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Decision of 11 December 2006 amending the Decision on prudential rules for the implementation of Directive No 17 of the European Parliament and of the Council 2006 /48/EC of the European Parliament and of the Council of the European Union of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (PbEU L 177) and Directive No 4/4 of the European Parliament and of the Council 2006 /49/EC of the European Parliament and of the Council of the European Union of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) (PbEU L 177) (Decision implementing Capital Agreement Basel 2)
We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.
On the nomination of our Minister of Finance of 26 September 2006, No FM2006-02251 M;
Having regard to the Articles 3:17, second paragraph, introductory wording and part c , 3:53, third member , 3:57, 2nd and Seventh Member , 3:259, third member , 3:280b , 4:22 and 5:58, third member, of the Financial Supervision Act and the Directives No 2006 /48/EC of the European Parliament and of the Council of the European Union of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (PbEU L 177), and No 2006 /49/EC of the European Parliament and of the Council of the European Union of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast) (PbEU L 177);
The Council of State heard, opinion of 20 October 2006, No W06.060417/IV;
Having regard to the further report of our Minister of Finance dated 4 December 2006, No FM2006-02508 U;
Have found good and understand:
1 The minimum amount of regulatory capital of a bank or investment firm that calculates the amount of the risk-weighted assets and off-balance sheet items according to an internal model method shall be in the financial years 2007, 2008 and 2009. -at least 95, 90% or 80% of the minimum amount of regulatory capital calculated as a result of the Articles 60 to 62 of the Prudential Rules Decision as they were in prior to the date of entry into force of this Article.
2 The minimum amount of regulatory capital of a bank or investment firm that calculates the solvency requirement to cover the operational risk due to: Article 78 of the Prudential Rules Decision in the financial years 2008 and 2009, at least equal to 90% of the minimum amount of scrutiny calculated as a result of the maximum amount of 90 per cent of the minimum amount of scrutiny Articles 60 to 62 of the Prudential Rules Decision as they were in prior to the date of entry into force of this Article.
1 The minimum amount of regulatory capital of a bank or investment firm that calculates the amount of the risk-weighted assets and off-balance sheet items according to an internal model method shall be at least until the financial year 2011. equal to 80 per cent of the minimum amount of regulatory capital as calculated under the Articles 60 to 62 of the Prudential Rules Decision As they stood before 1 January 2007.
2 The minimum amount of regulatory capital of a bank or investment firm that calculates the solvency requirement to cover the operational risk due to: Article 78 of the Prudential Rules Decision until the financial year 2011, at least equal to 80% of the minimum amount of scrutiny calculated under the terms of the Articles 60 to 62 of the Prudential Rules Decision As they stood before 1 January 2007.
3 A bank or investment firm starting on or after 1 January 2010 using the calculation of the minimum amount of regulatory capital in accordance with the method of calculation referred to in the first or second paragraph shall cease to have effect until the end of the financial year 2011. Minimum amount of regulatory capital at least equal to 80% of the minimum amount of scrutiny calculated in accordance with the calculation method preceding the application of the first or second paragraph calculation method was used.
1 A bank, investment firm or clearing house may calculate the amount of the risk-weighted assets and off-balance sheet items until 1 January 2008, following: Article 61 of the Prudential Rules Decision as it was before the date of entry into force of this Article, on the understanding that credit derivatives are regarded as an off-balance sheet item with a full risk as referred to in paragraph 2 (b) of the second paragraph of Article 3 (2). Article mentioned.
2 At or under the Articles 3:18a and 3:74a of the Act Certain as well as the application or Article 24a and Section 10.3 of the Prudential Rules Decision It does not apply to a financial undertaking which applies the first paragraph.
3 A financial undertaking applying the first member may apply it to or under Section 10.4 of the Prudential Rules Decision to be excluded. If this financial undertaking does not disregard the said paragraph, it is assumed for its application. Article 61 of the Prudential Rules Decision to apply.
