Article 11
Exchange of information with regard to the ongoing review of the permission to use internal approaches and non-material extensions or changes in internal models
1. The consolidating supervisor and the relevant members of the college of supervisors that supervise institutions that have been granted permission to use internal approaches in accordance with Articles 143(1), Article 151(4) or (9), Article 283, Article 312(2), or Article 363 of Regulation (EU) No 575/2013, shall exchange all relevant information with regard to the outcome of the ongoing review of the permission to use internal approaches as referred to in Article 101 of Directive 2013/36/EU.
2. Where the consolidating supervisor or any relevant member of the college of supervisors referred to in paragraph 1 has identified that an institution established in a Member State, including the EU parent undertaking, no longer meets the requirements for applying an internal approach or has identified material deficiencies in accordance with Article 101 of Directive 2013/36/EU, that consolidating supervisor or member of the college of supervisors shall immediately exchange the following information, as applicable, to reach the common agreement as referred to in Article 8 of Implementing Regulation (EU) 2025/790:
(a) |
an assessment of the effect of the deficiencies identified and any issues of non-compliance with the requirements for using internal approaches and the materiality of those deficiencies and issues; |
(b) |
an assessment of the plan presented by the EU parent institution or any institution established in a Member State to restore compliance with the requirements for using internal approaches and to address the deficiencies identified, including information on the timeline for the implementation of that plan; |
(c) |
information about the intention of the consolidating supervisor or any relevant member of the college of supervisors to revoke the permission to use internal approaches or to restrict the use of those internal approaches to compliant areas or to those areas where compliance can be achieved within an appropriate timeline, or to those areas that are not affected by the deficiencies identified; |
(d) |
information about any proposed additional own funds requirements imposed pursuant to Article 104(1), point (d), of Directive 2013/36/EU, as a supervisory measure to address the issues of non-compliance or deficiencies identified. |
3. The consolidating supervisor and the relevant members of the college of supervisors referred to in paragraph 1 shall also exchange information about extensions of the permission to use internal approaches or changes in those internal approaches that are not material, as referred to in Article 13 of Commission Implementing Regulation (EU) 2016/100 (14).
4. Information referred to in paragraphs 1 and 2 shall be discussed and taken into account while developing the group risk assessment and reaching a joint decision in accordance with Article 113(1), point (a), of Directive 2013/36/EU.
5. The consolidating supervisor shall inform the competent authorities of the host Member States where significant branches are established on the information referred to in paragraphs 1 and 2, where that information is relevant to those competent authorities.
(14) Commission Implementing Regulation (EU) 2016/100 of 16 October 2015 laying down implementing technical standards specifying the joint decision process with regard to the application for certain prudential permissions pursuant to Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ L 21, 28.1.2016, p. 45, ELI: http://data.europa.eu/eli/reg_impl/2016/100/oj).