Article 16
Cooperation and mutual recognition
1. For the purposes of conducting a TLPT in relation to a financial entity providing services in more than one Member State, including through a branch, its TLPT authority shall:
(a) |
determine which TLPT authorities in host Member States shall be involved, taking into account whether one or more critical or important functions are operated in, or shared across, host Member States; |
(b) |
inform the TLPT authorities identified in accordance with point (a) of the decision to carry out a TLPT test on the financial entity; |
(c) |
unless otherwise agreed by the TLPT authorities, the TLPT authority of the financial entity shall lead the TLPT. |
The TLPT authorities of the host Member States may, within 20 working days from the receipt of the information on a future conduct of a TLPT, either express their interest in following the TLPT as observers or assign a test manager to participate in the TLPT. The lead TLPT authority shall provide all TLPT authorities acting as observers in TLPT with the scope specification document, the test summary report, remediation plan and attestation.
The lead TLPT authority shall coordinate all participating TLPT authorities throughout the test and adopt all the decisions necessary to carry out the TLPT appropriately and effectively. The lead TLPT authority may set a maximum number of participating TLPT authorities, where the efficient conduct of the TLPT might otherwise be compromised.
2. Where a financial entity uses the same ICT intra-group service provider as financial entities established in other Member States, or belongs to a group and shares ICT systems with financial entities of the same group established in other Member States, the TLPT authority of the financial entity shall contact the TLPT authorities of the other financial entities using the same ICT intra-group service provider or sharing ICT systems as part of the group and assess with them the feasibility and suitability of conducting a joint TLPT in their respect. A joint TLPT shall be preferred to an individual TLPT where it may result in reduction of costs and resources for the financial entities and for the TLPT authorities, provided that the soundness and efficacy of the testing is not prejudiced.
3. For the purposes of conducting a joint TLPT:
(a) |
the TLPT authorities of the financial entities shall agree on which financial entity shall be designated to conduct the TLPT, considering the group structure and the efficiency of the test; |
(b) |
the TLPT authority of the financial entity designated in accordance with point (a) shall lead the TLPT, unless otherwise agreed by the TLPT authorities of the financial entities participating in the joint TLPT; |
(c) |
the TLPT authorities of the financial entities other than the designated financial entity to lead the joint TLPT may either express their interest in following the TLPT as observers or assign a test manager for that TLPT. |
The lead TLPT authority shall coordinate all TLPT authorities involved in the joint TLPT and adopt all the decisions necessary to carry out the joint TLPT in a sound and effective way.
4. Where a financial entity intends to conduct a pooled TLPT as referred to in Article 26(4) of Regulation (EU) 2022/2554 possibly involving financial entities established in other Member States, its TLPT authority shall contact the TLPT authorities of the other financial entities and assess with them the feasibility and suitability of conducting a pooled TLPT in their respect in accordance with Article 26(4) of Regulation (EU) 2022/2554.
5. For the purposes of conducting a pooled TLPT as referred to in Article 26(4) of Regulation (EU) 2022/2554:
(a) |
the TLPT authorities of the financial entities shall agree on which financial entity shall be designated to conduct of the pooled TLPT, considering the ICT services provided by the ICT third-party service provider to the financial entities and the efficiency of the test; |
(b) |
the TLPT authority of the financial entity designated in accordance with point (a) shall lead the TLPT, unless otherwise agreed by the TLPT authorities of the financial entities participating in the pooled TLPT; |
(c) |
the TLPT authorities of the financial entities other than the designated financial entity to lead the pooled TLPT may either express their interest in following the TLPT as observers or assign a test manager to that TLPT. |
The lead TLPT authority shall coordinate all TLPT authorities involved in the pooled TLPT and adopt all the decisions necessary to carry out the pooled TLPT in a sound and effective way.
6. Where, in relation to a financial entity required to perform a TLPT, its TLPT authority differs from its competent authority as referred to in Article 46 of Regulation (EU) 2022/2554, those authorities shall share any relevant information in respect of all TLPT-related matters for the purposes of carrying out the TLPT or to carry out their duties in accordance with that Regulation.