recognision of own funds

Can the Common Equity Tier 1 items, namely „capital instruments, provided that the conditions laid down in Article 28 or, where applicable, Article 29 are met“(CRR Art 26 (1) (a)) and „other reserves“ (CRR Art 26 (1) (e)) be recognised as CET1 capital if there are features preventing its funds from use?

Newly established Institution’s funds for capital formation had been accumulated in a temporary accumulative account opened with a credit institution. From these funds Institution had formed its capital items: 1) share capital (item in Art 26(1) point (a)) which in accordance with the requirements of the legislation was registered in the Register of Legal Entities and 2) capital reserves (item in Art 26(1) point (e)). Right after the formation of capital instruments, the ownership of the funds kept in the credit institution’s account was temporarily restricted by order of the law enforcement institution. Nevertheless, shortly after the restriction came into force, the ownership of Institution had changed, so share capital instruments have been transferred to another shareholder. The period of restriction has now been in place for 4 years. Thus, the Institution cannot dispose of the funds withheld for a prolonged period; also, there remains a great uncertainty regarding the period of restriction and it is impossible to predict it’s outcome. According to national accounting standards, those funds in Institution’s balance sheet should be regarded as an asset.