S.L. 330.9 Art. 44ASelling of subordinated eligible liabilities to retail clients.

(1) Where a seller of eligible liabilities meets all the conditions referred to in Article 72a of the CRR with the exception of point (b) of Article 72a(1) and paragraphs 3 to 5 of Article 72b of that Regulation, the sale of the eligible liabilities mentioned above to a retail client as defined in point (11) of Article 4(1) of

Directive 2014/65/EU, shall be permitted when the following conditions are fulfilled:

(a) the seller has performed a suitability test in accordance with Article 25(2) of Directive 2014/65/EU;

(b) the seller is satisfied, on the basis of the test referred to in point (a), that such eligible liabilities are suitable for such retail client;

(c) the seller documents the suitability in accordance with Article 25(6) of Directive 2014/65/EU: Provided that and notwithstanding the provision of any other law, the conditions set out in paragraphs (a) to (c) shall apply to sellers of Additional Tier 1 instruments and Tier 2 instruments when the said instruments are sold to a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU.

(2) Where the conditions laid down in sub-regulation (1) are fulfilled and the financial instrument portfolio of such retail client does not, at the time of the purchase, exceed five hundred thousand euro (€500,000), the seller shall, on the basis of the information provided by the retail client in accordance with sub-regulation (3), ensure that both of the following conditions are met at the time of the purchase:

(a) the retail client does not invest an aggregate amount exceeding 10% of that client’s financial instrument portfolio in liabilities referred to in sub-regulation (1); and

(b) that initial investment amount invested in one or more liabilities instruments referred to in sub-regulation (1) is at least ten thousand euro (€10,000).

(3) The retail client shall provide the seller with accurate information on the financial instrument portfolio of the retail client, including any investments in liabilities referred to in sub-regulation (1).

(4) For the purpose of sub-regulations (2) and (3), the financial instrument portfolio of the retail client shall, with the exception of any financial instruments that have been given as collateral, include cash deposits and financial instruments.

(5) The provisions of this regulation shall not apply to liabilities referred to in sub-regulation (1) issued before 28th December, 2020.

(6) Where the value of total assets of the institutions and entities referred to in paragraphs (b), (c) or (d) of the definition "entity" which are subject to the requirement referred to in regulation 45E does not exceed EUR 50 billion, the only applicable requirement shall be that set out in sub-regulation (2)(b).