A person who has acquired a material holding to which Regulations 25B, 25C and 25D(8) apply without having notified the Bank in accordance with those Regulations, may make an application to the court under this Regulation and the court may, if it is satisfied that the failure was inadvertent and that it is in the interests of justice to do so, make an order –

- (a) requiring the person to provide the Bank with the information required under Regulation 25D(5), and

- (b) requiring the Bank to carry out an assessment in accordance with Regulation 25D(2).

• (2) An application under paragraph (1) shall be on notice to the Bank and the Bank shall be entitled to appear, be heard and adduce evidence at the hearing of the application.

• (3) Notice of an application under paragraph (1) shall be served on the Bank at least 14 days before the date of hearing of the application.

• (4) An affidavit giving the names and addresses of, and the places and dates of service on, all persons who have been served with the notice of application, grounding affidavit and exhibits (if any) shall be filed by the applicant at least 4 days before the application is heard.

• (5) Where any person who ought under this Regulation to have been served has not been so served, the affidavit shall state that fact and the reason for it.

Application to court where acquisition opposed

25I. (1) Without prejudice to the Bank’s other functions or powers under financial services legislation, where an acquirer has acquired a material holding as referred to in Regulations 25B, 25C and 25D(8), despite the Bank having issued notice to the person that it opposes the acquisition, the Bank may apply to the court in a summary manner for any one or more of the following:

- (a) an order suspending the exercise by the acquirer concerned of any interest in or voting rights attaching to shares held by the acquirer in the target entity, or for votes cast to be null and void;

- (b) an order requiring the acquirer concerned to dispose of some or all of the material holding, interests or rights in the target entity within a period specified by the Court;

- (c) such other order as the Court considers appropriate.

• (2) In this Regulation, ‘target entity’ means the person in which the institution, financial holding company or mixed financial holding company has acquired a material holding within the meaning of Regulation 25B(2).”.

Insertion of Chapter 4 in Part 3 of Principal Regulations

15.

“Chapter 4

Material transfers of assets and liabilities

Notification of material transfers of assets and liabilities

25J. (1) A credit institution, financial holding company or mixed financial holding company within the scope of paragraphs (1) and (2) of Regulation 9A shall notify the Bank in writing, prior to any material transfer of assets or liabilities, which is executed either through a sale or any other type of transaction (“a proposed operation”).

• (2) Where a proposed operation involves only entities from the same group, those entities shall also be subject to paragraph (1).

• (3) Each individual entity involved in the same proposed operation shall notify the Bank in accordance with paragraph (1).

• (4) For the purposes of paragraph (1), a proposed operation shall be deemed material –

  • (a) for an entity where it is at least equal to 10 per cent of its total assets or liabilities, or

  • (b) where executed between entities in the same group, for any entity where it is at least equal to 15 per cent of its total assets or liabilities.

• (5) For the purpose of paragraph (4), for parent financial holding companies or parent mixed financial holding companies the qualifying percentages shall apply on the basis of their consolidated situation.

• (6) For the purpose of paragraph (4), the following shall not be taken into account when calculating the qualifying percentages –

  • (a) transfers of non-performing assets,

  • (b) transfers of assets for the purpose of being included in a cover pool as defined in Article 3, point (3), of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019²⁷ ,

  • (c) transfers of assets to be securitised, and

  • (d) transfers of assets or liabilities in the context of the use of resolution tools, powers and mechanisms provided for in Title IV of Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014²⁸ .

• (7) Within 10 working days after receiving a notification under paragraph (1), the Bank shall acknowledge receipt of the notification in writing.

Information obligations and penalties

25K. Where the entities fail to notify the proposed operation in advance in accordance with Regulation 25J(1), the Bank shall take appropriate measures under financial services legislation.”.

Insertion of Chapter 5 in Part 3 of Principal Regulations

16.

“Chapter 5

Mergers and Divisions

Scope of Chapter and definitions

25L. (1) This Chapter is without prejudice to the application of Council Regulation (EC) No 139/2004 of 20 January 2004²⁹ and Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017³⁰ .

• (2) Mergers and divisions that result from the law of another Member State giving effect to Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014³¹ shall not be subject to the obligations laid down in this Chapter.

• (3) In this Chapter –

‘merger’ means any of the following operations whereby –

- (a) one or more companies, on being dissolved without going into liquidation, transfer all or parts of their assets and liabilities to another existing company, the acquiring company, in exchange for the issue to their members of securities or shares representing the capital of that acquiring company and, where applicable, a cash payment not exceeding 10 per cent of the nominal value unless stated otherwise by the applicable national law, or, in the absence of a nominal value, of the accounting par value of those securities or shares,

- (b) one or more companies, on being dissolved without going into liquidation, transfer all or parts of their assets and liabilities to another existing company, the acquiring company, without the issue of any new securities or shares by the acquiring company, provided that one person holds directly or indirectly all the securities and shares in the merging companies or the members of the merging companies hold their securities and shares in the same proportion in all merging companies;

