Commission Delegated Regulation (EU) 2017/392Show full title

Article 8 Financial reports, business plan, and recovery plan

1. An application for authorisation shall include the following financial and business information to enable the competent authority to assess compliance of the applicant CSD with Articles 44, 46 and 47 of Regulation (EU) No 909/2014:

(a) financial reports including a complete set of financial statements for the preceding three years, and the statutory audit report on the annual and consolidated financial statements within the meaning of Directive 2006/43/EC of the European Parliament and of the Council(1), for the preceding three years;

(b) where the applicant CSD is audited by an external auditor, the name and the national registration number of the external auditor;

(c) a business plan, including a financial plan and an estimated budget that foresees various business scenarios for the services provided by the applicant CSD, over a reference period of at least three years;

(d) any plan for the establishment of subsidiaries and branches and their location;

(e) a description of the business activities that the applicant CSD plans to carry out, including the business activities of any subsidiaries or branches of the applicant CSD.

2. Where historical financial information referred to in point (a) of paragraph 1 is not available, an application for authorisation shall include the following information about the applicant CSD:

(a) evidence that demonstrates sufficient financial resources during six months after the granting of an authorisation;

(b) an interim financial report;

(c) statements concerning the financial situation of the applicant CSD, including a balance sheet, income statement, changes in equity and in cash flows and a summary of accounting policies and other relevant explanatory notes;

(d) audited annual financial statements of any parent undertaking for the three financial years preceding the date of the application.

3. The application shall include a description of an adequate recovery plan to ensure continuity of the applicant CSD's critical operations referred to in Article 22(2) of Regulation (EU) No 909/2014 including:

(a) a summary that provides an overview of the plan and its implementation;

(b) the identification of the critical operations of the applicant CSD, stress scenarios and events triggering recovery, and a description of recovery tools to be used by the applicant CSD;

(c) an assessment of any impact of the recovery plan on stakeholders that are likely to be affected by its implementation;

(d) an assessment of the legal enforceability of the recovery plan that takes account of any legal constraints imposed by Union, national or third country legislation.

(1)

Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).