Commission Implementing Regulation (EU) No 710/2014Show full title

Article 10 U.K. Preparation of the draft capital joint decision

1. The consolidating supervisor shall prepare a fully reasoned draft capital joint decision covering the group and the institutions of this group. The draft capital joint decision shall set out each of the following items:

(a) the names of the consolidating supervisor and relevant competent authorities involved in the capital joint decision process;

(b) the name of the group of institutions and a list of all institutions within the group to which the draft capital joint decision relates and applies;

(c) the references to the applicable Union and national law relating to the preparation, finalisation and application of capital joint decisions;

(d) the date of the draft capital joint decision and of any relevant update thereto;

(e) the conclusion on the application of Articles 73 and 97 of Directive 2013/36/EU;

(f) the conclusion on the adequacy of own funds held by the group of institutions at consolidated level;

(g) the conclusion on the adequacy of own funds held by each institution of the group at individual level;

(h) the conclusion on the level of own funds that each institution of the group is required to hold at individual level pursuant to point (a) of Article 104(1) of Directive 2013/36/EU;

(i) the conclusion on the level of own funds that the group of institutions is required to hold at consolidated level pursuant to point (a) of Article 104(1) of Directive 2013/36/EU;

(j) information on the minimum prudential requirements which apply to each institution pursuant to Article 92 of Regulation (EU) No 575/2013 and Articles 103, 129, 130, 131 and 133 of Directive 2013/36/EU and on any other relevant prudential or macro-prudential requirements, guidelines, recommendations or warnings;

(k) the reference date to which the conclusions referred to in points (e) to (i) relate;

(l) the timeline for the implementation of the conclusions referred to in points (h) and (i), where applicable.

2. The conclusion referred to in point (e) of paragraph 1 shall set out each of the following items:

(a) the assessment of whether the institutions of the group have in place sound, effective and complete strategies and processes to assess, maintain and distribute internal capital and whether such strategies and processes are up to date;

(b) the assessment of whether the amounts, types and distribution of internal capital is adequate to cover the nature and level of risks to which the institutions of the group are exposed or might be exposed;

(c) the assessment of whether the institutions of the group have implemented appropriate arrangements, strategies, processes and mechanisms to comply with all requirements of Directive 2013/36/EU and Regulation (EU) No 575/2013;

(d) the assessment of whether the arrangements, strategies, processes and mechanisms implemented by the institutions of the group ensure a sound management and coverage of their risks;

(e) information on the application of supervisory measures and powers pursuant to Article 102 and points (b) to (l) of Article 104(1) of Directive 2013/36/EU to address deficiencies identified under points (a) to (d).

3. The conclusions referred to in points (f) and (g) of paragraph 1 shall be linked to and supported by the conclusion referred to in point (e) of paragraph 1.

4. The conclusions referred to in points (h) and (i) of paragraph 1 shall meet all of the following requirements:

(a) they shall be formulated as an amount or a ratio or a combination of both;

(b) they shall provide details of the quality of additional own funds required;

(c) they shall be linked to and supported by the conclusion referred to in point (e) of paragraph 1.

5. The conclusions regarding each institution of the group at individual level and the group of institutions at consolidated level shall be clearly identifiable in the draft capital joint decision document.

6. The consolidating supervisor shall provide the draft capital joint decision document to the relevant competent authorities in a timely manner and in any event by the deadline specified in the joint decision timetable pursuant to point (g) of Article 3(2).