PART 4PRA and FCA: cooperation and co-ordination
Significant branches: UK is the home EEA State or EEA consolidating supervisor16
1
Paragraphs (2) and (3) of this regulation apply where—
a
an appropriate regulator is the competent authority of the home EEA State or the EEA consolidating supervisor of a credit institution or an investment firm which is not subject to Article 95 of the capital requirements regulation; and
b
the appropriate regulator has received a request (or a copy of a request) from the competent authority of a host EEA State for a branch of the credit institution or investment firm established in that State to be designated as significant.
2
The appropriate regulator must make every effort to reach a joint decision with the competent authority of the host EEA State and, where appropriate, the EEA consolidating supervisor, on the designation of the branch as significant.
3
Where a joint decision has not been reached and the competent authority of the host EEA State has made and notified the appropriate regulator of its own decision to designate the branch as significant, the appropriate regulator must recognise that decision as determinative.
4
Paragraphs (5) to (9) of this regulation apply where the appropriate regulator is the competent authority of the home EEA State and a decision has been made to designate a branch of an institution established in another EEA State as significant.
5
The appropriate regulator must M1—
a
in relation to the institution for which it is the home EEA State competent authority, communicate to the competent authority of the host EEA State the information referred to in regulation 8(2)(d) or (e);
b
in preparation for and during an emergency situation, plan and co-ordinate supervisory activities in cooperation with the competent authority of the host EEA State and, if necessary, its central bank;
c
notify a competent authority of the host EEA State of the outcome of any risk assessment referred to in Article 97 of the capital requirements directive or, where applicable, regulation 29 or 31 of these Regulations;
d
notify the competent authority of the host EEA State of any decision to exercise a supervisory power or impose a specific liquidity requirement, insofar as that decision is relevant to the branch; and
e
consult a competent authority of a host EEA State about the operational steps required by Article 86(11) of the capital requirements directive where that is relevant to liquidity risks in the host EEA State's currency.
6
Where the appropriate regulator—
a
is not required to establish a college of supervisors by regulation 33; and
b
the institution has significant branches in two or more EEA States other than the United Kingdom,
it must, acting on the basis of written co-ordination and co-operation agreements entered into after consulting the competent authorities of the host EEA States, establish a college of supervisors in accordance with paragraphs (7) to (9).
7
The purpose of the college of supervisors is to facilitate co-operation under regulation 11 and paragraph (5) of this regulation.
8
Where it establishes a college of supervisors, the appropriate regulator must—
a
inform members in advance about the organisation of and agenda for any meeting of the college of supervisors, including any activities to be considered at that meeting;
b
decide which competent authorities may attend any meeting or participate in any activity;
c
chair any meeting; and
d
inform members in a timely manner of the actions taken at any meeting or any activities carried out.
9
When making a decision under paragraph (8)(b), the appropriate regulator must take into account the relevance to each competent authority of the supervisory activity to be planned or coordinated, and in particular—
a
the potential impact on the stability of the financial system in the EEA State concerned; and
b
the obligations under paragraph (5).