A supervisory authority in a third country has the power to determine additional limitations regarding profit distributions by banks apart from the legal limitations established in the legislations .This authority, based on its local supervisory regulation, has indicated(stated) in its letter to supervised entity a Common Equity Tier 1 reference level above legislative requirements that implies minimum ratio required regarding profit distribution. When the supervised bank breaches this Common Equity Tier I level the authority can impose  limitations regarding profit distributions in cash. The following cash distributions can  be limited once the reference level is breached: 

-cash dividend payments to shareholders and buy backs

-payments related to AT1 instruments

-discretionary payments to employees

-other payments and transactions to be determined by supervisory authority
 

According to Article 84 CRR, Institutions shall determine the amount of minority interests of a subsidiary that is included in consolidated Common Equity Tier 1 capital by subtracting from the minority interests of that undertaking the result of multiplying the amount referred to in point (a) by the percentage referred to in point (b):

(a)    the Common Equity Tier 1 capital of the subsidiary minus the lower of the following:

(i)    the amount of Common Equity Tier 1 capital of that subsidiary required to meet the sum of the requirement laid down in point (a) of Article 92(1), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU the combined buffer requirement defined in point (6) of Article 128 of Directive 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital;

(ii)    the amount of consolidated Common Equity Tier 1 capital that relates to that subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in point (a) of Article 92(1), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in point (6) of Article 128 of Directive 2013/36/EU, the requirements referred to in Article 500 and any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital.

In this regard, confirmation is needed in order to know if this more stringent level determined by the local authority and communicated to the supervised entity is to be considered “any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital” for the purposes of the minority interest calculation  foreseen in Articles 84 1 a i) and ii) CRR.