- (c) two or more companies, on being dissolved without going into liquidation, transfer all or parts of their assets and liabilities to a company that they form, the new company, in exchange for the issue to their members of securities or shares representing the capital of that new company and, where applicable, a cash payment not exceeding 10 per cent of the nominal value unless stated otherwise by the applicable national law, or, in the absence of a nominal value, of the accounting par value of those securities or shares, or

- (d) a company, on being dissolved without going into liquidation, transfers all or parts of its assets and liabilities to the company holding all the securities or shares representing its capital;

  ‘division’ means –

- (a) an operation whereby, after being wound up without going into liquidation, a company transfers to more than one company all its assets and liabilities in exchange for the allocation to the shareholders of the company being divided of securities or shares in the companies receiving contributions as a result of the division and, where applicable, a cash payment not exceeding 10 per cent of the nominal value unless stated otherwise by the applicable national law, or, in the absence of a nominal value, of the accounting par value of those securities or shares,

- (b) an operation whereby, after being wound up without going into liquidation, a company transfers to more than one newly-formed company all its assets and liabilities in exchange for the allocation to the shareholders of the company being divided of securities or shares in the recipient companies, and, where applicable, a cash payment not exceeding 10 per cent of the nominal value unless stated otherwise by the applicable national law, or, in the absence of a nominal value, of the accounting par value of those securities or shares;

- (c) an operation consisting of a combination of operations described under paragraphs (a) and (b),

- (d) an operation whereby a company being divided transfers part of its assets and liabilities to one or more recipient companies in exchange for the issue to the members of the company being divided of securities or shares in the recipient companies, in the company being divided or in both the recipient companies and the company being divided, and, where applicable, a cash payment not exceeding 10 per cent of the nominal value unless stated otherwise by the applicable national law, or, in the absence of a nominal value, of the accounting par value of those securities or shares, or

- (e) an operation whereby a company being divided transfers part of its assets and liabilities to one or more recipient companies in exchange for the issue to the company being divided of securities or shares in the recipient companies;

  ‘financial stakeholder’ means a credit institution, financial holding company or mixed financial holding company within the scope of paragraphs (1) and (2) of Regulation 9A;

  ‘proposed operation’ means a merger or division.

  *Restrictions on mergers and divisions*

  25M. (1) A financial stakeholder shall not carry out a proposed operation without having previously notified the Bank in writing.

• (2) The notification referred to in paragraph (1) shall be made after the adoption of the draft terms of the proposed operation and in advance of the completion of the operation.

• (3) Where the proposed operation is a merger that only involves financial stakeholders from the same group, including a group of credit institutions that are permanently affiliated to a central body and which is supervised as a group, the Bank shall not carry out the assessment set out in paragraphs (1) and (2) of Regulation 25O.

• (4) Where the proposed operation requires an authorisation in accordance with section 9 of the Act of 1971 or an approval in accordance with Regulation 9P, the Bank shall not carry out the assessment set out in paragraphs (1) and (2) of Regulation 25O.

Period for assessment of mergers and divisions

25N. (1) The Bank shall, within 10 working days after receiving –

- (a) a notification under Regulation 25M(1), or

- (b) further information submitted in response to a request made by the Bank under paragraph (4),

  acknowledge in writing receipt of the notification or the further information.

• (2) Where the proposed operation involves only financial stakeholders from the same group, within 60 days after the date of the written acknowledgement referred to in paragraph (1), the Bank shall carry out the assessment of the proposed operation in accordance with paragraphs (1) and (2) of Regulation 25O.

• (3) In its acknowledgement of receipt of a notification referred to in paragraph (1), the Bank shall inform the financial stakeholders concerned of the date on which the assessment period will end.

• (4) During the assessment period in relation to a proposed operation, the Bank may request any further information necessary to complete the assessment of the operation.

• (5) A request by the Bank under paragraph (4) shall be made in writing and shall specify or describe the additional information needed.

• (6) Where the proposed operation involves only financial stakeholders from the same group, the Bank may make a request under paragraph (4) no later than the fiftieth working day of the assessment period.

• (7) Where the Bank makes a request under paragraph (4), the assessment period is to be taken to be suspended for the period between the date of the request and the date of receipt of a response from the financial stakeholder providing all the requested information, which suspension shall not exceed 20 working days.

• (8) The Bank may make further requests for further information to complete or clarify information already supplied but such a further request does not result in a suspension of the assessment period.

• (9) The Bank may extend to 30 working days the suspension referred to in paragraph (7) where –

  • (a) at least one of the financial stakeholders is situated in, or is subject to the regulatory framework of, a third-country, or

  • (b) an exchange of information with other relevant authorities responsible for supervising the financial stakeholder in accordance with Directive (EU) 2015/849 is necessary to carry out the assessment provided for in paragraphs (1) and (2) of Regulation 25O.

• (10) The proposed operation shall not be completed before the Bank has issued a positive opinion.

• (11) Within two working days of the completion of its assessment, the Bank shall issue, in writing, its reasoned positive or negative opinion to the financial stakeholders.

• (12) The financial stakeholders shall transmit the reasoned opinion referred to in paragraph (11) to the relevant authorities responsible for scrutiny of the proposed operation.

