Under the Annex II of Commission Implementing Regulation (EU) 2022/2454 Indirect transactions to be reported are defined as “any transaction shifting risk exposures either (i) between entities within the financial conglomerate (including transactions with special purpose vehicles, collective investment undertakings, ancillary entities or unregulated entities) or (ii) between entities outside the financial conglomerate (but where ultimately the risk exposure is brought back or stays within the financial conglomerate).”. The point (ii) referring to transactions “between entities outside the financial conglomerate (but where ultimately the risk exposure is brought back or stays within the financial conglomerate)” is not very clear on items expected to be covered.

The main purposes of intra-group transactions monitoring required under Directive 2002/87/EC is to prevent and monitor the contagion risks between sectors and regulatory arbitrage. The definition of intragroup transactions provided under article 2(18) of Directive 2002/87/EC as clarified by article (2)(1) of Commission Delegated Regulation (EU) 2015/2303 therefore aims to capture broadly any situation were an entity of the financial conglomerate transfers risks to another entity of the financial conglomerate, either directly or indirectly, regardless of whether the risk is partially or temporarily transferred and whether the risk is transferred at the time of closing or after.
In light of those definitions and principles and in what concerns securitisation vehicles, in the case for instance where an entity of the group acts as an investor in a securitization or has an exposure to a securitization vehicle in which another entity of the group has transferred exposures or risks, such securitisation position or exposure held by the entity shall be considered an intragroup transaction, regardless of whether the securitization vehicle is comprised in the accounting or prudential situation of another entity of the group.
For the purpose of the intragroup transaction reporting and on the basis of points (f) and (h) of article (2)(1) of Commission Delegated Regulation (EU) 2015/2303, sections 2.1, 3.1, 4.1, 5.1 and 6.1 of Annex II of Commission Implementing Regulation (EU) 2022/2454 clarify that “Indirect transactions shall be defined as any transaction shifting risk exposures either (i) between entities within the financial conglomerate (including transactions with special purpose vehicles, collective investment undertakings, ancillary entities or unregulated entities) or (ii) between entities outside the financial conglomerate (but where ultimately the risk exposure is brought back or stays within the financial conglomerate)”.
Under those provisions, an indirect transaction shall be understood as a chain of transactions which occurs between two entities comprised in the scope of supplementary supervision pursuant to article 5 of Directive 2002/87/EC through one or several intermediate entities that can be either part of the financial conglomerate (point (i)) or not (point (ii)).