{
  "url": "https://openlegislation.uk/eu-regulation-2014-342/article-16",
  "json_url": "https://openlegislation.uk/eu-regulation-2014-342/article-16.json",
  "legislation": "eur/2014/342",
  "legislation_title": "Commission Delegated Regulation (EU) No 342/2014 of 21 January 2014 supplementing Directive 2002/87/EC of the European Parliament and of the Council and Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the application of the calculation methods of capital adequacy requirements for financial conglomerates (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2014-342",
  "path": "article/16",
  "kind": "article",
  "number": "16",
  "heading": "Specification of circumstances for the use of Method 3 pursuant to Directive 2002/87/EC",
  "text": "1. Competent authorities may only allow the application of method 3 as referred to in Annex I to Directive 2002/87/EC in either of the following circumstances:\n(a) it is not reasonably feasible to apply either method 1 as referred to in Annex I to Directive 2002/87/EC to all entities or method 2 as referred to in Annex I to Directive 2002/87/EC to all entities within a financial conglomerate, in particular because method 1 cannot be used for one or more entities because they are outside the scope of consolidation, or because a regulated entity is established in a third country and it is not possible to obtain sufficient information to apply one of the methods to that entity;\n(b) the entities which would apply one of the methods are collectively of negligible interest with respect to the objectives of supervision of regulated entities in a financial conglomerate.\n2. Either method 1 or method 2 shall be used by all regulated entities in a financial conglomerate which are not referred to in paragraph 1.\n3. The application of method 3 allowed by a competent authority in relation to a financial conglomerate shall be consistent over time.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2014/342/article/16",
    "retrieved_at": "2026-11-01T14:47:47.752346+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."
}