• (13) Where the proposed operation involves only financial stakeholders from the same group and the Bank does not oppose the proposed operation within the assessment period in writing, it shall be deemed to receive a positive opinion.

• (14) A reasoned positive opinion issued by the Bank may include a limited time period within which the proposed operation must be carried out.

Assessment of mergers and divisions

25O. (1) The Bank shall, in order to ensure the soundness of the prudential profile of the financial stakeholders after the completion of the proposed operation and in particular to address the risks to which the financial stakeholders are or might be exposed in the course of the proposed operation and the risks to which the entity resulting from the proposed operation might be exposed, assess the proposed operation in accordance with the following criteria:

- (a) the reputation of the financial stakeholders involved in the proposed operation;

- (b) the financial soundness of the financial stakeholders involved in the proposed operation, in particular in relation to the type of business pursued and envisaged for the entity resulting from the proposed operation;

- (c) whether the entity resulting from the proposed operation will be able to comply and continue to comply with the prudential requirements laid down in these Regulations, the Capital Requirements Regulation, and where applicable, other Union legal acts, in particular Directives 2002/87/EC and 2009/110/EC of the European Parliament and of the Council of 16 September 2009<sup><a href="/ie/law/IE-2026-si-326/3#fn-32">32</a></sup> ;

- (d) whether the implementation plan of the proposed operation is realistic and sound from a prudential perspective;

- (e) whether there are reasonable grounds to suspect that, in connection with the proposed operation, money laundering or terrorist financing (within the meaning of Article 1 of Directive 2015/849) is being or has been committed or attempted, or that the proposed operation could increase the risk of money laundering or terrorist financing.

• (2) The Bank shall monitor the implementation plan referred to in paragraph (1)(d) until the proposed operation is complete.

• (3) For the purpose of assessing the criteria set out in paragraph (1)(e), the Bank, in a case in which it is not the authority or body that supervises the financial stakeholders in accordance with Directive 2015/849, shall consult that authority or body in the context of its verifications.

• (4) The Bank shall not examine a proposed operation in terms of the economic needs of the market.

• (5) The Bank shall publish a list of the information required to carry out the assessment referred to in paragraphs (1) and (2) which information shall be proportionate and appropriate to the nature of the proposed operation and the Bank shall not require any information that is not relevant for the prudential assessment under this Regulation.

• (6) The financial stakeholders shall provide the information required under paragraph (5) to the Bank at the time of the notification referred to in paragraph (1) of Regulation 25M.

Bank may issue negative opinion of certain mergers or divisions

25P. (1) The Bank may issue a negative opinion of a proposed operation only if –

- (a) the criteria set out in paragraph (1) of Regulation 25O are not met,

- (b) the information provided by the financial stakeholders is incomplete, or

- (c) the financial stakeholders have not provided the information in response to a request under paragraphs (4) or (8) of Regulation 25N.

• (2) With regard to the criteria set out in paragraph (1)(e) of Regulation 25O, a negative opinion in a case in which the Bank is not the authority or body that supervises the financial stakeholders in accordance with Directive 2015/849, received from the relevant authority or body that supervises the financial stakeholders within 30 working days of the initial request shall be duly taken into consideration by the Bank when assessing the proposed operation and may constitute a reasonable ground for a negative opinion.

Bank to cooperate with competent authorities of other Member States in certain cases

25Q. (1) The Bank shall consult with the authorities entrusted with the public duty of supervising other financial sector entities concerned where the proposed operation involves, in addition to the financial stakeholders, entities that are any of the following:

- (a) a credit institution, an insurance undertaking, a reinsurance undertaking, an investment firm or an asset management company, authorised in another Member State or in a sector other than that in which the proposed operation is undertaken;

- (b) a parent undertaking of –

    - (i) a credit institution,

    - (ii) an insurance undertaking;

    - (iii) a reinsurance undertaking,

    - (iv) an investment firm, or

    - (v) an asset management company,

      authorised in another Member State or in a sector other than that in which the proposed operation is undertaken;

- (c) a legal person controlling –

    - (i) a credit institution,

    - (ii) an insurance undertaking,

    - (iii) a reinsurance undertaking,

    - (iv) an investment firm, or

    - (v) an asset management company,

      authorised in another Member State or in a sector other than that in which the proposed operation is undertaken.

• (2) The Bank shall, without undue delay, provide competent authorities in other Member States with any information that is essential or relevant for the assessment of a proposed acquisition and the Bank shall communicate, upon request or on its own initiative, all relevant information for the assessment.

• (3) An opinion by the Bank as the competent authority of a financial stakeholder shall indicate any views or reservations expressed by the competent authority that supervises one or more of the entities mentioned in paragraph (1).

• (4) The Bank shall seek to coordinate its assessment with other relevant authorities and to ensure consistency in their opinions.

Application to court where no notification of merger or division given

25R. (1) Where a financial stakeholder failed to notify a proposed operation in advance in accordance with paragraph (1) of Regulation 25M, the Bank may make an application to the court under this Regulation and the court may, if it is satisfied that the failure to notify was inadvertent and that it is in the interests of justice to do so, make an order –

- (a) requiring the financial stakeholder to provide the Bank with the information necessary to complete the assessment under paragraphs (1) and (2) of Regulation 25O, and

- (b) requiring the Bank to carry out an assessment in accordance with paragraphs (1) and (2) of Regulation 25O.

