The Finnish Financial Supervision Authority gave on 16 January 2009 a revised opinion on the inclusion of hybrid instruments in Tier 1 capital of Finnish credit institutions, investment firms and fund management companies.
The maximum amount of hybrid instruments eligible for Tier 1 treatment was raised from the previous 15 per cent to 50 per cent of the Tier 1 capital of the issuer, subject, however, to further limitations where such instruments contain incentives for redemption or where their terms do not facilitate conversion into equity of the issuer, as provided by the ongoing revision of the EU Capital Adequacy Directives. For special reasons, for example, where the continued operations of a credit institution require governmental support, the Financial Supervision Authority may allow that the percentage thresholds will be exceeded.
For further information, please contact *#Ms. Tarja Wist#* or *#Mr. Lauri Peltola#*.