Synthetic holdings

1) The draft regulatory technical standards Commission Delegated Regulation (EU) No 241/2014 (RTS on Own Funds ) that the EBA is mandated to prepare in accordance with Article 36(2) of Regulation (EU) No 575/2013 (CRR) will specif ies y in Articles 15a to 15f the application of the deductions of direct, indirect or synthetic holdings as set out in Article 36(1)(f) of the CRR . Where criteria of the final adopted of the RTS on Own Funds are met and the operation qualifies as an indirect or synthetic holding, the value of the pledged own regulatory capital instruments will have to be deducted under Article 36(1)(f) of the  CRR. The value of the capital instruments that will have to be deducted in that case is the accounting value of the instruments that are counted towards regulatory own funds. 2) Notwithstanding the fact that the value of the shares put in pledge will be deducted, they can still be considered as paid up to the extent that the corresponding amount has not been reimbursed, and provided the acquisition of ownership of the instruments is are not considered as directly or indirectly funded in accordance with Article 28(1)(b) of the CRR as further   specified in Articles 8 and 9 of the final RTS on Own Funds  the EBA is mandated to produce under Article 28(5)(a) of CRR regarding the applicable forms and nature of indirect funding. Subject to these conditions, the paid-up criterion in Article 28(1)(b) of the CRR would still be met. (See also Q&A 008 )