§2.3 Restrictions on the equity investment

COMMUNICATION FROM THE COMMISSION Guidance concerning the treatment of equity exposures incurred under legislative programmes according to Article 133(5) of Regulation (EU) No 575/2013 · European Union

19. Article 133(5)(c) CRR states that legislative programmes must contain ‘restrictions on the equity investment, such as limitations on the size and types of businesses in which the institution is investing, on allowable amounts of ownership interests, on the geographical location and on other relevant factors that limit the potential risk of the investment for the investing institution’. 20. For example, legislative programmes can contain one or more of the following restrictions to comply with Article 133(5)(c) CRR: (1) absolute and relative caps to size of the investment; (2) focusing the investment on EU-based companies; (3) focusing the investment to undertakings meeting the definition of SME, small mid-cap, start-up or scale-up; (4) targeting a diversified portfolio of undertakings under the equity investment, in terms of the number of undertakings, geographic distribution and/or year of investment; (5) non-pari passu arrangements.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07