• (2) An application under paragraph (1) shall be on notice to the Bank and the Bank shall be entitled to appear, be heard and adduce evidence at the hearing of the application.

• (3) Notice of an application under paragraph (1) shall be served on the Bank at least 14 days before the date of hearing of the application.

• (4) An affidavit giving the names and addresses of, and the places and dates of service on, all persons who have been served with the notice of application, grounding affidavit and exhibits (if any) shall be filed by the applicant at least 4 days before the application is heard.”.

Amendment of Regulation 53 of Principal Regulations

17.

“53. The Bank shall have all information gathering and investigatory powers that are necessary for the exercise of its functions and, without prejudice to other relevant provisions of these Regulations or the Capital Requirements Regulation, those powers shall include:

• (a) the power to require the following natural or legal persons to provide all information that is necessary in order to enable the Bank to carry out its tasks under these Regulations and the Capital Requirements Regulation, including information to be provided at recurring intervals and in specified formats for supervisory and related statistical purposes:

  • (i) institutions established in the State;

  • (ii) financial holding companies established in the State;

  • (iii) mixed-financial holding companies established in the State;

  • (iv) mixed-activity holding companies established in the State;

  • (v) staff of the entities referred to in subparagraphs (i) to (iv);

  • (vi) third parties to whom the entities referred to in subparagraphs (i) to (iv) have outsourced operational functions or activities, including ICT third-party service providers referred to in Chapter V of the DORA Regulation;

• (b) the power to conduct all necessary investigations of any person referred to in paragraph (a)(i) to (vi) established or located in the State where necessary to carry out the tasks of the Bank, including the power to:

  • (i) require the submission of documents;

  • (ii) examine the books and records of the persons referred to in paragraph (a)(i) to (vi) and take copies or extracts from such books and records;

  • (iii) obtain written or oral explanations from any person referred to in paragraph (a)(i) to (vi) or their representatives or staff;

  • (iv) interview any other person who consents to be interviewed for the purpose of collecting information relating to the subject matter of an investigation;

  • (v) conduct, subject to other conditions set out in Union law, all necessary inspections at the business premises of the legal persons referred to in paragraph (a)(i) to (vi) and any other undertaking included in consolidated supervision where the Bank is the consolidating supervisor, subject to the prior notification of the competent authorities concerned and where an inspection requires authorisation by a court, such authorisation shall be applied for.”.

Amendment of Regulation 54 of Principal Regulations

18.

• (a) in paragraph (1) –

• (i) in subparagraph (b) –

• (I) in clause (i), by the substitution of “,mixed-financial holding company or intermediate EU parent undertaking” for “or mixed-financial holding company”,

• (II) by the substitution of the following clause for clause (iii):

• “(iii) in the case of a legal person, administrative pecuniary penalties of up to 10 per cent of the total annual net turnover of the undertaking;”,

• (III) in clause (vi), by the substitution of “contraventions referred to in paragraph (2);” for “contraventions referred to in paragraph (2).”, and

• (IV) by the insertion of the following clause after clause (vi):

• “(vii) subject to Regulation 150, a temporary ban against a member of the management body or any other natural person who is held responsible for the breach from exercising functions in institutions.”,

• (b) by the insertion of the following paragraphs after paragraph (1):

• “(1A) Notwithstanding Part IIIC of the Act of 1942 and the sanctions set out in section 33AQ of the Act of 1942, in respect of the contraventions listed in paragraph (2) and where a regulated financial service provider has failed to comply with an order under paragraph (1)(b)(ii), the Bank may impose a periodic penalty –

  • (a) in the case of a legal person, of up to 5% of the average daily net turnover, or

  • (b) in the case of a natural person, of up to €50,000,

  which, in the case of a continuing contravention, the legal or natural person, as the case may be, shall be obliged to pay in respect of each day on which the contravention continues until compliance is restored.

• (1B) The periodic penalty referred to in paragraph (1A) may be imposed for a period of up to six months from the date set out in the order made under paragraph (1)(b)(ii).

• (1C) The application of a periodic penalty under paragraph (1A) shall not prevent the Bank from imposing administrative pecuniary penalties or other administrative measures in accordance with these Regulations for the same breach.”,

• (c) in paragraph (2) –

• (i) by the substitution of the following subparagraph for subparagraph (f):

• “(f) carrying out at least one of the activities referred to in point (1)(b) of Article 4(1) of the Capital Requirements Regulation and meeting the threshold indicated in the said point (1)(b) without being authorised as a credit institution, except for entities requesting a waiver under section 31R of the Act of 1971;”,

• (ii) by the insertion of the following subparagraphs after subparagraph (f):

• “(g) a proposed acquirer within the meaning of Regulation 25A fails to notify the Bank of a direct or indirect acquisition of a material holding;

