Title I, Article 6, Paragraph 3. · Commission Delegated Regulation (EU) 2017/390

Contents

3.For the calculation of a CSD's annual gross operational expenses, the following shall apply:

(a)the CSD's annual gross operational expenses shall consist of at least the following:

(i)total personnel expenses including wages, salaries, bonuses and social costs;

(ii)total general administrative expenses, and, in particular, marketing and representation expenses;

(iii)insurance expenses;

(iv)other employees' expenses and travelling;

(v)real estate expenses;

(vi)IT support expenses;

(vii)telecommunications expenses;

(viii)postage and data transfer expenses;

(ix)external consultancy expenses;

(x)tangible and intangible assets' depreciation and amortisation;

(xi)impairment and disposal of fixed assets;

(b)the CSD's annual gross operational expenses shall be determined in accordance with one of the following:

(i)International Financial Reporting Standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 of the European Parliament and of the Council^note;

(ii)Council Directives 78/660/EEC^note, 83/349/EEC^note and 86/635/EEC;

(iii)generally accepted accounting principles of a third country determined to be equivalent to IFRS in accordance with Commission Regulation (EC) No 1569/2007^note or accounting standards of a third country the use of which is permitted in accordance with Article 4 of that Regulation;

(c)the CSD may deduct tangible and intangible assets' depreciation and amortisation from annual gross operational expenses;

(d)the CSD shall use the most recent audited information from their annual financial statement;

(e)where the CSD has not completed business for one year from the date it starts its operations, it shall apply the gross operational expenses projected in its business plan.