Classification as a “specialised debt restructurer” pursuant to article 36 (5) of Regulation No 575/2013

For how long prior to an institution’s classification as a specialised debt restructurer must all the criteria specified in article 36 (5) of Regulation No 575/2013 be met by the institution?

Article 36 (5) of Regulation No 575/2013 states that to be classified as a “specialised debt restructurer” the institution must meet all the specified criteria “during the preceding financial year”.  This question is being posed to clarify what preceding financial year should mean in practice. It could lead to several different interpretations. For example: Assuming that the financial year matches the calendar year and that the institution comply with all criteria on 31 st December (but at no previous occasions during the same financial year) it can be classified as a “specialised debt restructurer” thereafter. The institution should have complied with all the criteria at all given times during the previous financial year. If the financial year matches the calendar year it would in practice mean at all relevant reporting dates from the 1 st of January to 31 st December of the given year. Further, an institution must comply with the criteria at all times during the current financial year up until the time of the notification.