• (h) any of the entities referred to in Regulation 25G fail to notify the Bank of a direct or indirect disposal of a material holding that exceeds 15 per cent of the eligible capital of that entity;

• (i) any of the entities referred to in Regulation 25J(1) execute a material transfer of assets and liabilities without notifying the Bank;

• (j) a financial stakeholder referred to in paragraph (1) of Regulation 25M carries out a merger or division in breach of that Regulation.”, and

• (d) by the insertion of the following paragraphs after paragraph (4):

• “(5) The total annual net turnover referred to in paragraph (1)(b)(iii) shall be the sum of the following items, determined in accordance with Annexes III and IV to Commission Implementing Regulation (EU) 2021/451 of 17 December 2020³³ :

  • (a) interest income;

  • (b) interest expenses;

  • (c) expenses on share capital repayable on demand;

  • (d) dividend income;

  • (e) fee and commission income;

  • (f) fee and commission expenses;

  • (g) gains or losses on financial assets and liabilities held for trading, net;

  • (h) gains or losses on financial assets and liabilities designated at fair value through profit or loss, net;

  • (i) gains or losses from hedge accounting, net;

  • (j) exchange differences (gain or loss), net;

  • (k) other operating income;

  • (l) other operating expenses.

• (6) The basis for the calculation in paragraph (5) shall be the most recent yearly supervisory financial information which produces an indicator above zero and where the legal person referred to in paragraph (1)(b)(iii) is not subject to Commission Implementing Regulation (EU) 2021/451 of 17 December 2020³⁴ , the relevant total annual net turnover shall be the total annual net turnover or the corresponding type of income in accordance with the applicable accounting framework.

• (7) Where the undertaking concerned is part of a group, the relevant total annual net turnover shall be the total net turnover resulting from the consolidated account of the ultimate parent undertaking.”.

Amendment of Regulation 55 of Principal Regulations

19.

• (a) by the substitution of the following paragraph for paragraph (1):

• “(1) Notwithstanding Part IIIC of the Act of 1942 and the sanctions set out in section 33AQ of the Act of 1942, sanctions may be imposed by the Bank –

  • (a) following an inquiry under section 33AO of the Act of 1942, or

  • (b) in accordance with section 33AR or section 33AV of the Act of 1942,

  for the contraventions listed in paragraph (3) and may include any or all of the following:

  - (i) a public statement that identifies the natural person, institution, financial holding company, mixed-financial holding company or intermediate EU parent undertaking responsible, and the nature of the breach concerned;
  
  - (ii) an order requiring the natural or legal person responsible to cease, and desist from, the conduct concerned;
  
  - (iii) in the case of an institution, withdrawal of the licence or authorisation of the institution in accordance with the enactment under which the licence or authorisation was granted;
  
  - (iv) subject to Regulation 150, a temporary ban against a member of the institution’s management body or any other natural person, who is held responsible, from exercising functions in institutions;
  
  - (v) in the case of a legal person, administrative pecuniary penalties of up to 10 per cent of the total annual net turnover of the undertaking;
  
  - (vi) in the case of a natural person, administrative pecuniary penalties of up to €5 million;
  
  - (vii) administrative pecuniary penalties of up to twice the amount of the profits gained or losses avoided because of the breach where those can be determined.”,
  

• (b) by the insertion of the following paragraphs after paragraph (1):

• “(1A) Notwithstanding Part IIIC of the Act of 1942 and the sanctions set out in section 33AQ of the Act of 1942, in respect of the contraventions listed in paragraph (3) and where a regulated financial service provider has failed to comply with an order under clause (ii) of paragraph (1), the Bank may impose a periodic penalty –

  • (a) in the case of a legal person, of up to 5% of the average daily net turnover, or

  • (b) in the case of a natural person, of up to €50,000,

  which, in the case of a continuing contravention, the legal or natural person, as the case may be, shall be obliged to pay in respect of each day on which the contravention continues until compliance is restored.

• (1B) The periodic penalty referred to in paragraph (1A) may be imposed for a period of up to six months from the date set out in the order made under clause (ii) of paragraph (1).

• (1C) The application of a periodic penalty under paragraph (1A) shall not prevent the Bank from imposing administrative pecuniary penalties or other administrative measures in accordance with these Regulations for the same breach.”,

• (c) in paragraph (3) –

• (i) in subparagraph (d), by the substitution of “governance arrangements and gender neutral remuneration policies” for “governance arrangements”,

• (ii) by the deletion of subparagraphs (e), (f), (i), (k), (l),

• (iii) by the substitution of the following subparagraph for subparagraph (j):

• “(j) an institution fails to maintain a net stable funding ratio in breach of Article 413 or 428b of the Capital Requirements Regulation or repeatedly and persistently fails to hold liquid assets in breach of Article 412 of that Regulation;”, and

• (iv) by the insertion of the following paragraphs after paragraph (q):

• “(r) an institution fails to meet the own funds requirements laid down in Article 92(1) of the Capital Requirements Regulation;

• (s) an institution or a natural person repeatedly fails to comply with a decision imposed by the Bank in accordance with these Regulations or in accordance with the Capital Requirements Regulation;

