Article 2
Conditions in accordance with which the consolidation is to be carried out in the case of groups of undertakings that are related within the meaning of Article 22(7) of Directive 2013/34/EU
1. Where consolidation is required pursuant to Article 18(3) of Regulation (EU) No 575/2013, the following entity shall be responsible for ensuring compliance with the requirements laid down in Part One, Title II, Chapter 2, Section 1, of Regulation (EU) No 575/2013 on the basis of the consolidated situation of all undertakings of the group:
|
(a) |
the institution, where there is only one institution within the group; |
|
(b) |
the credit institution with the largest balance sheet total, where there are several credit institutions within the group; |
|
(c) |
the investment firm subject to Regulation (EU) No 575/2013 with the largest balance sheet total, where the group does not include any credit institution. |
2. For the purposes of paragraph 1, the balance sheet total shall be calculated on the basis of the latest audited consolidated financial statements or, where consolidated financial statements are not required to be prepared in accordance with the applicable accounting framework, the latest audited individual financial statement of the institution.
3. Where the application of the criteria referred to in paragraph 1 of this Article would be inappropriate, the competent authorities responsible for exercising supervision on a consolidated basis pursuant to Article 111(4), (5), and (6) of Directive 2013/36/EU of the European Parliament and of the Council (9) may waive those criteria, and designate another entity within the group subject to Regulation (EU) No 575/2013 as responsible for ensuring compliance with the requirements referred to in Part One, Title II, Chapter 2, Section 1, of that Regulation on the basis of the consolidation situation of all undertakings of the group.
When assessing the appropriateness of the application of the criteria referred to in paragraph 1 of this Article, those competent authorities shall take into account any decision taken in accordance with Article 111(6) of Directive 2013/36/EU or, in the absence of such decision, the institutions concerned and the relative importance of their activities in the relevant Member States or whether they are required to prepare consolidated financial statements for the group in the cases referred to in Article 22(7) of Directive 2013/34/EU. In such cases, the institution with the largest balance sheet total shall have the right to be heard, before the competent authorities take the decision.
4. In the cases referred to in this Article, the competent authorities responsible for exercising supervision on a consolidated basis pursuant to Article 111(4), (5) and (6) of Directive 2013/36/EU shall permit or require the use of the method of consolidation provided for in Article 22(8) and (9) of Directive 2013/34/EU.
5. An undertaking that is related to one or more undertakings within the meaning of Article 22(7) of Directive 2013/34/EU need not be included in the consolidation pursuant to this Article in the same cases and in accordance with the same criteria as set out in Article 19 of Regulation (EU) No 575/2013.
(9) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).