Exchange of information between the competent authority of the home Member State and members of the college of supervisors
1. The competent authority of the home Member State and the members of the college of supervisors shall exchange all information necessary to facilitate the cooperation under Article 50 and Article 51(2) of Directive 2013/36/EU.
2. The competent authority of the home Member State and the members of the college of supervisors shall exchange all information necessary to facilitate the cooperation referred to in Articles 6, 7 and 8 of Directive 2014/59/EU.
3. The competent authority of the home Member State and the members of the college of supervisors shall exchange the information referred to in Articles 6 and 15 of Commission Delegated Regulation (EU) No 524/2014 ( 16 ) .
4. The competent authority of the home Member State and the members of the college of supervisors shall exchange the information referred to in paragraphs 1 to 3, whether received from the institution, a competent authority, a supervisory authority or any other source. That information shall be sufficiently adequate, accurate and timely.
Exchange of information between the competent authority of the home Member State and the observers of the college of supervisors
1. Where the information referred to in Article 32 is relevant for the performance of the tasks of the observers as set out in the written coordination and cooperation arrangements of the college of supervisors, the competent authority of the home Member State shall communicate that information to the relevant observers.
2. The resolution authority of the home Member State and the competent authority of the home Member State shall exchange all information required to ensure that the college of supervisors and the resolution college fulfil their role as set out in Article 51(3) of Directive 2013/36/EU and in Article 88 of Directive 2014/59/EU, respectively.
3. The competent authority of the home Member State shall provide the resolution authority of the home Member State with the following:
(a)
the required own funds pursuant to Article 104(1), point (a), of Directive 2013/36/EU and any guidance on additional own funds communicated to institutions in accordance with Article 104b of that Directive;
(b)
relevant information for the purposes of Articles 12, 13, 16, 18, 25, 30, 45h, 91 and 92 of Directive 2014/59/EU;
(c)
information referred to in Article 32(3) of this Regulation.
Exchange of information on the outcome of the supervisory review and evaluation and of information on early warning signs, potential risks, and vulnerabilities
1. The competent authority of the home Member State shall communicate to the members of the college of supervisors:
(a)
the information referred to in Article 3, 4 and 5, Articles 7 to 13 and Article 17 of Delegated Regulation (EU) No 524/2014;
(b)
the value of the leverage ratio of the parent entity referred to in Article 429 of Regulation (EU) No 575/2013;
(c)
the required own funds referred to in Article 104(1), point (a), of Directive 2013/36/EU and any guidance on additional own funds in accordance with Article 104b of that Directive as a result of the supervisory review and evaluation carried out in accordance with Article 97 of that Directive.
2. For the purposes of identifying risks and vulnerabilities for the institution and its significant branches, the competent authority of the home Member State and the members of the college of supervisors shall exchange qualitative and quantitative information on:
(a)
the macroeconomic environment in which the institutions and its significant branches operate;
(b)
adverse developments in markets that may have the potential to jeopardise the market liquidity and the stability of the financial system in the Member States where the institution or its significant branches are established and may adversely impact the institution and its significant branches.
3. Where the institution infringes or, due, inter alia, to a rapidly deteriorating financial condition, is likely in the near future to infringe the requirements of Regulation (EU) No 575/2013 or Directive 2013/36/EU as referred to in Article 27(1) of Directive 2014/59/EU, the competent authority of the home Member State shall provide the members of the college of supervisors with the following information:
(a)
whether the conditions for application of early intervention measures are met;
(b)
whether early intervention measures are taken or planned in accordance with Articles 27 and 30 of Directive 2014/59/EU;
(c)
an indication of the potential consequences of those early intervention measures.
Exchange of information for the assessment of the recovery plan
1. The competent authority of the home Member State shall consult the members of the college of supervisors on the recovery plan where relevant to the significant branch concerned, in accordance with Article 6(2) of Directive 2014/59/EU.
