Cap. 370 Art. 33Assessment of third country supervision and other supervisory techniques.

(1) Where two or more European investment firms that are subsidiaries of the same parent undertaking, the head office of which is in a third country, are not subject to effective supervision at group level, the competent authority shall, together with any other

European regulatory authority involved, assess whether the European investment firms are subject to supervision by the third-country supervisory authority which is equivalent to the supervision set out in the IFD as transposed in national law and in Part One of the IFR.

(2) Where the assessment referred to in sub-article (1) concludes that no such equivalent supervision applies, the competent authority shall adopt appropriate supervisory techniques which achieve the objectives of supervision in accordance with Article 7 or 8 of the IFR. Those supervisory techniques shall be decided by the competent authority where it would have been the group supervisor had the parent undertaking been established in the European Union, after consulting the European regulatory authorities involved. Any measures taken pursuant to this paragraph by the competent authority shall be notified to the European regulatory authorities involved, to EBA and to the Commission of the European Union.

(3) Without prejudice to sub-article (2), where the competent authority would have been the group supervisor had the parent undertaking been established in the European Union, it may require the establishment of an investment holding company or mixed financial holding company in the European Union and apply Article 7 or 8 of the IFR to that investment holding company or mixed financial holding company.