4 A financial undertaking applying the first paragraph shall reduce the amount of the solvency requirement to cover the operational risk referred to in Article 4 (2). Article 60, first paragraph, subparagraph (d) of the Prudential Rules Decision , with an amount equal to the quotient of the value of the assets and off-balance sheet items to which the first paragraph is applied and the value of all assets and off-balance sheet items, multiplied by the amount of that value. solvency requirement.
5 A financial firm applying the first member on all assets and off-balance sheet items may be at or under Chapter 10 of the Prudential Rules Decision certain, as used before the date of entry into force of this Decision, applied.
6 A financial undertaking which applies the first paragraph to all assets and off-balance sheet items may instead of applying to or under the balance sheet Chapter 9 , 10 and 13 of the Prudential Rules Decision the specific reason given by the Article 11, second paragraph , 20, third member , and 55, second paragraph, of the Credit Supervision Act 1992 or the Articles 1 to 8 of the Prudential Supervision Securities Regulation 2002 As it stood at 31 December 2006, applied.
1 The Nederlandsche Bank may, until 31 December 2009, be a financial undertaking referred to in Article 69, first paragraph, of the Prudential Rules Decision which a request as referred to in Article 69, fourth paragraph, of that Royal Decree submitted that, in the event of acceptance of that request, a shorter period should be allowed instead of the three-year period, on the understanding that this period shall not be less than one year.
2 De Nederlandsche Bank may, until 31 December 2008, at the request of a financial undertaking referred to in Article 69, first paragraph, of the Prudential Rules Decision That Article 69, fifth paragraph, of that Royal Decree apply, allow for a period of two years instead of the three-year period.
3 De Nederlandsche Bank may permit a financial undertaking to Article 94, first and second paragraph, of the Prudential Rules Decision as specified before the date of entry into force of this Article until 1 January 2013 shall continue to apply to participations as referred to in Article 1 (1) of this Article. Article 94, second paragraph, part d of the Decision on prudential rules which were acquired before 20 July 2006.
4 De Nederlandsche Bank may permit a financial undertaking as referred to in Article 70, third paragraph, of the Prudential Rules Decision with a seat in the Netherlands, by way of derogation from that member until 1 January 2018, instead of using an internal model method Articles 60 to 61a of the Prudential Rules Decision applies to positions in shares that it held on 31 December 2007.
5 To 1 January 2012, the Nederlandsche Bank may in the case of claims on enterprises instead of the 90-day period in the definition of default. Article 1 of the Prudential Rules Decision establish a longer period. The period shall not exceed 180 days or, in the case of claims on undertakings with a registered office in another Member State, no longer than the time limit fixed by the supervisory authority of that Member State.
1 For the purposes of this Article, the following definitions shall apply: Directive No 2004 /39/EC of the European Parliament and the Council of the European Union of 21 April 2004 on markets in financial instruments, amending the Directives 85 /611/EEC and 93 /6/EEC of the Council and of the Council Directive 2000 /12/EC of the European Parliament and of the Council and repealing Directive 93 /22/EEC of the Council (PbEU L 145).
2 To 1 January 2011, at the request of an investment firm, the Netherlands Bank may, on request, provide for a limit as referred to in Article 1 (2). Article 102, first or second paragraph, of the Prudential Rules Decision grant permission to Article 60, first paragraph, part b, of that royal decree Do not apply if:
(a) the investment firm provides investment services and investment activities as referred to in Article 4, first paragraph, point 2, of the Directive relating to the financial instruments referred to in Annex I, Section C, points 5, 6, 7, 9 and 10 of the Directive;
(b) the investment firm does not provide such investment services or investment activities for or on behalf of private clients as referred to in Article 4 (1), first paragraph, point 10 of the Directive;
c. Overwriting limits, referred to in the chapeau, related to risks arising from agreements which are financial instruments as referred to in subparagraph (a) and relating to raw materials or underlying values as referred to in Article 3 (2). Annex I, Section C (10) of the Directive, and are calculated in accordance with the application or Article 61, fifth paragraph, part c , and Annex B of the Prudential Rules Decision certain, or agreements relating to the supply of raw materials or allowances; and
d. The investment firm shall have a committed strategy for management.
