A bank (Bank 1) has issued qualifying perpetual Tier 1 instruments prior to 2010 with a step-up of 100bps and subsequent quarterly (or annual) calls. Later, in 2011, the bank was taken over by another bank (Bank 2) and subsequently both companies merged. As of the merger date, the Tier 1 instrument has been transferred and is now a debt issued by bank 2, with a change in the legal format, from bearing shares to subordinated deposits, but with economically equivalent terms. Coupon clauses and call clauses were not substantially changed. In order to assess the capital treatment of the bond, one could consider that the initial bond is still outstanding : the bond had a step-up and the first call date after the step-up is in less than five years, so the bond should be entirely disqualified from regulatory own funds, consistent with previous EBA guidance. One could also consider that the merger, change of debtor and of legal format of the bond, despite no change in economic terms, is enough to consider that a new bond has been issued. In that case, if on the merger/change of debtor day, the initial coupon of the bond is lower than the prevailing swap rate on that day plus the initial credit margin plus 100bps, should it be considered that the bond has no step-up? Or to consider that there is no step-up should the coupon be lower than or equal to the prevailing swap rate on that merger/change of debtor day plus the initial credit margin?