3. Joint Guidelines on the convergence of supervisory practices relating to the consistency of supervisory coordination arrangements for financial conglomerates

This document contains guidelines issued pursuant to Articles 16 and 56 subparagraph 1 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC; Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority); and Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority)) - ‘ the ESAs’ Regulations’. In accordance with Article 16(3) of the ESAs’ Regulations, competent authorities and financial institutions must make every effort to comply with the guidelines.

Guidelines set out the ESAs’ view of appropriate supervisory practices within the European System of Financial Supervision or of how Union law should be applied in a particular area. Competent authorities to whom guidelines apply should comply by incorporating them into their supervisory practices as appropriate (e.g. by amending their legal framework or their supervisory processes), including where guidelines are directed primarily at institutions.

In accordance with Article 16(3) of the ESAs’ Regulations, competent authorities must notify the respective ESA whether they comply or intend to comply with these guidelines, or otherwise with reasons for non-compliance, by 23 February 2015 . In the absence of any notification by this deadline, competent authorities will be considered by the respective ESA to be non-compliant. Notifications should be sent by submitting the form provided at Section 5 to compliance@eba.europa.eu, ficodguidelines.compliance@eiopa.europa.eu and compliance.ficod@esma.europa.eu with the reference ‘JC/GL/2014/01’. Notifications should be submitted by persons with appropriate authority to report compliance on behalf of their competent authorities.

Notifications will be published on the ESAs’ websites, in line with Article 16(3).

Title I - Subject matter and scope

Title II- Mapping procedure, cooperation structure and coordination arrangements

Mapping procedure

Cooperation structure

Written coordination arrangements between the coordinator and the competent authorities

Coordination arrangements with the supervisory authorities of third countries

Title III – Coordination of information exchange in going concern and emergency situations

Scope and frequency

Collecting information

Communication channels

Communication with the financial conglomerate

Communication in emergency situations

Title IV- Supervisory assessment of financial conglomerates

Assessment of a financial conglomerate’s financial situation

Assessment of capital adequacy policies

Assessment of risk concentration

Assessment of intra-group transactions

Assessment of internal control mechanisms and risk management processes

Title V- Supervisory planning and coordination of supervisory activities in going concern and emergency situations

Planning and coordination of supervisory activities

Coordinated action plan

Sharing and delegation of tasks

Emergency planning

Title VI - Decision-making processes among competent authorities

Procedures to be used in consultation processes

Procedures to be used in agreement processes

Procedures to be used in the annual reassessment of waivers

Procedures to be used in the coordination of enforcement measures

Title VII- Final provisions and implementation