S.L. 370.46 Art. 7Establishment of the colleges of supervisors by the consolidating supervisor. 

(1) Where the competent authority is the consolidating supervisor, it shall establish colleges of supervisors to facilitate the exercise of the tasks referred to in regulation 4, regulation

5(1) and (2) and regulation 8, and it shall also, subject to the confidentiality requirements of sub-regulation (3) and compatibility with European Union law, ensure appropriate co-ordination and co-operation with third country regulatory authorities where appropriate.

(2) When forming part of a college of supervisors, the competent authority shall contribute towards the provision of a framework for the consolidating supervisor, EBA and other European regulatory authorities or third country regulatory authorities forming part of that college, to carry out the following tasks:

(a) exchange information with European regulatory authorities and third country regulatory authorities forming part of that college and with EBA in accordance with Article 21 of Regulation (EU) No 1093/2010;

(b) agreeing on voluntary entrustment of tasks and voluntary delegation of responsibilities where appropriate;

(c) determining supervisory examination programmes referred to in Article 99 of the CRD based on a risk assessment of the group in accordance with Article 97 of the CRD;

(d) increasing the efficiency of supervision by removing unnecessary duplication of supervisory requirements, including in relation to the information requests referred to in Article 114 and Article 117(3) of the CRD;

(e) consistently applying the prudential requirements under the CRD and the CRR across all entities within a group of investment firms, without prejudice to the options and discretions available in European Union law; and

(f) applying Article 112(1)(c) of the CRD taking into account the work of other fora that may be established in that area.

(2A) In order to facilitate the tasks referred to in sub-regulation

(1) and regulations 4(1), 5(1), 6(1), and 6(2), where the competent authority is the consolidating supervisor, it shall also establish colleges of supervisors where all the cross-border subsidiaries of an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company have their head offices in third countries:

Provided that the third countries’ regulatory authorities are subject to confidentiality requirements that are equivalent to the requirements laid down in the Malta Financial Services Authority Act and any other applicable law.

(3) The competent authority, when forming part of a college of supervisors, shall co-operate closely with EBA and all the European regulatory authorities and third country regulatory authorities forming part of the relevant college of supervisors. The confidentiality requirements under the Malta Financial Services Authority Act and the Act shall not prevent the competent authority from exchanging confidential information within colleges of supervisors. The establishment and functioning of colleges of supervisors shall not affect the rights and responsibilities of the competent authority under the provisions of the Act, and any regulations or Rules made thereunder transposing the requirements of the CRD, and under the CRR.

(4) Where the competent authority is the consolidating supervisor of these regulations, it shall establish and manage the colleges of supervisors based on written arrangements referred to in regulation 6, determined after consultation with European regulatory authorities and third country regulatory authorities concerned.

(5) The competent authority may form part of a college of supervisors when:

(a) it is responsible for the supervision of subsidiaries (SUPERVISORY CONSOLIDATION) 370.46 (CAPITAL REQUIREMENTS DIRECTIVE) of an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company;

(b) Malta is the host Member State where significant branches as referred to in regulation 14 are established;

(c) Malta is the Member State where a financial holding company or a mixed financial holding company that has been granted approval in accordance with Article 10CA of the Act is established.

(6) Where the competent authority is the consolidating supervisor, it shall chair the meetings of the college and shall decide which European regulatory authorities and third country regulatory authorities, where relevant, participate in a meeting or in an activity of the college. The decision shall take into account the relevance of the supervisory activity to be planned or co-ordinated for those authorities, and in particular, the potential impact on the stability of the financial system in the Member States concerned and, in particular, in emergency situations, based on the information available at the relevant time and the obligations referred to in regulation 14(6) and (7).

(7) The competent authority, as consolidating supervisor, shall keep all members of the college fully informed, in advance, of the organisation of the meetings of the college, about the main issues to be discussed and the activities to be considered and shall also keep all the members of the college fully informed, in a timely manner, of the actions taken in those meetings or the measures carried out.

(8) The competent authority as consolidating supervisor shall, subject to the confidentiality requirements of the Malta Financial Services Authority Act and the Act, inform the EBA of the activities of the college of supervisors, including in emergency situations, and communicate to the EBA all the information that is of particular relevance for the purposes of supervisory convergence.

(9) In the case of disagreement between the competent authorities on the functioning of the supervisory colleges, the competent authority may refer the matter to the EBA and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/ 2010.

(10) Without prejudice to the provisions of sub-regulation (6), when the competent authority is the consolidating supervisor it may invite the following entities to participate in the college which it shall chair:

(a) the European regulatory authorities responsible for the supervision of subsidiaries of an EU parent institution, an EU parent financial holding company or an EU parent mixed financial holding company;

(b) the European regulatory authorities of a host member state where significant branches, as referred to in Article 51 of the CRD, are established;

(c) ECSB central banks, where appropriate; and

(d) third-country regulatory authorities where appropriate, subject to confidentiality requirements that are equivalent, in the opinion of the competent authority and all the European regulatory authorities concerned, to the requirements under Chapter 1, Section II of the CRD, and where applicable, Chapter 1, Section 2 of Title IV of the IFD.