There is some interpretation ambiguity regarding the requirements provided for in Article 113(6) CRR. According to Article 113(6) CRR, with the exception of exposures giving rise to Common Equity Tier 1, Additional Tier 1 or Tier 2 items, an institution may, subject to the prior approval of the competent authority and under specific conditions, decide not to apply the requirements of paragraph 1 of Article 113 to the exposures of that institution to a counterparty which is its parent undertaking, its subsidiary, a subsidiary of its parent undertaking or an undertaking linked by a relationship within the meaning of Article 12(1) of Directive 83/349/EEC. As a result, a 0% risk weight may be assigned to such exposures.

There appeared interpretation that the exposures giving rise to CET1, AT1 or T2 items relate to the capital items of the institution itself. However, exposures of an institution are not part of its capital and the condition should thus be considered in relation to the items of capital of the entity towards which the investing institution has the equity exposure.

Further, it is not fully clear whether only the capital instruments issued by an institution within the group of the investing institution should be disqualified from the possibility to receive the 0% RW pursuant to Article 113(6) CRR, or whether also the equity investments into financial institutions and ancillary services undertakings within the group are not eligible for the waiver.