{
  "url": "https://openlegislation.uk/eu-regulation-2014-241/article-7a",
  "json_url": "https://openlegislation.uk/eu-regulation-2014-241/article-7a.json",
  "legislation": "eur/2014/241",
  "legislation_title": "Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2014-241",
  "path": "article/7a",
  "kind": "article",
  "number": "7a",
  "heading": "Multiple distributions constituting a disproportionate drag on own funds",
  "text": "1. Distributions on Common Equity Tier 1 instruments referred to in Article 28 of Regulation (EU) No 575/2013 shall be deemed not to constitute a disproportionate drag on capital where all of the following conditions are met:\n(a) the dividend multiple is a multiple of the distribution paid on the voting instruments and not a predetermined fixed amount;\n(b) the dividend multiple is set contractually or under the statutes of the institution;\n(c) the dividend multiple is not revisable;\n(d) the same dividend multiple applies to all instruments with a dividend multiple;\n(e) the amount of the distribution on one instrument with a dividend multiple does not represent more than 125 % of the amount of the distribution on one voting Common Equity Tier 1 instrument.\nIn formulaic form this shall be expressed as:\nl ≤ 1,25 × k\nwhere:\nk shall represent the amount of the distribution on one instrument without a dividend multiple;\nl shall represent the amount of the distribution on one instrument with a dividend multiple;\n(f) the total amount of the distributions paid on all Common Equity Tier 1 instruments during a one year period does not exceed 105 % of the amount that would have been paid if instruments with fewer or no voting rights received the same distributions as voting instruments.\nIn formulaic form this shall be expressed as:\nkX + lY ≤ 1,05 × k × X + Y\nwhere:\nk shall represent the amount of the distribution on one instrument without a dividend multiple;\nl shall represent the amount of the distribution on one instrument with a dividend multiple;\nX shall represent the number of voting instruments;\nY shall represent the number of non-voting instruments.\nThe formula shall be applied on a one-year basis.\n2. Where the condition of point (f) of paragraph 1 is not met, only the amount of the instruments with a dividend multiple that exceeds the threshold defined therein shall be deemed to cause a disproportionate drag on capital.\n3. Where any of the conditions of points (a) to (e) of paragraph 1 are not met, all outstanding instruments with a dividend multiple shall be deemed to cause a disproportionate drag on capital.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Inserted by Commission Delegated Regulation (EU) 2015/850 of 30 January 2015 amending Delegated Regulation (EU) No 241/2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (Text with EEA relevance)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2014/241/article/7a",
    "retrieved_at": "2026-11-01T14:47:53.805867+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}