S.L. 371.22 Art. 13Third country consolidated supervision.

(1) Where a credit institution licensed in terms of the Act, the parent undertaking of which is an institution or a financial holding company or mixed financial holding company, the head office of which is established in a third country, is not subject to consolidated supervision, the competent authority shall assess whether the credit institution is subject to consolidated supervision by a third country regulatory authority which is equivalent to that governed by the principles laid down in this regulation and the requirements of Part One, Title II, Chapter 2 of the CRR.

(2) The competent authority, as consolidating supervisor, if sub-regulation (4) were to apply, shall carry out the assessment at the request of the parent undertaking or of any of the regulated entities authorised in the Union or on its own initiative. The competent authority shall consult the other European regulatory authorities.

(3) In carrying out the assessment referred to in sub-regulation (1), the competent authority shall take into account any guidance issued by the European Banking Committee as to whether the consolidated supervision arrangements of third country regulatory authorities are likely to achieve the objectives of consolidated supervision as defined in this regulation, in relation to credit institutions licensed in terms of the Act, the parent undertaking of which has its head office in a third country. For this purpose, the competent authority shall consult the EBA before making a decision.

(4) In the absence of such equivalent supervision, the competent authority shall apply the provisions of the Act, any regulations or Rules made thereunder transposing the requirements of the CRD, of any binding legal instrument issued under the CRD and of the CRR to the credit institution mutatis mutandis or apply other appropriate supervisory techniques which achieve the objectives of supervision on a consolidated basis of institutions. Such supervisory techniques shall be agreed upon by the competent authority, as consolidating supervisor, after consultation with other European regulatory authorities involved. The supervisory techniques shall be designed to achieve the objectives of consolidated supervision as set out in this regulation and shall be notified to other European regulatory authorities involved, the EBA and the Commission.

(5) The competent authority may in particular require the establishment of a financial holding company or mixed financial holding company with its head office in the European Union, and apply the provisions on consolidated supervision to the consolidated position of that financial holding company or the consolidated position of the institutions of that mixed financial holding company.

(6) The competent authority may, in terms of Article 48 of the CRD, request the Commission to submit proposals to the Council to negotiate agreements with one or more third countries regarding the means of exercising supervision on a consolidated basis over the following:

(a) credit institutions the parent undertakings of which have their head offices in a third country;

(b) credit institutions situated in third countries the parent undertakings of which, whether institutions, financial holding companies or mixed financial holding companies, have their head offices in the Union.