An insurance undertaking intends to issue subordinated notes, which are to be classified as Tier 2 basic own-fund item.
In accordance with article 73 (1)(g)(ii) of Commission Delegated Regulation (EU) 2015/35 of 10 October 2014, the terms of the contractual arrangement governing the basic own-fund item provide for the distributions in relation to that item to be deferred where there is non-compliance with the SCR or the distribution would lead to such non-compliance until the undertaking complies with the SCR and the distribution would not lead to non-compliance with the SCR.
Whereas in accordance with article 73 (1)(b) of the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014, the basic own-fund item does not include features which may cause the insolvency of the insurance or reinsurance undertaking or may accelerate the process of the undertaking becoming insolvent.
According to Guideline 7 paragraph 1.44 of EIOPA’s Guidelines on classification of own funds, the Guideline 5 paragraph 1.27 applies to tier 2 features mutatis mutandis. Is point (d) to be understood, that one of the features which may cause insolvency or accelerate the process of the undertaking  becoming insolvent is when the holder of the security relating to an own-fund item may, as a result of a distribution being deferred (instead of cancelled), be granted the ability to (…) demand penalties or any other compensation that could result in a decrease of own funds?
If so, should the fact that deferred distributions from an own funds item bear interest be considered as a feature accelerating the process of the undertaking becoming insolvent?