2. For the purposes of paragraph 1, the competent authority of the home Member State shall provide the recovery plan of the institution to the members of the college of supervisors in accordance with Article 20 of Implementing Regulation (EU) 2025/790.
3. The competent authority of the home Member State shall inform all members of the college of supervisors of the outcome of the consultation referred to in paragraph 1.
Examination programme
1. For the purposes of adopting the examination programme of the college of supervisors referred to in Article 99 of Directive 2013/36/EU, the competent authority of the home Member State and the members of the college of supervisors shall identify the supervisory activities to be undertaken.
2. The examination programme of the college of supervisors shall contain at least the following:
(a)
the areas of joint work identified as a result of the supervisory review and evaluation pursuant to Article 97 of Directive 2013/36/EU or as a result of any other activities undertaken by the college of supervisors;
(b)
the areas of focus of the work of the college of supervisors and its planned supervisory activities, including planned on-the-spot checks and inspections of the significant branches pursuant to Article 52(3) of Directive 2013/36/EU;
(c)
the members of the college of supervisors responsible for undertaking the planned supervisory activities;
(d)
where relevant, the allocation of tasks and responsibilities for entrustment of tasks and delegation of responsibilities respectively;
(e)
where applicable, the observers of the college of supervisors where those observers are involved in a supervisory activity;
(f)
the expected timelines, both in terms of timing and duration, for each of the planned supervisory activities.
3. When establishing and updating the examination programme of the college of supervisors, the competent authorities of the home Member State and the members of the college of supervisors shall exchange views on possible entrustment of tasks and delegation of responsibilities. On that basis, the competent authorities of the home Member State and the members of the college of supervisors shall consider to conclude an agreement, on a voluntary basis, on entrustment of tasks, including any possible delegation of responsibilities, where relevant, pursuant to Article 116(1), point (b), of Directive 2013/36/EU, provided that such entrustment or delegation is expected to lead to more efficient and effective supervision of the group, in particular by removing unnecessary duplications of supervisory requirements, including requirements in relation to information requests.
4. The conclusion of an agreement on entrustment of tasks or delegation of responsibilities shall be notified by the competent authorities of the home Member State to the institution concerned, and by the competent authority that delegates its powers to the branch concerned.
Event of adverse material effect on the risk profile of the institution or its significant branches
1. The competent authority of the home Member State and the relevant members of the college of supervisors shall exchange quantitative and qualitative information on any event of adverse material effect in the institution or its significant branches that could seriously affect the institution as referred to in Article 117(1), point (c), of Directive 2013/36/EU.
2. In case of such an event of adverse material effect on the risk profile of the institution or its significant branches established in a Member State, competent authorities shall assess the consequences of such event on the institution and its significant branches and determine:
(a)
the nature and severity of the event;
(b)
the impact or potential impact of the event on the available own funds and liquidity level of the institution and its significant branches and whether the institution continues to comply with Regulation (EU) No 575/2013 or Directive 2013/36/EU in adverse macroeconomic, microeconomic, and geopolitical conditions;
(c)
the ability of the institution and its significant branches to operate in severe business disruption;
(d)
risk of cross-border contagion and the potential systemic impact.
3. Upon being alerted of an event of adverse material effect on the risk profile by any member of the college of supervisors, or after having identified such event, the competent authority of the home Member State shall inform the members of the college of supervisors that supervise significant branches affected or likely to be affected by that event, and EBA. Observers, in particular the resolution authority of the home Member State, shall be informed if the information is relevant for the performance of their tasks.
4. The competent authority of the home Member State and the members of the college of supervisors that supervise significant branches affected or likely to be affected by the event of adverse material effect shall monitor the situation and update the information referred to in paragraph 1, where applicable, immediately when relevant new information is available.
5. Based on the outcome of the assessment of the event of adverse material effect referred to in paragraph 2 and the foreseen evolution of that event, the competent authority of the home Member State and the relevant members of the college of supervisors may coordinate the development of a coordinated supervisory response.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
