If there is a difference between the presentation of the text below and in the PDF document, the PDF document shall prevail.

No. 696/2024

11 June 2024

RULES

on financial undertakings' calculation of own funds and eligible liabilities.

Article 1. Scope.

These rules apply to financial undertakings that calculate own funds, or as applicable meet eligible liabilities, in accordance with the Act on Financial Undertakings, No. 161/2002.

Article 2. Calculation of own funds and eligible liabilities.

A financial undertaking required to calculate own funds, or as applicable eligible liabilities, on account of own funds requirements shall comply with the provisions of Commission Regulation (EU) No. 241/2014, as subsequently amended, cf. Article 3. When calculating own funds, Commission Regulation (EU) No. 523/2014, cf. Article 3, shall also be followed with respect to items that shall not be included in the calculation.

Article 3. Implementation of regulations.

With reference to Article 2, the following regulations apply in this country:

• Commission Delegated Regulation (EU) No. 241/2014 of 7 January 2014 supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for own funds requirements for institutions, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 80/2019 of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 59.

• Commission Delegated Regulation (EU) No. 523/2014 of 12 March 2014 supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for determining what constitutes the close correspondence between the value of an institution's covered bonds and the value of the institution's assets, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 81/2019 of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 65. The Regulation is published in the EEA Supplement to the Official Journal of the European Union No. 50 of 23 July 2020, pp. 289-290.

• Commission Delegated Regulation (EU) 2015/488 of 4 September 2014 amending Delegated Regulation (EU) No. 241/2014 as regards own funds requirements for firms based on fixed overheads, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 80/2019 of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 59. The Regulation is published in the EEA Supplement to the Official Journal of the European Union No. 50 of 23 July 2020, pp. 250-253.

• Commission Delegated Regulation (EU) 2015/850 of 30 January 2015 amending Delegated Regulation (EU) No. 241/2014 supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for own funds requirements for institutions, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 80/2019 of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 59. The Regulation is published in the EEA Supplement to the Official Journal of the European Union No. 50 of 23 July 2020, pp. 257-263.

• Commission Delegated Regulation (EU) 2015/923 of 11 March 2015 amending Delegated Regulation (EU) No. 241/2014 supplementing Regulation (EU) No. 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for own funds requirements for institutions, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 80/2019 of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 59. The Regulation is published in the EEA Supplement to the Official Journal of the European Union No. 50 of 23 July 2020, pp. 264-272.

• Commission Delegated Regulation (EU) 2020/2176 of 12 November 2020 amending Delegated Regulation (EU) No. 241/2014 as regards the deduction of software assets from Common Equity Tier 1 items, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 302/2021 of 29 October 2021.

• Commission Delegated Regulation (EU) 2023/827 of 11 October 2022 amending Delegated Regulation (EU) No. 241/2014 as regards approval for the reduction of own funds and requirements relating to instruments for eligible liabilities, which was incorporated into the EEA Agreement by Decision of the EEA Joint Committee No. 241/2023 of 22 September 2023.

With reference to the authorisation in the transitional provision III of Act No. 161/2002 on Financial Undertakings, cf. Act No. 57/2015, the Central Bank of Iceland refers to the publication of the English version of Commission Regulations (EU) No. 241/2014, 2020/2176 and 2023/827 in the Official Journal of the European Union:

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32014R0241, published in OJ Series L, Subseries R, No. 74, on 14 March 2014, pp. 8-26;

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32020R2176, published in OJ Series L, Subseries R, No. 433, on 22 December 2020, pp. 27-29;

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32023R0827, published in OJ series L, subseries R, no. 104, on 19 April 2023, pp. 1-22.

Article 4. Entry into force.

These rules, which are issued pursuant to the authority in items 4-11, 13-22, 83 and 84 of the second paragraph of Article 117 b of the Act on Financial Undertakings, no. 161/2002, enter into force immediately. Upon their entry into force, the rules no. 1162/2022 on financial undertakings' calculation of own funds and eligible capital shall be repealed.

Central Bank of Iceland, 11 June 2024.

	Ásgeir Jónsson Governor of the Central Bank.	Rannveig Júníusdóttir Managing Director.

Part B - Publication: 12 June 2024