Third country equivalence aspects of the credit risk provisions in the CRR, and recognised exchanges

Supervisory Statement 20/13

Update 28 April 2017

This supervisory statement was updated following publication of PS9/17 ‘Implementation of MiFID II: Part 2’, to update references in paragraph 2.26 from Markets in Financial Instruments Directive (MiFID) to MiFID II. The updates referring to MiFID II take effect from Wednesday 3 January 2018. See annex for details. 

PDF Supervisory Statement 20/13 - April 2017 

Update 23 January 2015

The part of SS20/13 dealing with third country equivalence aspects of the credit risk provisions in the Capital Requirements Regulation is no longer applicable with effect from 1 January 2015, and has been deleted. On 12 December 2014, the European Commission published a decision of binding effect as to which third countries apply supervisory and regulatory arrangements at least equivalent to those applied in the European Union. The decision came into effect on 1 January 2015 and is available on the Commission Implementing Acts webpage, and has effect in place of the relevant part of SS20/13.

PDF Supervisory Statement 20/13 - January 2015 

Published on 30 December 2013

This supervisory statement sets out the approach to be taken under the Capital Requirements Regulation (CRR) in relation to certain credit risk treatments of exposures to non-EEA (‘third country’) counterparties, and in relation to recognised exchanges.

Third country equivalence
 The CRR empowers the European Commission to make decisions on whether a non-EEA state’s prudential and supervisory requirements are equivalent to those of the EU in relation to a number of credit risk treatments. Pending those decisions by the Commission, the CRR allows national supervisors’ determinations of eligibility for these treatments to be used until the end of 2014. This supervisory statement sets out the approach the Prudential Regulation Authority (PRA) will take to third country equivalence during 2014 in the absence of an equivalence determination by the European Commission.
Recognised exchanges

The CRR requires the European Securities and Markets Authority (ESMA) to produce draft technical standards by 31 December 2014 specifying recognised exchanges for the purposes of the CRR. Until such time as the ESMA implementing technical standards specifying the list of recognised exchanges are adopted by the European Commission, this supervisory statement sets out the recognised exchanges that the PRA considers to qualify under the CRR.

PDF Supervisory Statement 20/13 

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