• (t) an institution fails to comply with the remuneration requirements laid down in Regulations 80, 82 and 83;

• (u) an institution acts without the prior permission of the Bank where these Regulation or the Capital Requirements Regulation require the institution to obtain such prior permission or an institution obtained such permission through false statements or does not comply with the conditions under which such permission was granted;

• (v) an institution fails to meet the requirements in relation to the composition, conditions, adjustments and deductions related to own funds as laid down in Part Two of the Capital Requirements Regulation;

• (w) an institution fails to meet the requirements in relation to its large exposures to a client or a group of connected clients laid down in Part Four of the Capital Requirements Regulation;

• (x) an institution fails to meet the requirements in relation to the calculation of the leverage ratio, including the application of derogations laid down in Part Seven of the Capital Requirements Regulation;

• (y) an institution fails to report information or provides incomplete or inaccurate information to the Bank in relation to the data referred to in Article 430(1) to (3) and in Article 430a of the Capital Requirements Regulation;

• (z) an institution fails to comply with the data collection and governance requirements laid down in Part Three, Title III, Chapter 2, of the Capital Requirements Regulation;

• (za) an institution fails to meet the requirements in relation to the calculation of the risk-weighted exposure amounts or own funds requirements or fails to have in place the governance arrangements laid down in Part Three, Titles II to VI, of the Capital Requirements Regulation;

• (zb) an institution fails to meet the requirements in relation to the calculation of the liquidity coverage ratio or the net stable funding ratio as laid down in Part Six, Titles I and IV of the Capital Requirements Regulation and in Delegated Regulation (EU) 2015/61 of 10 October 2014³⁵ .”, and

• (d) by the insertion of the following paragraphs after paragraph (4):

• “(5) The total annual net turnover referred to in clause (v) of paragraph (1) shall be the sum of the following items, determined in accordance with Annexes III and IV to Commission Implementing Regulation (EU) 2021/451 of 17 December 2020³⁶ :

  • (a) interest income;

  • (b) interest expenses;

  • (c) expenses on share capital repayable on demand;

  • (d) dividend income;

  • (e) fee and commission income;

  • (f) fee and commission expenses;

  • (g) gains or losses on financial assets and liabilities held for trading, net;

  • (h) gains or losses on financial assets and liabilities designated at fair value through profit or loss, net;

  • (i) gains or losses from hedge accounting, net;

  • (j) exchange differences (gain or loss), net;

  • (k) other operating income;

  • (l) other operating expenses.

• (6) The basis for the calculation in paragraph (5) shall be the most recent yearly supervisory financial information which produces an indicator above zero and where the legal person referred to in paragraph (1)(b)(v) is not subject to Commission Implementing Regulation (EU) 2021/451 of 17 December 2020³⁷ , the relevant total annual net turnover shall be the total annual net turnover or the corresponding type of income in accordance with the applicable accounting framework.

• (7) Where the undertaking concerned is part of a group, the relevant total annual net turnover shall be the total annual net turnover resulting from the consolidated account of the ultimate parent undertaking.”.

Amendment of Regulation 58 of Principal Regulations

20.

• (a) by the designation of the existing provision as paragraph (1),

• (b) in paragraph (1) –

• (i) by the substitution of “the type and level of administrative penalties or other administrative measures” for “the type of administrative penalties or other administrative measures and the level of administrative pecuniary penalties”,

• (ii) in subparagraph (g), by the substitution of “of the breach;” for “of the breach.”, and

• (iii) by the insertion of the following subparagraphs after subparagraph (g):

• “(h) criminal penalties previously imposed for the same breach on the natural or legal person responsible for that breach;

• (i) the financial strength of the natural or legal person responsible of the breach, as indicated, inter alia by the total turnover of a legal person or the annual income of a natural person.”, and

• (c) by the insertion of the following paragraphs after paragraph (1):

• “(2) In the exercise of the powers of the Bank to impose administrative penalties and other administrative measures, the Bank shall cooperate closely with competent authorities in other Member States to ensure that those penalties and measures produce the results aimed at by these Regulations.

• (3) The Bank shall also coordinate its actions with competent authorities in other Member States to prevent accumulation and overlap when applying administrative penalties and other administrative measures to cross-border cases.

• (4) The Bank, together with the competent authorities in other Member States, may apply penalties in relation to the same natural or legal person responsible for the same act or omission in the case of an accumulation of administrative and criminal proceedings related to the same breach.

• (5) Any such accumulation of proceedings and penalties, as allowed for in paragraph (4), shall be strictly necessary and proportionate to pursue different and complementary objectives of general interest.

• (6) The Bank shall have in place appropriate mechanisms ensuring that other competent authorities and judicial authorities are duly informed, in a timely manner, where administrative proceedings and criminal proceedings are initiated by the Bank against the same natural or legal person that may be held responsible for the same conduct in both proceedings.”.

Amendment of Regulation 60 of Principal Regulations

21.

• “(1A) The strategies and processes referred to in paragraph (1) shall take into account the coverage of ESG risks in the short, medium and long term.”.

Amendment of Regulation 61 of Principal Regulations

22.

