Hi, Clarification please, it sounds one of a) or b) below misplaces "Subordinated Debt" in defining Own Funds, though a) makes perfect sense to me: a) CMP chp 15, pg 26, mentions: "Own Funds refers to assets in excess of technical provisions and subordinated liabilities. These are split into basic and ancillary own funds,..." b)Article 88 of official SII Directive mentions: "Basic Own Funds shall consist of the following items: (1) The excess of assets over liabilities,.....; (2) Subordinated Liabilities. I am interpreting "liabilities" under b) (1) as Technical Provisions If (2) is subtracting from (1) then (a) and (b) are consistent, but the wording sounds as if (2) is added to (1). Maybe I am not getting the legal language.
The Core Reading wording in a) is ambiguous - sorry. Perhaps a comma after "technical provisions" might make it clearer. Your quote from Article 88 is correct. We'll have to add a note in to clarify this for next year.
