Capital instruments that were issued with an incentive to redeem but no longer contain one

The instruments considered are those that qualified as original own funds under national transposition measures for Article 57(ca) and Article 154(8) and (9) of Directive 2006/48/EC, and where the institution was able to exercise a call with an incentive to redeem only prior to or on 31 December 2011.  Tier 1 instruments  for which the institution was able to exercise a call with an incentive to redeem only prior to or on 31 December 2011, where no call was exercised and when the instrument is not eligible under Article 52 of Regulation (EU) No. 575/2013 (CRR) are grandfathered under Article 489(6). In accordance with Article 489(6) of the CRR, an instrument shall qualify as Additional Tier 1 in accordance with Article 484(4), subject to the limit laid down in Article 486(3). The amount of the instruments not included in additional Tier 1 can be grandfathered in Tier 2 under Article 490(6) of the CRR, having regard to Article 487. Following the conclusions stated in Q&A 2013_15 , an incentive to redeem will be deemed to continue to exist, regardless of the fact that the instrument was not called. Following the conclusions stated in Q&A 2013_48 , the frequency of subsequent calls is not a relevant criterion in that regard. On the basis of the aforementioned Q&As, an instrument may be included in fully eligible Tier 2 items only if all conditions of Article 63 of the CRR are met. Due to the existence of an incentive to redeem, the instrument would not meet the eligibility criteria for inclusion in fully eligible Tier 2 capital.