Assessment of intra-group transactions

In order to perform supplementary supervision of intra-group transactions of regulated entities in a financial conglomerate, the coordinator should, in cooperation with the relevant competent authorities, monitor how intra-group transactions may create potential contagion effects within the conglomerate, conflicts of interests and circumvention of sectoral rules.

The coordinator and the competent authorities should decide whether or not to request from regulated entities within the financial conglomerate further information in addition to the information already collected through existing reporting in different jurisdictions and sectors, taking into account the structure of the financial conglomerate.

The coordinator and the competent authorities should agree on:

• a) the types of intra-group transactions to be monitored, taking into account the structure of the financial conglomerate, as well as the definition of intra-group transaction under Article 2(18) of Directive 2002/87/EC; and
• b) the reporting thresholds for intra-group transactions, based on regulatory capital and/or technical provisions.

The coordinator and the competent authorities should inform each other about any supervisory action or measures taken towards the entities within the financial conglomerate in relation to intra-group transactions. The coordinator should stand ready to facilitate the identification of joint supervisory measures on the subject.