• (a) in paragraph (1)(b), by the substitution of “exposed to, including ESG risks in the short, medium and long term;” for “exposed to;”, and

• (b) in paragraph (1)(c)(ii), by the substitution of “risk management, including by taking into account the institutions’ risk appetite in terms of ESG risks, and” for “risk management, and”.

Amendment of Regulation 64 of Principal Regulations

23.

• (a) by the substitution of the following paragraph for paragraph (1):

• “(1) Institutions shall ensure that their management bodies shall approve and review, at least every two years, the strategies and policies for taking up, managing, monitoring and mitigating the risks that the institution is or might be exposed to, including those posed by the macroeconomic environment in which it operates in relation to the status of the business cycle, and those resulting from the current and short-, medium- and long-term impacts of environmental, social and governance factors.”,

• (b) by the insertion of the following paragraph after paragraph (1):

• “(1A) Small and non-complex institutions, as defined in point (145) of Article 4(1) of the Capital Requirements Regulation, shall review the strategies and policies referred to in paragraph (1) every two years.”,

• (c) by the insertion of the following paragraphs after paragraph (4):

• “(4A) Institutions shall ensure that their management bodies develop and monitor the implementation of specific plans that include quantifiable targets and processes to monitor and address the financial risks arising in the short, medium and long term from ESG factors, including risks arising from the process of adjustment and from transition trends in the context of –

  • (a) the relevant Union and the State’s regulatory objectives and legal acts in relation to ESG factors, in particular the objective to achieve climate neutrality, and

  • (b) where relevant for internationally active institutions, third-country legal and regulatory objectives.

• (4B) The quantifiable targets and processes to address the ESG risks included in the plans referred to in paragraph (4A) shall consider the latest reports and measures prescribed by the European Scientific Advisory Board on Climate Change, in particular in relation to the achievement of the climate targets of the Union.

• (4C) Where institutions disclose information on ESG matters in accordance with Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013³⁸ , the plans referred to in paragraph (4A) shall be consistent with the plans referred to in Article 19a or 29a of that Directive and shall, in particular, include actions with regard to the business model and strategy of the institution that are consistent across both plans.

• (4D) The Bank shall ensure a proportionate application of paragraphs (4A), (4B) and (4C) for the management bodies of small and non-complex institutions, as defined in point (145) of Article 4(1) of the Capital Requirements Regulation, indicating in what areas a waiver or a simplified procedure may be applied.”,

• (d) in paragraph (15), by the substitution of “consideration risks, including those resulting from the impacts of ESG factors,” for “consideration risk,”,

• (e) in paragraph (16), by the substitution of “internal control functions” for “a risk management function”,

• (f) by the substitution of the following paragraph for paragraph (17):

• “(17) In accordance with the proportionality requirement laid down in Article 7(2) of Commission Directive 2006/73/EC of 10 August 2006³⁹ , institutions shall ensure that its internal control functions –

  • (a) are independent from its operational functions, and

  • (b) have sufficient authority, stature, resources and access to the management body.”,

• (g) by the substitution of the following paragraph for paragraph (18):

• “(18) Institutions shall ensure that –

  • (a) the internal control functions –

    • (i) properly identify, measure and report all material risks,

    • (ii) provide a comprehensive view of the whole range of risks that the institution is exposed to, and

    • (iii) have direct access and can report directly to the management body in its supervisory function,

  • (b) the risk management function –

    • (i) is actively involved in elaborating the institution’s risk strategy and in all its material risk management decisions, and

    • (ii) has control over the effective implementation of the risk strategy,

  • (c) the internal audit function performs an independent review of the effective implementation of the institution’s risk strategy, and

  • (d) the compliance function –

    • (i) assesses and mitigates compliance risk, and

    • (ii) ensures that the institution’s risk strategy takes into account compliance risk and that compliance risk is adequately taken into account in all material risk management decisions.”,

• (h) by the insertion of the following paragraph after paragraph (18):

• “(18A) Institutions shall ensure that its internal control functions are independent of the members of the management body in its management function and of senior management and shall, where appropriate, or where specific risks develop that affect or could affect the institution, be able to raise concerns and warn the management body in its supervisory function, without prejudice to the responsibilities of the management body pursuant to these Regulations and the Capital Requirements Regulation.”,

• (i) in paragraph (19) –

• (i) in subparagraph (a) by the substitution of “internal control function” for “risk management function”, and

• (ii) by the substitution of the following subparagraph for subparagraph (b):

• “(b) ensure that the persons appointed under subparagraph (a) are independent senior managers with distinct responsibility for the risk management, compliance and internal audit functions.”,

• (j) by the substitution of the following paragraph for paragraph (20):

• “(20) Where the nature, scale and complexity of the activities of an institution do not justify a specially appointed person for the risk management function or the compliance function, that institution may appoint another senior person that performs other tasks within the institution to fulfil the responsibilities for the compliance or risk management functions, provided there is no conflict of interest.”,

• (k) by the substitution of the following paragraph for paragraph (21):

• “(21) Having regard to paragraph (20), institutions shall ensure that the person responsible for the risk management function and the compliance function –

  • (a) fulfils the suitability criteria and requirements of knowledge, skills and experience necessary for the different areas concerned, and

  • (b) has sufficient time to perform both control functions correctly.”, and

• (l) by the insertion of the following paragraphs after paragraph (21):

• “(21A) The internal audit function shall not be combined with any other business line or control function of the institution.

