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Article 5 - Planning of the steps of the joint decision process

Article 5

Planning of the steps of the joint decision process

1.   Prior to the start of the joint decision process, the consolidating supervisor and the relevant competent authorities shall agree on a timetable of steps to be followed in the joint decision process and on the division of work. In case of disagreement, the consolidating supervisor shall set the timetable after considering the views and reservations expressed by the relevant competent authorities. The timetable shall be set within 6 weeks of receipt of a complete application. Upon finalisation, the timetable shall be forwarded by the consolidating supervisor to the relevant competent authorities.

2.   The timetable shall include the date of receipt of the complete application pursuant to Article 4(9) and at least the following steps:

(a)

agreement on the timetable and the division of work between the consolidating supervisor and the relevant competent authorities;

(b)

agreement on the scope of involvement of third country supervisory authorities pursuant to Article 3;

(c)

dialogue between the consolidating supervisor, the relevant competent authorities and the applicant on the details of the application, where this is deemed as necessary by the consolidating supervisor and the relevant competent authorities;

(d)

submission of the assessment reports from the relevant competent authorities to the consolidating supervisor pursuant to Article 6(2);

(e)

dialogue on the assessment reports between the consolidating supervisor and the relevant competent authorities pursuant to Article 7(2);

(f)

preparation and submission of the draft joint decision from the consolidating supervisor to the relevant competent authorities pursuant paragraphs 3 and 4 of Article 7;

(g)

consultation on the draft joint decision with the applicant, where required by the legislation of a Member State;

(h)

dialogue between the consolidating supervisor and the relevant competent authorities on the draft joint decision pursuant to Article 7(4);

(i)

submission of the draft joint decision from the consolidating supervisor to the relevant competent authorities for agreement and reaching of the joint decision pursuant to Article 8;

(j)

communication of the joint decision to the applicant pursuant to Article 9.

3.   The timetable shall fulfil all of the following requirements:

(a)

it shall be proportionate to the scope of the application;

(b)

it shall reflect the scope and complexity of each task performed by the relevant competent authorities and the consolidating supervisor, as well as the complexity of the institutions of the group to which the joint decision is to apply;

(c)

it shall take into account, so far as possible, the other activities being undertaken by the consolidating supervisor and the relevant competent authorities under the college supervisory examination programme referred to in Article 16 of Delegated Regulation (EU) 2016/98.

4.   The division of work shall reflect the following:

(a)

the scope and complexity of the application;

(b)

the materiality of the scope of the application for each institution;

(c)

the type and location of the exposures or risks to which the application relates;

(d)

the extent to which exposures or risks assumed in a particular jurisdiction contribute to the materiality of changes or extensions of the models when assessed at the consolidated level;

(e)

the ability of the consolidating supervisor and each relevant competent authority to execute the necessary tasks to perform an assessment and give a fully reasoned opinion.

For the purposes of point (c) of the first subparagraph, where the geographical location of exposures or risks is different from the location at which the exposures or risks are managed, credited or traded, the division of work shall establish separate responsibilities for the competent authorities of the Member State in which the exposures or risks are located, and for the competent authorities of the Member State in which those exposures or risks are managed, credited or traded.

5.   The consolidating supervisor shall communicate to the applicant an indicative date for the dialogue referred to in point (c) of paragraph 2 and an estimated date for the communication referred to in point (i) of paragraph 2.

6.   Where it becomes necessary to update the timetable or the division of work, the consolidating supervisor shall do so in consultation with the relevant competent authorities.

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Initial Legal Act

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