Royal Decree of 26 December 2013 approving the National Bank of Belgium Regulation of 23 December 2013 amending the Regulation of 15 November 2011 on the own funds of credit institutions and investment firms

FEDERAL PUBLIC SERVICE FINANCES
[C − 2014/03001]
26 DECEMBER 2013. — Royal Decree approving the regulation of 23 December 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms

PHILIP, King of the Belgians,
To all, present and to come, Greetings.

Having regard to the Act of 22 March 1993 on the status and supervision of credit institutions, Articles 43 and 80; Having regard to the Act of 22 February 1998 establishing the organic statute of the National Bank of Belgium,

We have decided and decide:

Article 1. The regulation of 23 December 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms, attached to this Decree, is approved.

Art. 2. This Decree enters into force on 31 December 2013.

Art. 3. The Minister responsible for Finance is charged with the execution of this Decree.

Given at Ciergnon, 26 December 2013.

PHILIP
By the King:
The Minister of Finance,
K. GEENS

Appendix to the Royal Decree approving the regulation of
23 December 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms

Regulation of 23 December 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms

THE NATIONAL BANK OF BELGIUM,

Having regard to the Act of 22 March 1993 on the status and supervision of credit institutions, Articles 43 and 80; Having regard to the Act of 22 February 1998 establishing the organic statute of the National Bank of Belgium,

Decides:

Article 1. The following amendments are made to the Regulation of the National Bank of Belgium of 15 November 2011 concerning the Regulation on the own funds of credit institutions and investment firms

§ 1. In Article III.1, § 1, 3°, first paragraph, the following point is added:

"the requirement for excessive trading activity as referred to in Article III.14; this requirement is applicable only to credit institutions."

§ 2. The following Articles III.14 and III.15 are added:

"Art. III.14:
the requirement for excessive trading activity as referred to in Article III.1, § 1, 3°, first paragraph is equal to the highest of the following two amounts:
1° (Trading assets - 15% of total assets)
2° (Sum of own funds requirements for trading activity - 10% of the sum of requirements) * 3.
Only positive amounts resulting from points 1° and 2° are taken into account.
The institution may calculate these amounts based on the average of the situation as closed at the end of the month and the two preceding months, provided it uses this methodology consistently over time. The institution informs the NBB of the method it uses.

Article III.15:
§ 1. For the purposes of Article III.14, first paragraph, 1°, the following definitions apply:
When international accounting standards, approved in accordance with European Regulation 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards, are used by the institution to verify compliance with solvency standards, trading assets are determined as follows:
Trading assets = (net trading assets + 80% of derivatives held for trading purposes) where c net trading assets = (assets held for trading purposes - derivatives held for trading purposes on the asset side) + (short positions in the trading portfolio in securities and negotiable instruments); c derivatives held for trading purposes = (derivatives held for trading purposes on the asset side + derivatives held for trading purposes on the liability side)/2. The above components are recorded at their book value on the asset and liability sides.

1) When the accounting standards, as laid down by the Royal Decree of 23 September 1992 on the annual accounts of credit institutions, are used by the institution to verify compliance with solvency standards, net trading assets are determined as follows:
Trading assets = (net trading assets + 80% of derivatives held for trading purposes) where c net trading assets = (assets held under the trading portfolio as defined in Article 35ter of that Decree + short positions in the trading portfolio in securities and other negotiable instruments); c derivatives held for trading purposes = (options and forward transactions as referred to in Articles 35quater, 36 and 36bis, recorded on the asset side which cannot be considered as hedging + options and forward transactions as referred to in Articles 35quater, 36 and 36bis, recorded on the liability side and which cannot be considered as hedging)/2.

2) The total of assets corresponds to the total of assets resulting from the accounting statements.

§ 2. For the purposes of Article III.14, first paragraph, 2°, the following definitions apply:

1) The sum of own funds requirements for a trading activity corresponds to the sum of the following requirements of this regulation:
c the requirement for interest rate risk resulting from the trading portfolio as referred to in Title IX, Chapter 2; c the requirement for equity position risk resulting from the trading portfolio as referred to in Title IX Chapter 3; c the requirement for specific risk of credit derivative-covered positions in the trading portfolio and positions in UCITS included in the trading portfolio as referred to in Title IX Chapter 4; c the requirement regarding firm commitments and guarantees of good performance as referred to in Title IX, Chapter 5; c the requirement for commodity risk as referred to in Title IX, Chapter 7.

2) The sum of requirements corresponds to the sum of requirements as referred to in:
c Article II.2, §§ 1 and 2 (participations not deducted from own funds); c Article III.5 (exceeding the standards for limiting risk concentration); c Title IV (credit and dilution risk of positions outside the trading portfolio); c Title VIII (operational risk); c Title IX (settlement and counterparty risk, market risks)."

§ 3. The NBB may grant ad-hoc permission for a credit institution to exclude derivatives or government securities of a Member State of the European Union for the purposes of the calculations referred to in paragraph 1, if the institution can demonstrate:
c that these are used to hedge its transactions outside the trading portfolio, where applicable carried out within its subsidiaries. To assess the qualification of a hedging transaction, the NBB takes into account the implementing measures of the Royal Decree of 23 September 1992 on the annual accounts of credit institutions. c that these are linked to and necessary for its activities as a market maker in government securities of a Member State of the European Union."

Art. 2. This Decree enters into force on 31 December 2013.

The Governor,
L. COENE

Seen to be attached to our Decree approving the regulation of 23 December 2013 of the National Bank of Belgium amending the regulation of 15 November 2011 of the National Bank of Belgium on the own funds of credit institutions and investment firms.

PHILIP
By the King:
The Minister of Finance,
K. GEENS

FEDERAL PUBLIC SERVICE INTERNAL AFFAIRS
[C − 2013/00837]
12 JULY 2012. — Royal Decree amending the Royal Decree of 7 July 1994 establishing the basic standards for the prevention of fire and explosion to which new buildings must comply. — Correction

In the Belgian State Gazette No. 297 of 21 September 2012, the following opinion of the Council of State must be added to the Report to the King accompanying the Royal Decree of 12 July 2012 amending the Royal Decree of 7 July 1994 establishing the basic standards for the prevention of fire and explosion to which new buildings must comply.

COUNCIL OF STATE
Opinion 50.548/4 of 28 November 2011 of the Legislation Section of the Council of State

The Council of State, Legislation Section, Fourth Chamber, requested by the Minister of the Interior on 4 November 2011 to give its opinion, within a period of thirty days, on a draft Royal Decree "amending the Royal Decree of 7 July 1994 establishing the basic standards for the prevention of fire and explosion to which new buildings must comply", has given the following opinion:

Since the request for opinion was submitted on the basis of Article 84, § 1, first paragraph, 1°, of the coordinated laws on the Council of State, as replaced by the Act of 2 April 2003, the Legislation Section, in accordance with Article 84, § 3, of the aforementioned coordinated laws, limits its examination to the legal basis of the draft, the competence of the author of the act and the prior formalities to be fulfilled.