The Capital Requirements (Amendment) Regulations 2010 (revoked)

Exercise of supervision U.K.

4.  In Part 3 (exercise of supervision), for regulation 10 (the Authority's duties as an EEA consolidated supervisor) substitute—

“10.   Regulations 10A, 11, 12 and 12A apply where the Authority is the EEA consolidated supervisor.

10A.— (1) The Authority must submit a report containing its risk assessment of a banking or investment group to the relevant competent authorities.

(2) Subject to paragraph (8), the Authority must take all reasonable steps to reach a joint decision with the relevant competent authorities, within four months of submitting its report, on—

(a) the application of Articles 123 and 124 of the banking consolidation directive to determine the adequacy of the consolidated level of own funds held by the group with respect to its financial situation and risk profile; and

(b) the required level of own funds for the application of Article 136(2) of the banking consolidation directive to each member of the group and to the group as a whole.

(3) The Authority must consider, for the purposes of reaching a joint decision, the risk assessments prepared in relation to subsidiaries by the relevant competent authorities.

(4) The Authority must provide the relevant institution with a document setting out the fully reasoned joint decision.

(5) Where a joint decision cannot be reached, the Authority must, at the request of any of the relevant competent authorities, consult the Committee of European Banking Supervisors, or may do so of its own initiative.

(6) Subject to paragraph (8), if a joint decision has not been made within four months of the Authority submitting its report in accordance with paragraph (1), the Authority must—

(a) after considering the risk assessments prepared in relation to subsidiaries by the relevant competent authorities and any advice given by the Committee of European Banking Supervisors, make a decision on the matters referred to in paragraph (2);

(b) where the Authority's decision differs significantly from any advice given by the Committee of European Banking Supervisors, give reasons for the difference;

(c) provide all relevant competent authorities and the relevant institution with a document containing its decision and the decisions of the relevant competent authorities on the levels of own funds required to be held by subsidiaries on an individual or, where appropriate, sub-consolidated basis;

(d) recognise the decisions taken by the relevant competent authorities, mentioned in sub-paragraph (c), as determinative.

(7) The Authority must update the joint decision reached in accordance with paragraph (2) or its own decision made under paragraph (6)(a)—

(a) annually; or

(b) in exceptional circumstances, on receipt of a fully reasoned written request by a relevant competent authority to update the decision on the application of Article 136(2) of the banking consolidation directive;

and, where sub-paragraph (b) applies, the updated decision may be made after consultation with the competent authority making the request, without consulting the other relevant competent authorities.

(8) Where the Authority submits a report in accordance with paragraph (1) before 1st January 2013, for “four months” in paragraphs (2) and (6) substitute “ six months ”.

(9) In this regulation “relevant institution” means the credit institution or investment firm for whose supervision on a consolidated basis the Authority is responsible.

10B.— (1) This regulation applies where the Authority is a relevant competent authority and receives a report containing the risk assessment of a banking or investment group from the EEA consolidated supervisor.

(2) The Authority must submit to the EEA consolidated supervisor a report containing its risk assessment of each subsidiary of the group it has authorised.

(3) Subject to paragraph (7), the Authority must take all reasonable steps to reach a joint decision with the EEA consolidated supervisor and any other relevant competent authorities on the matters referred to in regulation 10A(2) within four months of the Authority receiving the report from the EEA consolidated supervisor.

(4) Where agreement on a joint decision cannot be reached, the Authority may request that the EEA consolidated supervisor consults the Committee of European Banking Supervisors.

(5) Subject to paragraph (7), if a joint decision has not been reached within four months of the Authority receiving the report from the EEA consolidated supervisor, the Authority must—

(a) make a decision on the level of own funds required to be held by each subsidiary it has authorised, on an individual or, where appropriate, sub-consolidated basis, in accordance with Articles 123, 124 and 136(2) of the banking consolidation directive, taking into account the views of the EEA consolidated supervisor and any advice given by the Committee of European Banking Supervisors;

(b) where the Authority's decision differs significantly from any advice given by the Committee of European Banking Supervisors, give reasons for the difference;

(c) provide the EEA consolidated supervisor with a document containing its decision; and

(d) recognise the decisions taken by the EEA consolidated supervisor and any other relevant competent authorities on the levels of own funds required to be held by the banking or investment group or its subsidiaries outside the United Kingdom, as determinative.

(6) The Authority may, in exceptional circumstances, make a fully reasoned written request to the EEA consolidated supervisor to update the decision on the level of own funds required to be held by any subsidiary of the group within the United Kingdom in accordance with article 136(2) of the banking consolidation directive.

(7) Where the Authority receives the report from the EEA consolidated supervisor before 1st January 2013, for “four months” in paragraphs (3) and (5) substitute “ six months ”.”.