(1) Basic own-fund items shall be classified in Tier 1 where they substantially possess the characteristics set out in Regulation 107(2)(a) and (b), taking into consideration the features set out in Regulation 107(3) and (4).
(2) Basic own-fund items shall be classified in Tier 2 where they substantially possess the characteristic set out in Regulation 107(2)(b), taking into consideration the features set out in Regulation 107(3) and (4).
(3) Ancillary own-fund items shall be classified in Tier 2 where they substantially possess the characteristics set out in Regulation 107(2)(a) and (b), taking into consideration the features set out in Regulation 107(3) and (4).
(4) Any basic and ancillary own-fund items which do not fall within paragraphs (1) to (3) shall be classified in Tier 3.