• (21B) The heads of the internal control functions shall not be removed without the prior approval of the management body in its supervisory function.”.

Amendment of Regulation 65 of Principal Regulations

24.

• (a) by the substitution of the following paragraph for paragraph (4) –

• “(4) The Bank may require institutions to –

  • (a) develop an internal market risk assessment capacity,

  • (b) develop or increase their use of internal models for calculating own funds requirements for portfolios of trading book positions, and

  • (c) develop or increase their use of internal models to calculate own funds requirements for default risk,

  where their exposures to default risk are material in absolute terms and where they have a large number of material positions in traded debt or equity instruments of different issuers.”, and

• (b) in paragraph (6), by the substitution of “Chapter 1b” for “Chapter 5, Sections 1 to 5”.

Amendment of Regulation 66 of Principal Regulations

25.

• (a) by the substitution of the following paragraph for paragraph (1):

• “(1) The Bank shall ensure that:

  • (a) institutions permitted to use internal approaches for the calculation of risk-weighted exposure amounts or own funds requirements report the results of their calculations for their exposures or positions that are included in the benchmark portfolios;

  • (b) institutions using the alternative standardised approach set out in Part Three, Title IV, Chapter 1a, of the Capital Requirements Regulation report the results of their calculations for their exposures or positions that are included in the benchmark portfolios, provided that the size of the institutions’ on- and off-balance-sheet business that is subject to market risk is equal to or greater than €500 million in accordance with Article 325a(1), point (b), of that Regulation;

  • (c) institutions permitted to use internal approaches under Part Three, Title II, Chapter 3, of the Capital Requirements Regulation, as well as relevant institutions that apply the standardised approach under Part Three, Title II, Chapter 2, of that Regulation, report the results of the calculations of the approaches used for the purpose of determining the amount of expected credit losses for their exposures or positions that are included in the benchmark portfolios, where any of the following conditions is met:

    • (i) institutions prepare their accounts in conformity with international accounting standards as applied in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002⁴⁰ ;

    • (ii) institutions undertake the valuation of assets and off-balance-sheet items and the determination of their own funds in conformity with international accounting standards pursuant to Article 24(2) of the Capital Requirements Regulation;

    • (iii) institutions undertake the valuation of assets and off-balance-sheet items in conformity with accounting standards under Council Directive 86/635/EEC of 8 December 1986⁴¹ and use an expected credit loss model that is the same as the one used in international accounting standards as applied in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002⁴² .”,

• (b) in paragraph (2) –

• (i) by the substitution of “the approaches for the calculations” for “internal approaches for the calculations”, and

• (ii) by the substitution of “their approaches for their exposures” for “their internal approaches for their exposures”,

• (c) in paragraph (3), by the deletion of “at an appropriate frequency, as determined by the Bank, and”,

• (d) in paragraph (4), by the insertion of “and any qualitative information, as requested by the EBA, that can explain the impact of those calculation on own funds” after “to produce them”,

• (e) in paragraph (7) –

• (i) by the deletion of “except for operational risk,”, and

• (ii) by the substitution of “from the approaches” for “from the internal approaches”,

• (f) in paragraph (8) –

• (i) by the substitution of “with the same frequency as submissions made under paragraph (3)” for “at least annually”, and

• (ii) in subparagraph (b), by the substitution of “variability” for “diversity”, and

• (g) in paragraph (10), by the substitution of “the approaches referred to in paragraph (1)” for “an internal approach”.

Amendment of Regulation 67(1) of Principal Regulations

26.

• (a) in subparagraph (c), by the substitution of “is operated through effective systems,” for “is operated through effective systems, and”,

• (b) in subparagraph (d), by the substitution of “overall credit strategy of the institution concerned, and” for “overall credit strategy of the institution concerned.”, and

• (c) by the insertion of the following for subparagraph after subparagraph (d):

• “(e) they conduct an ex-ante assessment of any crypto-asset exposure that they intend to take on and of the adequacy of existing processes and procedures to manage counterparty risk, and report on those assessments to the Bank.”.

Amendment of Regulation 69 of Principal Regulations

27.

• (a) by the designation of that provision as paragraph (1), and

• (b) by the insertion of the following paragraph after paragraph (1):

• “(2) For crypto-assets without an identifiable issuer, the concentration risk referred to in paragraph (1) shall be considered in terms of exposure to the crypto-assets with similar features.”.

Amendment of Regulation 71 of Principal Regulations

28.

• “(8) The Bank shall ensure that institutions conduct an ex-ante assessment of any crypto-asset exposure that the institutions intend to take on and of the adequacy of existing processes and procedures to manage market risk, and report on those assessments to the Bank.”.

Amendment of Regulation 73 of Principal Regulations

29.

Environment, social and governance risk

30.