Circular CBFA_2010_19 on Periodic Information to be Communicated by Institutions Regarding Compliance with Own Funds Requirements

rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Circular CBFA_2010_19 of August 31, 2010 Circular on Periodic Information to be Communicated by Institutions Regarding Compliance with Own Funds Requirements

Scope of Application:
Credit institutions, including non-EEA branches, investment firms, financial companies, resolution bodies, and entities assimilated to resolution bodies.

Summary/Objectives:
This circular transposes into the periodic information to be communicated by institutions regarding compliance with own funds requirements (Scheme A, Book III) the modifications made to the own funds regulation according to the CBFA Order of July 27, 2010.

Madam,
Sir,

We hereby inform you that the Banking, Finance and Insurance Commission (CBFA) has modified the periodic information concerning compliance with own funds requirements (Scheme A, Book III). The adaptations made to the periodic information reflect the CBFA Order of October 17, 2006 concerning the regulation on the own funds of credit institutions and investment firms, as amended by the CBFA Order of July 27, 2010 1. These are the modifications agreed upon within the Committee of European Banking Supervisors (CEBS). The adaptations primarily concern:

• 90.01 - Capital adequacy: provision of additional lines for different types of hybrid capital instruments;
• 90.06 and 90.07 - Standardized and Internal Models approach securitizations: additional information on securitizations purchased from counterparties not subject to the CRD and on the additional requirements imposed by Directive 2009/111/EC;
• 90.08 - Detailed information on securitizations: additional information on the type of retention method and the percentage applied;
• 90.17 - Detailed information on gross operational risk losses: addition of a new activity line;
• 90.18 - Concentration risk: instructions have been adapted to the new provisions of the own funds regulation.

1 This order may only be disseminated once the competent minister has approved and published it in the Belgian Official Journal.

CBFA_2010_19 of August 31, 2010 2 / 2
CBFA rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be

To this end, for credit institutions, the Annex Scheme A, Book III, of the Order of December 28, 2009 is repealed and replaced by the CBFA Order of August 30, 2010.

For financial companies, the CBFA Orders of January 29, 2007, May 8, 2009, and July 13, 2010 are repealed and replaced by the Coordination Order of August 30, 2010.

For investment firms, resolution bodies, and entities assimilated to resolution bodies, the Order of January 29, 2007 is amended by the CBFA Order of August 30, 2010.

You will find all these orders in the annex.

In accordance with the entry into force of the new own funds regulation, institutions will be required, starting from December 31, 2010, to transmit their own funds requirements based on the new reporting requirements to the National Bank of Belgium and the Banking, Finance and Insurance Commission.

The modifications to the XBRL taxonomy will be published on the CBFA website as soon as possible, and no later than the end of September 2010.

The CBFA Orders regarding periodic information to be communicated, the adapted tables and their comments, the validation rules, and the taxonomy can be consulted on the CBFA website (www.cbfa.be - "Credit Institutions" (or, as applicable, "Investment Firms", or "Resolution and Clearing"), under the section Circulars / Periodic Information).

A copy of this letter is sent to the auditor(s), approved auditor(s) of your institution.

Please accept, Madam, Sir, the expression of our distinguished salutations.

The President,
Jean-Paul SERVAIS

Annexes: - CBFA_2010_19-1 / Order for credit institutions;

• CBFA_2010_19-2 / Order for financial companies;
• CBFA_2010_19-3 / Order for investment firms, resolution bodies, and entities assimilated to resolution bodies.