Exclusion of intragroup transactions from own funds requirements for CVA risk

On a consolidated level, intragroup transactions are not considered since netted between each other as clarified in Q&A 471 . On a solo basis however, in accordance with the definition of intragroup entities of Article 3(2) of EU regulation 648/2012 (EMIR), intragroup transactions (meaning transactions with other entities of a same parent institution) with entities established in a third country are exempted of CVA charge if the Commission has adopted an implementing act under Article 13(2) of EU regulation 648/2012 in respect of that third country. In the absence of such an implementing act, these transactions cannot be excluded from the CVA risk charge under Article 382(4)(b) of the CRR. Example 1: Consider a group G established in the EU and two entities A and B, included in the scope of consolidation of G, where A is established in the EU and B is established in a third country. A and B have no link with each other; they are sisters with only link with G.  Where own funds requirements for CVA risk are computed at the level of G: -       Transactions between A and B do not give rise to own funds requirements for CVA risk, as they are removed as part of the consolidation process. Where own funds requirements for CVA risk are computed at the level of A: -       Transactions between A and B: o    Do not give rise to own funds requirements for CVA risk if they qualify as intragroup transactions under Article 3 of EMIR and the Commission has adopted an implementing act under EMIR Article 13(2) in respect of the relevant third country  o    Are subject to own funds requirements for CVA risk in all other cases.   Example 2: Consider a group G established in a third country and two entities A and B, included in the scope of consolidation of G, where A and B are established in the EU and B is within the scope of consolidation of A.   Where own funds requirements for CVA risk are computed at the level of A: -       Transactions between G and A and transactions between G and B: o    Do not give rise to own funds requirements for CVA risk if they qualify as intragroup transactions under Article 3 of EMIR and the Commission has adopted an implementing act under EMIR Article 13(2) in respect of the relevant third country  o    Are subject to own funds requirements for CVA risk in all other cases   -       Transactions between A and B do not give rise to own funds requirements for CVA risk, as they are removed as part of the consolidation process, since B is within the scope of consolidation of A. Where own funds requirements for CVA risk are computed at the level of B: -       Transactions between B and A do not give rise to own funds requirements for CVA risk if they qualify as intragroup transactions under Article 3 of EMIR -       Transactions between B and G do not give rise to own funds requirements for CVA risk if they qualify as intragroup transactions under Article 3 of EMIR and the Commission has adopted an implementing act under EMIR Article 13(2) in respect of the relevant third country.