1. European
  2. ESMA - European Securities and Markets Authority
  3. Questions and Answers
  4. 2022
Date-stamp loading
  1. Questions and Answers on MiFID II and MiFIR commodity derivatives topics (ESMA70-872942901-36) (updated 23 September 2022)
  2. 3 Ancillary activity [Last update: 23/09/2022]
  3. Question 10 Should the denominator in capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU? [Last update: 23/09/2022]
Previous Next
Version date: 23 September 2022 - onwards
  Version 3 of 3    

Question 10 Should the denominator in capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU? [Last update: 23/09/2022]

Art. 3(9) of RTS 20

Should the denominator in capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU?

Answer 10

The CDR 2021/1833 capital employed test should be calculated using consolidated accounts. According to Article 5(4) of CDR 2021/1833, the capital employed for carrying out the main business of a group shall be the sum of the total assets of the group minus its short-term debt as recorded in the consolidated financial statements of the group at the end of the relevant annual calculation period.

Firms shall use capital employed on a worldwide basis when calculating the capital test.

Comparing proposed amendment...
Previous Next