Article 4 Type of Undertaking Recognised Under the Applicable Law of the United Kingdom (or any part of it) as a Co-operative Society for the Purposes of Article 27(1)(a)(ii) of the CRR
1.
An undertaking recognised under the applicable law of the United Kingdom (or any part of it) qualifies as a co-operative society for the purpose of Part Two of the CRR and this Part, where all of the conditions in paragraphs 2, 3 and 4 are met.
- 01/01/2023
2.
To qualify as a co-operative society for the purposes of paragraph 1, an institution must be a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 or a society registered or treated as registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969.
- 01/01/2023
3.
With respect to Common Equity Tier 1 capital, to qualify as a co-operative society for the purposes of paragraph 1, the institution shall be able to issue, under the applicable law of the United Kingdom (or any part of it) or the society’s statutes, at the level of the legal entity, only capital instruments referred to in Article 29 of the CRR.
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4.
To qualify as a co-operative society for the purposes of paragraph 1, when under the applicable law of the United Kingdom (or any part of it), the holders of the Common Equity Tier 1 instruments referred to in paragraph 3 which may be members or non-members of the institution, have the ability to resign, they may also have the right to put the capital instrument back to the institution, but only subject to the restrictions of the applicable law of the United Kingdom (or any part of it), the statutes of the institution, the CRR and of this Part. This does not prevent the institution from issuing, under the applicable law of the United Kingdom (or any part of it), or of a third country, Common Equity Tier 1 instruments complying with Article 29 of the CRR to members and non-members that do not grant a right to put the capital instrument back to the institution.
[Note: This rule corresponds to Article 4 of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]
- 01/01/2023