S.L. 370.46 Art. 8Joint decisions on specific prudential requirements. 

(1) The competent authority, whether it is the consolidating supervisor or the competent authority 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 which are investment firms, shall do everything within its power to reach a joint decision with the other European regulatory authorities:

(a) on the application of Articles 73 and 97 of the

CRD as transposed in the Investment Services Rules and in

Investment Services Act (Supervisory Review) Regulations to determine the adequacy of the consolidated level of own funds held by the group of institutions with respect to its financial situation and risk profile and the required level of own funds for the application of point (a) of Article 104(1) of the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations, each entity within the group of institutions and on a consolidated basis;

(b) on measures to address any significant matters and material findings relating to liquidity supervision, including relating to the adequacy of the organisation and the treatment of risks as required pursuant to Article 86 of the CRD as transposed in the Investment Services Rules and relating to the need for institution-specific liquidity requirements in accordance with Article 105 of the CRD as transposed in the

Investment Services Act (Supervisory Review) Regulations.

(c) on any guidance on additional own funds referred to in Article 104b(3) of the CRD as transposed in the

Investment Services Act (Supervisory Review) Regulations.

(2) Where it is the consolidating supervisor, the (SUPERVISORY CONSOLIDATION) 370.46 (CAPITAL REQUIREMENTS DIRECTIVE) competent authority shall submit –

(a) for the purpose of sub-regulation (1)(a), a report containing the risk assessment of the group of institutions in accordance with Article 104a of the CRD as transposed in the

Investment Services Act (Supervisory Review) Regulations to the other relevant European regulatory authorities;

(b) for the purpose of sub-regulation (1)(b), a report containing the assessment of the liquidity risk profile of the group of institutions in accordance with Articles 86 and 105 of the CRD as transposed in the Investment Services Rules and in the Investment Services Act (Supervisory Review) Regulations, to the other relevant European regulatory authorities;

(c) for the purpose of sub-regulation (1)(c), a report containing the risk assessment of the group of institutions in accordance with Article 104b of the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations, to the other relevant European regulatory authorities.

(3) The joint decisions referred to in sub-regulation

(1) shall be reached within four (4) months from submission of the reports referred to in sub-regulation (2):

Provided that the joint decisions referred to in sub-regulation (1) shall also duly consider the risk assessment of subsidiaries performed by the competent authority and, or relevant European regulatory authorities in accordance with

Articles 73, 97, 104a and 104b of the CRD as transposed in the

Investment Services Rules and in the Investment Services Act

(Supervisory Review) Regulations.

(4) Where the competent authority is the consolidating supervisor, it shall provide the EU parent institution concerned with the joint decisions referred to in sub-regulation (1), which shall be set out in a document containing the full reasons for the decisions. In the event of disagreement, the competent authority shall, at the request of any of the other European regulatory authorities concerned, consult the EBA:

Provided that the competent authority, when it is the consolidating supervisor, may consult the EBA on its own initiative.

(5) In the absence of such a joint decision within the time period referred to in sub-regulation (3) and, or regulation 8, a decision on the application of Articles 73, 86, 97, 104(1)(a), 104b and 105 of the CRD as transposed in the Investment Services Rules and in the

Investment Services Act (Supervisory Review) Regulations shall be taken by the competent authority, where it is acting as the consolidating supervisor, on a consolidated basis, after duly considering the risk assessment of subsidiaries performed by the relevant European regulatory authorities:

Provided that:

(a) if, at the end of the time period referred to in sub-regulation (3), any of the European regulatory authorities concerned have referred the matter to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the competent authority shall defer its decision and await any decision the EBA may take in accordance with Article 19(3) of the said Regulation. The competent authority shall take its decision in conformity with the decision of the EBA. The time period referred to in sub-regulation (3) shall be deemed to be the conciliation period within the meaning of Regulation (EU) No 1093/2010;

(b) where the competent authority is not acting as consolidated supervisor but is responsible for the supervision of subsidiaries of an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company, it may refer the matter to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end of the time period referred to above in sub-regulation (3) or after a joint decision has been reached.

(6) Where the competent authority is not the consolidating supervisor but is responsible for the supervision of a subsidiary of an

EU parent credit institution or an EU parent financial holding company or an EU parent mixed financial holding company, which is a credit institution, and in the absence of a joint decision in terms of this regulation within the time period referred to in regulation 8, the competent authority shall decide on the application of Articles 73, 86,

97, 104(1)(a), 104b and 105 of the CRD as transposed in the

Investment Services Rules and in the Investment Services Act (Supervisory Review) Regulations on an individual or sub-consolidated basis, after duly considering the views and reservations expressed by the consolidating supervisor:

Provided that if at the end of the time period referred to in regulation 8 and as transposed in the Investment Services Act

(Supervisory Review) Regulations, any of the European regulatory (SUPERVISORY CONSOLIDATION) 370.46 (CAPITAL REQUIREMENTS DIRECTIVE) authorities concerned have referred the matter to the EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the competent authority shall defer its decision and await any decision that the EBA shall take in accordance with Article 19(3) of the said Regulation. The competent authority shall take its decision in conformity with the decision of the EBA. The time period referred to above shall be deemed to be the conciliation period within the meaning of the said Regulation:

(7) Where the competent authority is not acting as consolidated supervisor but is responsible for the supervision of subsidiaries of an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company, it may, in the event of any disagreement, refer a dispute to the EBA on its own initiative but prior to a joint decision being made, provided that no referral shall be made once the time period specified in regulation 8 has expired.

(8) (a) The decisions taken by the competent authority referred to in this regulation shall be set out in a document containing fully reasoned decisions and shall take into account the risk assessment, views and reservations of the competent authority or the other European regulatory authorities, as applicable, expressed during the time period referred to in sub-regulation (3).

(b) The competent authority shall provide the document referred to above to the European regulatory authorities concerned and to the EU parent institution. Where the EBA has been consulted, the competent authority shall consider its advice and explain any significant deviation therefrom.

(c) The joint decisions referred to in sub-regulation

(1) and the decisions taken by the competent authority or European regulatory authorities in terms of regulation 8 shall be recognised as determinative and shall be applied by the competent authority, where applicable.

(9) The decisions referred to in sub-regulation (1) and any decision taken in terms of sub-regulations (5) and (6) shall be updated on an annual basis or, in exceptional circumstances, where the competent authority is responsible for the supervision of subsidiaries of an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company which are investment firms, it may make a written and fully reasoned request to the consolidating supervisor to update the decision on the application of Article 104(1)(a), Article 104b and Article 105 of the CRD as transposed in the Investment Services Act (Supervisory Review) Regulations. In those exceptional circumstances, such update may be addressed on a bilateral basis between the competent authority and the consolidating supervisor:

Provided that, where the competent authority is the consolidating supervisor, it shall update the decisions at the request of the European regulatory authorities responsible for the supervision of subsidiaries of an EU parent institution, or an EU parent financial company, or an EU parent mixed financial holding company. The competent authority may address the update to the European regulatory authority making the request, on a bilateral basis.