2014年-EBA欧洲银行管理局_JC_GL_2014_01_28Joint_Guidelines_on_coordination_arrangements_for_financi_36页_498kb

Joint Guidelines on Supervisory Coordination for Financial Conglomerates

Core Content

These Joint Guidelines, issued under the Financial Conglomerates Directive (FICOD) and the European Supervisory Authorities (ESAs) Regulations, aim to converge supervisory practices and enhance cross-border and cross-sectoral cooperation among competent authorities in the supervision of financial conglomerates. The guidelines are designed to ensure consistent supervisory coordination arrangements, reduce administrative burdens, and enhance the level playing field in the financial market.

Main Objectives

• To clarify and strengthen cooperation between competent authorities in the context of supplementary supervision of financial conglomerates.
• To support the functioning of sectoral colleges where cross-border groups are identified as financial conglomerates.
• To ensure consistent supervisory coordination to avoid double gearing and monitor group-level risks such as contagion, complexity, concentration, and conflicts of interest.

Key Areas Covered

The guidelines address five main areas:

1. Mapping procedure and coordination arrangements
2. Coordination of information exchange in going concern and emergency situations
3. Supervisory assessment of financial conglomerates
4. Supervisory planning and coordination in going concern and emergency situations
5. Decision-making processes among competent authorities

Main Points

1. Mapping Procedure

• The mapping process is used to identify entities that constitute a financial conglomerate and are subject to supplementary supervision.
• It must be conducted in cooperation with relevant competent authorities and should consider the structure, scale, and complexity of the conglomerate.
• The mapping process is updated at least annually and must include EEA and non-EEA subsidiaries and branches, as well as intra-group participations.
• The coordinator should use the template in Annex 1 to set out the mapping.

2. Cooperation Structure

• The coordinator may add specific items to the agenda of sectoral colleges or establish new procedural arrangements (e.g., dedicated meetings).
• The coordinator must involve the ESAs in these arrangements and ensure timely and full communication among competent authorities.

3. Written Coordination Arrangements

• Existing sectoral coordination arrangements should be complemented to support supplementary supervision.
• These arrangements should include procedures for emergency situations, with faster response and more frequent contact.
• The coordinator may also agree on new arrangements at the conglomerate level, which should include information exchange frequency, scope, and assessment procedures.

4. Coordination with Third Country Authorities

• If a financial conglomerate has significant entities in third countries, the coordinator must involve their supervisory authorities.
• This is subject to Article 19 of FICOD and equivalent supervisory approaches and comparable confidentiality arrangements.

5. Information Exchange in Going Concern and Emergency Situations

• Scope of information exchange includes all relevant or essential information for the tasks outlined in FICOD.
• Frequency and format of information exchange should be agreed upon by the coordinator and competent authorities.
• Confidential information must be shared through secure communication channels.
• The coordinator is responsible for communication with the parent undertaking or the entity with the largest balance sheet.

6. Supervisory Assessment

The guidelines outline the assessment of five key areas:

• Financial situation of the conglomerate: coordinator should assess the overall risk profile and identify vulnerabilities and deficiencies.
• Capital adequacy policies: coordinator must review group-wide policies and consult with competent authorities on exclusion of entities from capital calculations.
• Risk concentration: coordinator should monitor contagion effects, conflicts of interest, and sectoral rule circumvention.
• Intra-group transactions: coordinator must identify potential contagion effects and define reporting thresholds based on regulatory capital or technical provisions.
• Internal control and risk management: coordinator should coordinate with competent authorities to assess risk management systems, internal controls, and methodologies used, and ensure consistency among authorities.

Implementation and Reporting

• Competent authorities are required to notify the relevant ESA (EBAM, EIOPA, ESMA) by 23 February 2015 whether they comply with or intend to comply with the guidelines.
• Non-compliance will be assumed if no notification is received by the deadline.
• Notifications should be submitted using the form provided in Section 5 and sent to the appropriate ESA email addresses.

Conclusion

These guidelines provide practical guidance for supervisory coordination, information exchange, and assessment procedures in the context of financial conglomerates. They aim to enhance cooperation, reduce administrative burdens, and ensure consistent and effective supervision across borders and sectors.