Completion of the incorporation and depreciation of hybrid core capital 1)

Purline of section 132 (2). 9, and Section 373 (3). 4, in the law of financial activities, cf. Law Order no. 1125 of 23. September 2010 shall be determined :

Scope and definitions

§ 1. This notice shall apply to :

1) Financial institutions.

2) Realtor credit institutions.

3) Fund Broker Companies.

4) Investment management companies.

Paragraph 2. The institutions and the companies referred to in paragraph 1. 1 shall be referred to in the following ' establishments '.

§ 2. For the purposes of this notice :

1) The initial interest rate of the issue shall be :

The interest rate basis, as agreed, that the issue should be enclosed by the date of issue. The duration of the maturity shall be used for the duration of the duration. The interest-rate basis may be either fixed or variable-interest.

2) Interest interest rate of interest rates :

The interest rate, as agreed, that the issue should be taken as a result of the interest rate increase. The duration of the maturity shall be used for the duration of the duration. The interest-rate basis may be either fixed or variable-interest.

3) Conversion rate :

The number of shares, guarantees or cooperatits which a hybrid nuclear capital can be converted to.

4) The conversion rate at issue time :

The number of shares, guarantees or cooperatits which the value of a unit hybrid core capital corresponds to at issue time.

Inferment of hybrid core capital on enterprise initiative

§ 3. The company can only implore hybrid core capital if it has sufficient capital after the ensuing and in an foreseeable time thermolation, so that the financial and solvency situation remains reassuring.

Paragraph 2. In the assessment, cf. paragraph 1, the company must involve the quantity and quality of basic capital necessary to cover the risks which the undertaking is or may be exposed to. In this context, the company must consider the liquidity and earnings of its liquidity.

§ 4. Hybrid core capital, which is due to be pre-established at a time, must be at the time of expiration if the undertaking ' s financial and solvency situation permits this.

§ 5. The undertaking must, as soon as the decision to deliver on the hybrid seed capital has been taken, the application of the Finance-SEC authorisation for inlet. This also applies to hybrid core capital, which is decreased at a predetermined time.

Paragraph 2. The undertaking shall, with the application for the authorization, attach the following material :

1) A complete explanation of why the company is seeking to enter into the hybrid core capital.

2) The level of solvent data, including the level and composition of the core capital before and after the period of entry and confirmation that the establishment will continue to comply with the regulatory requirements laid down in the legislation or in rules issued in accordance with that after the period of introduction. The liquidity situation and a confirmation that the undertaking will continue to comply with the regulatory and supervisory requirements after the intake.

3) Information about the expected development of the data given in paragraph 1. 2 for at least three years based on the company ' s business plan, including anticipated trends in the balance sheet and profit and loss account.

4) An assessment of the risks to be or may be exposed to the exposure and the level of basic capital ensures that these risks are covered, including a stress test of the most significant risks that show potential losses in different scenarios ; the company ' s latest solvency needs.

Paragraph 3. If the hybrid core capital is to be replaced by other hybrid seed capital, the SEC may require the company to make it possible for this to be possible. The company must also provide information on the impact of the damages on revenue, including the expected price and terms and conditions.

Paragraph 4. The financial supervision may require additional information if necessary for the examination of the application.

Paragraph 5. After agreement with the Financial supervision, the undertaking shall refrain from submitting a full set of information if the hybrid core capital has already been replaced by capital of the same or better quality.

§ 6. The financial supervision may require the establishment to replace the proposed hybrid core capital with capital of the same or better quality after the payment occurs within five years of payment, or when the replacement is necessary for the solvency and The financial situation remains comforting.

Incidents for Refreshing

§ 7. Incentives for the introduction are the conditions and conditions relating to the hybrid seed capital, which may provide an expectation that the sanctuation will take place. An agreed increase in interest rates, when there is an opportunity for recovery, is an example of an incentive for the intake. A conversion to shares, guarantee capital or equity capital at a time or at the request of the owner of the hybrid seed capital when there is a possibility of incorporation, is also an example of an incentive for the intake.

Paragraph 2. Conditions and conditions which may give an expectation that the sanctuation will take place is an incentive for recovery, regardless of the fact that they are not timelally coincided with the possibility of inexcution.

Paragraph 3. An obligation for the issuer or owner to convert the hybrid core capital to shares, guarantee capital or equity capital as a result of financial or solvency problems is not an incentive to intake.

