The Committee of European Banking Supervisors (CEBS) has published draft implementation guidelines on Article 106(2)(c) and (d) of the revised Capital Requirements Directive (revised CRD).
The revisions to the CRD relating to the large exposures' regime - limits and applicable exemptions - necessitated targeted provisions to exempt short-term exposures related to money transmission or financial instruments clearing, settlement and custody services to clients in order to facilitate the smooth functioning of financial markets and the related infrastructure.
Providing guidance on the scope and the eligibility conditions of the exemption provisions in Article 106(2)(c) and (d) of the revised CRD is seen as important for safeguarding a level playing field for all institutions providing money transmission or financial instruments clearing, settlement and custody services to clients, including single-purpose institutions such as (International) Central Securities Depositaries ((I)CSDs) and Central Counterparties (CCPs) that are regulated as credit institutions according to national law (thus falling under the large exposures regime).
The consultation is in response to Article 106(2) of the revised CRD that requires CEBS to elaborate guidelines for the convergence of supervisory practices in applying the exemptions in points (c) and (d) of that Article.
The deadline for comments on the draft implementation guidelines is 6 May 2010.