S.L. 371.22 Art. 3Responsibility of the competent authority for consolidated supervision. 

(1) Subject to the provisions of article 11B of the

Act, the competent authority shall exercise supervision on a consolidated basis:

 (a) where the parent undertaking is a parent credit institution established in Malta or in another Member State or an EU parent credit institution supervised by the competent authority on an individual basis;

(aa) Deleted by Legal Notice 44 of 2025.

(b) where a parent undertaking is a parent investment firm established in Malta or in another Member State or an EU parent investment firm and at least one of its subsidiaries is a credit institution supervised by the competent authority: Provided that, where there are several credit institutions, the competent authority shall exercise supervision on a consolidated basis where it supervises the credit institution with the largest balance sheet total;

(c) where the parent of a credit institution supervised by the competent authority on an individual basis is a parent financial holding company established in Malta or in another Member State, a parent mixed financial holding company established in Malta or in another Member State, an EU parent financial holding company or EU parent mixed financial holding company;

(d) where two or more institutions authorised in the European Union, one of which is a credit institution supervised by the competent authority, have the same parent financial holding company established in Malta or in another Member State, parent mixed financial holding company established in Malta or in another Member State, EU parent financial holding company or EU parent mixed financial holding company, and:

(i) the competent authority supervises the credit institution, which is the only credit institution within the group; or

(ii) the competent authority supervises the credit institution with the largest balance sheet total, where there are several credit institutions within the group:

Provided that, for the purposes of this paragraph, the term "institution" shall also include investment firms;

(da) Deleted by Legal Notice 44 of 2025.

(e) where consolidation is required pursuant to Article 18(3) or (6) of the CRR and the competent authority supervises the credit institution with the largest balance sheet total.

(2) By way of derogation from sub-regulation (1)(b), (d)(ii) and (e), the competent authority shall be the consolidating supervisor where it supervises on an individual basis one or more credit institutions within a group, and the sum of the balance sheet totals of those supervised credit institutions is higher than that of the credit institutions supervised on an individual basis by any other European regulatory authority.

(3) In particular cases, the criteria referred to in sub-regulation (1)(a), (b), (d) and (e) may be waived by common (CREDIT INSTITUTIONS)

agreement of the competent authority with the other relevant European regulatory authorities and a European regulatory authority may be appointed to exercise supervision on a consolidated basis where the application of the criteria referred to in such sub-regulation (1)(a), (b), (d) and (e) would be inappropriate, taking into account the credit institutions or investment firms concerned and the relative importance of their activities in the relevant Member States, or the need to ensure the continuity of supervision on a consolidated basis by the same European regulatory authority. In these cases, before such decision is taken the EU parent institution, EU parent financial holding company, EU parent mixed financial holding company or the institution with the largest balance sheet total, as applicable, shall have the right to be heard.

(4) The competent authority shall notify the Commission and the EBA without delay of any agreement falling within sub-regulation (3).

(5) Where the competent authority is the consolidating supervisor, it shall provide the relevant European regulatory authorities and EBA with all information regarding the group of credit institutions in accordance with Articles 14(3), 74(1) and 109(2) of the CRD, in particular regarding the legal and organisational structure of the group and its governance.