Article 28 Process Requirements Including Limits and Procedures for an Application by an Institution to Reduce Own Funds Pursuant to Article 77 of the CRR
1.
Redemptions, reductions and repurchases of own funds instruments shall not be announced to holders of the instruments before the institution has obtained the prior permission of the PRA.
- 01/01/2023
2.
Where the actions listed in Article 77(1) of the CRR are expected to take place with sufficient certainty, and once the prior permission of the PRA has been obtained, the institution shall deduct the corresponding amounts to be redeemed, reduced, repurchased, repaid or called or the amounts of the related share premium accounts to be reduced, distributed or reclassified, as applicable, from corresponding elements of its own funds before the effective redemptions, reductions, repurchases, distributions, repayments, reclassifications or calls occur. Sufficient certainty is deemed to exist in particular when the institution has publicly announced its intention to redeem, reduce, repurchase, repay, reclassify or call an own funds instrument.
- 01/01/2023
3.
[Note: Provision left blank]
- 01/01/2023
4.
When applying for a general prior permission for actions listed in Article 77(1) of the CRR, institutions shall inform the PRA where the related own funds instruments are purchased for the purposes of being passed on to employees of the institution as part of their remuneration and deduct these instruments from own funds on a corresponding deduction approach for the time they are held by the institution. A deduction on a corresponding basis is no longer required, where the expenses related to any action according to this paragraph are already included in own funds as a result of an interim or a year-end financial report.
[Note: This rule corresponds to Article 28(1) to (3) of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]
- 01/01/2023