Paragraph 4. An opportunity for incorporation does not constitute an incentive for inlet.

Paragraph 5. The advent of incentives for insertion is determined at the time of issue or by renegotiation of terms and conditions. Hybrid core capital, with an incentive to the intake, will not be transformed into hybrid core capital without incentive to intake, when the incentive has been lost as a result of the development or the loss due to renegotiation.

§ 8. A interest rate increase is a moderate incentive to intake, cf. § 132, paragraph 1 1, no. 5, in the case of financial activities, if it provides an increase in the original interest, which is not greater than the highest of :

1) 100 basic points deduced the swapbuckle ; and

2) 50%. of the original credit-span deduced swapbuckle.

Paragraph 2. Swapbuckle in paragraph 1. 1, no. 1, as determined at the time of issue, the difference between the interest rate and the original interest rate of the interest rate increase.

Paragraph 3. The credit span referred to in paragraph 1. 1, no. 2, shall be fixed at the time of issue as the difference between the original interest of the issuance and the original interest rate.

Paragraph 4. The hybrid seed capital agreement must not contain more than one interest rate increase in the life of the instrumentation.

§ 9. A conversion to shares, guarantee capital or equity capital at a time or at the request of the owner of the hybrid nuclear capital shall be a moderate incentive to intake if there is a limitation on the Agreement ; the conversion rate so that it cannot amount to more than 150%. by the conversion rate at the time of issue.

Decrewriting of hybrid core capital

§ 10. The agreement on hybrid seed capital shall be required under Section 132 (3). 1, no. 11, in the Act of Financial Company, may include an opportunity for the undertaking to dewrite the hybrid core capital. This possibility may be limited, cf. § 132, paragraph 1 4, in the law of financial activities. Additional restrictions may be imposed on the preciation of depreciation, with the limitations, however, not to prevent an early and careful depreciation that can ensure the continued viability of the company. Depreciation of the hybrid core capital as a result of section 132 (2). 1, no. However, in the case of financial operations, the basic capital of the company must be lower than the adequate base capital, in the case of the company ' s basic capital, and in the case of the reduction of the rate of capital after deduction, cf. Section 131 of the Act of Financial Business, is less than 5%.

Paragraph 2. Depreciation of hybrid core capital must be at least equal to the same percentage, as the share, guarantee, or the Andelchapters shall be reduced.

Paragraph 3. The depreciation of the hybrid kernel capital may be combined with an opportunity for subsequent rewriting. A subsequent write-up of the principal must not take place until further viability is guaranteed to the company's continued viability. The basic capital of the company must be higher than the adequate base capital, and the seed capital percentage after deduction higher than 5%. After the rewrite. The write-off can be matched by the previously specified depreciation.

Paragraph 4. Conditions and conditions under the hybrid nuclear capital agreement must not be imposed, which prolongs the time for the execution of the depreciation.

Paragraph 5. Interest payments shall not be made on any part of the hybrid seed capital, whereas this part is written down. These payments will be cancelled and permanently lapsed.

§ 11. The hybrid seed capital shall not be secured or covered by a warranty from the issuer or a related entity or have other arrangements as a legal or economic counterpart the depreciation.

§ 12. The concrete framework for the preciation, cf. Section 10 must be published in order to ensure adequate transparency in the market. This may, for example, be carried out in the context of the fulfilment of the information requirements of the undertaking in accordance with Annex 20 to the notice of capital coverage.

Penalty and entry into force

§ 13. The withdrawal of section 5 (2). 1, sections 11 and 12 are punished by fine.

Paragraph 2. Companies can be imposed on companies, etc. (legal persons) punishable by the rules of Chapter 5 of the penal code.

§ 14. The announcement shall enter into force on 1. November, 2010.

Paragraph 2. Publication no. 938 of 21. July 2010 on the sanctuation and the depreciation of hybrid core capital are hereby repealed.

1) The announcement contains provisions that implement parts of Directive 2009 /111/EC of the European Parliament and of the Council of 16. September 2009 amending Directives 2 0 0 6 /4 8 / EC, 2006 /49/EC and 2007 /64/EC with respect to banks connected to central bodies, certain components of own funds, large exposures, supervisory arrangements and crisis management (CRD II). I'm 111, s. 97%.