3 The investment firm shall promptly inform the Nederlandsche Bank of the strategy referred to in paragraph 2 (d) and of any change to that strategy. The investment firm shall take measures to ensure continuous monitoring of the creditworthiness of the debtors, in accordance with the effect on concentration risk. Such measures shall enable the investment firm to take adequate action in the event of any deterioration in the creditworthiness.
4 If the investment firm exceeds internal borders established by the strategy referred to in paragraph 2 (d), it shall without delay inform the Nederlandsche Bank of the extent and nature of the overrun and the extent of the Party concerned.
5 The authorisation referred to in paragraph 2 shall cease to apply at the time of entry into force of a proposal as referred to in Article 119 of the revised Directive amending the provisions of Title V, Chapter 2, Section 5 of the Revised Directive. When that amendment enters into force before 31 December 2010, and that amendment does not condone with the consent, the banking directive is not authorised.
1 De Nederlandsche Bank may, on request, until 1 January 2012, authorise an investment firm to which Article 62a of the Prudential Rules Decision does not apply, does not comply with Article 60, first paragraph, part d, of that royal decree if:
a. The trading book does not at any time exceed € 50 million; and
(b) the average number of relevant employees for the financial year does not exceed one hundred.
2 The investment firm, referred to in paragraph 1, shall have the amount referred to in the first paragraph of this Article. Article 60, first paragraph, subparagraph (d) of the Prudential Rules Decision on an amount equal to or less than 12/88 of the higher of the following amounts:
a. the sum of the amounts specified in: Article 60, first paragraph, points (a) to (c) of the Prudential Rules Decision ;
b. the amount, intended to be Article 60, third paragraph, of the Prudential Rules Decision .
3 The investment firm shall raise at least annually the amount available to it so that it shall have the amount required by 31 December 2011 at the latest on the basis of Article 60, first paragraph, subparagraph (d) of the Prudential Rules Decision .
4 The application of the first to third paragraphs shall not result in a reduction in the minimum size of the regulatory capital applicable to the date of entry into force of the Agreement. Rft Prudential Rules Decision , unless such reduction is a result of a reduction in the amount of the regulatory capital that is subject to review.
1 For the purposes of this Article, the following definitions shall apply: Directive No 2004 /39/EC of the European Parliament and the Council of the European Union of 21 April 2004 on markets in financial instruments, amending the Directives 85 /611/EEC and 93 /6/EEC of the Council and of the Council Directive 2000 /12/EC of the European Parliament and of the Council and repealing Directive 93 /22/EEC of the Council (PbEU L 145).
2 Without prejudice to the third paragraph, until 1 January 2011 an investment firm shall not be required to comply with the provisions of the Chapter 9 and 10 of the Prudential Rules Decision if:
(a) its main activities consist exclusively of the provision of investment services or investment activities referred to in Article 4 (1) (2) of the Directive in relation to the financial instruments referred to in Article 4 (2) of the Directive. Directive, Annex I, Part C, points 5, 6, 7 and 10; and
(b) The Investment Services Directive did not apply to it on 31 December 2006.
3 The second paragraph shall cease to apply from the date of entry into force of a change as referred to in Article 65 (3) of the Directive if that amendment enters into force before 31 December 2010 and that amendment does not apply to the Carries with that member.
The articles of this Decision shall enter into force on a date to be determined by the Royal Decree, which may be determined differently for the various articles and parts of such articles.
This decision is cited as: Decision implementing Basel 2 Capital Agreement.
Charges and orders that this Decision will be placed with the relevant explanatory note in the Official Journal.
' s-Gravenhage, 11 December 2006
Beatrix
The Minister of Finance
,G. Zalm
Issued the 20th of December 2006Ministers of the European Parliament
E. M. H. Hirsch Ballin
