Article 21b
Intermediate EU parent undertaking
1.
Two or more institutions in the Union, which are part of the same third-country group, shall have a single intermediate EU parent undertaking that is established in the Union.
2.
Competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where they determine that the establishment of a single intermediate EU parent undertaking would:
(a)
be incompatible with a mandatory requirement for separation of activities imposed by the rules or supervisory authorities of the third country where the ultimate parent undertaking of the third-country group has its head office; or
(b)
render resolvability less efficient than in the case of two intermediate EU parent undertakings according to an assessment carried out by the competent resolution authority of the intermediate EU parent undertaking.
3.
An intermediate EU parent undertaking shall be a credit institution authorised in accordance with Article 8, or a financial holding company or mixed financial holding company that has been granted approval in accordance with Article 21a.
By way of derogation from the first subparagraph of this paragraph, where none of the institutions referred to in paragraph 1 of this Article is a credit institution or where a second intermediate EU parent undertaking must be set up in connection with investment activities to comply with a mandatory requirement as referred to in paragraph 2 of this Article, the intermediate EU parent undertaking or the second intermediate EU parent undertaking, may be an investment firm authorised in accordance with Article 5(1) of Directive 2014/65/EU that is subject to Directive 2014/59/EU.
4.
Paragraphs 1, 2 and 3 shall not apply where the total value of assets in the Union of the third-country group is less than EUR 40 billion.
5.
For the purposes of this Article:
(a)
the total value of assets in the Union of the third‐country group shall be the sum of the following:
(i)
the total value of assets of each institution in the Union of the third‐country group, as resulting from its consolidated balance sheet or as resulting from their individual balance sheets, where an institution’s balance sheet is not consolidated; and
(ii)
the total value of assets of each branch of the third‐country group authorised in the Union in accordance with this Directive, Regulation (EU) No 600/2014 of the European Parliament and of the Council ( 4 ) or Directive 2014/65/EU;
(b)
the term ‘institution’ shall also include investment firms.
6.
Competent authorities shall notify the following information in respect of each third-country group operating in their jurisdiction to EBA:
(a)
the names and the total value of assets of supervised institutions belonging to a third-country group;
(b)
the names and the total value of assets corresponding to branches authorised in that Member State in accordance with this Directive, Directive 2014/65/EU or Regulation (EU) No 600/2014, and the types of activities that they are authorised to carry out;
(c)
the name and the type as referred to in paragraph 3 of any intermediate EU parent undertaking set up in that Member State and the name of the third-country group of which it is part.
7.
EBA shall publish on its website a list of all third-country groups operating in the Union and their intermediate EU parent undertaking or undertakings, where applicable.
Competent authorities shall ensure that each institution under their jurisdiction that is part of a third-country group meets one of the following conditions:
(a)
it has an intermediate EU parent undertaking;
(b)
it is an intermediate EU parent undertaking;
(c)
it is the only institution in the Union of the third-country group; or
(d)
it is part of a third-country group with a total value of assets in the Union of less than EUR 40 billion.
8.
By way of derogation from paragraph 1, third-country groups operating through more than one institution in the Union and with a total value of assets in the Union equal to or greater than EUR 40 billion on 27 June 2019 shall have an intermediate EU parent undertaking or, if paragraph 2 applies, two intermediate EU parent undertakings by 30 December 2023.
9.
By 30 December 2026 the Commission shall, after consulting EBA, review the requirements imposed on institutions by this Article and submit a report to the European Parliament and to the Council. That report shall, at least, consider:
(a)
whether the requirements laid down in this Article are operable, necessary and proportionate and whether other measures would be more appropriate;
(b)
whether the requirements imposed on institutions by this Article should be revised to reflect best international practices.
10.
By 28 June 2021, EBA shall submit a report to the European Parliament, to the Council and to the Commission on the treatment of third-country branches under national law of Member States. That report shall, at least, consider:
(a)
whether and to what extent supervisory practices under national law for third-country branches differ between Member States;
(b)
whether a different treatment of third-country branches under national law could result in regulatory arbitrage;
The Commission shall, if appropriate, submit a legislative proposal to the European Parliament and to the Council, based on the recommendations made by EBA.
( 4 ) Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).