Regulatory AlertsRegulations Amending Prudential Requirements and Capital Buffers (FFFS 2015:3)
Finansinspektionen amends its prudential requirements regulations (FFFS 2014:12) to exempt covered bond issuers from the derivative counterparty concentration limits mandated by Article 129(1)(c) of the Capital Requirements Regulation. This exemption addresses potential Swedish market concentration risks by permitting issuers to utilize multiple derivative counterparties rather than being restricted to a few. The European Banking Authority has validated the measure, which officially takes effect on 31 March 2015.
Regulations amending Finansinspektionen’s regulations (FFFS 2014:12) regarding prudential requirements and capital buffers
In force from 2015-03-31
FFFS 2014:12
Summary
FI is introducing an exemption from the requirements set out in Article 129(1)(c) of the Capital Requirements Regulation by means of an amendment to Finansinspektionen's regulations (FFFS 2014:12) regarding prudential requirements and capital buffers.
FI is introducing the exemption to avoid the concentration problems on the Swedish market that could arise if issuers of covered bonds were referred to only a few derivative counterparties.
EBA has published an opinion on FI's decision and finds it to be justified. The regulatory amendment enters into force on 31 March 2015. Amendment 2015:3
Documents
FFFS 2015:3
Decision memorandum FFFS 2015:3