Reporting "type of connection" in column 040 of LE3 (C 29.00)

Where two or more entities constitute a single risk because of their interconnectedness (as described in point (b) of Article 4(1)(39) of Regulation (EU) No. 575/2013 (CRR)) but there is no relationship of control between all of these entities (as described in point (a) of Article 4(1)(39) of CRR), the type of connection constituting this group of connected clients is "interconnectedness". This requires to report "b" - as the type of connection between an individual entity and this group of connected clients - in column 040 of template C 29.00 (LE3), according to Point 7.1 of the Instructions in Annex VIII of Regulation (EU) No 680/2014 (ITS on Supervisory Reporting of institutions). This applies irrespective of whether an entity has a control relationship to some (but not all) other entities belonging to this group of connected clients. In contrast, where an entity belongs to two different groups of connected clients because not all the entities belonging to these groups constitute together a single risk according to point (a) or (b) of Article 4(1)(39), the type of connection needs to be identified and reported separately for each of these groups of connected clients. This answer is without prejudice to further guidance which may be provided in the context of the review of the Guidelines on the revised large exposures regime.