On 22 June 2009, the Committee of European Banking Supervisors (CEBS) published its consultation paper (CP 27) on its implementation guidelines on hybrid capital instruments.

The consultation paper responds to Article 63a (6) of the Capital Requirements Directive (CRD) that requires CEBS to "elaborate guidelines for the convergence of supervisory practices with regard to the instruments referred to in Article 63a (1) and in Article 57(a) and monitor their application". Furthermore, the draft guidelines presented in this consultation paper cover the topics of permanence, flexibility of payments, loss absorbency, limits and hybrid instruments issued through an SPV.

The consultation is open to all interested parties, including supervised institutions and other market participants and runs until 23 September 2009.