Assessment of capital adequacy policies

The coordinator and the relevant competent authorities should review the policies on capital planning of regulated entities in a financial conglomerate. The review on a group-wide basis should have regard to and build on, similar analyses carried out at the sectoral level and the individual entity basis.

Such assessments are without prejudice to capital adequacy requirements as set out in the sectoral legislation and should not duplicate the calculation of the capital adequacy of the financial conglomerate according to the delegated regulation of the European Commission supplementing Directive 2002/87/EC.⁴

⁴ Commission delegated Regulation (EU) No 342/2014 of 21 January 2014 supplementing Directive 2002/87/EC of the European Parliament and of the Council and Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the application of the calculation methods of capital adequacy requirements for financial conglomerates (OJ L100, 3.4.2014, p.1)

The coordinator is responsible for the assessment of the conglomerate’s capital adequacy policies. In order to prepare the assessment, the coordinator should take into account the assessments of such policies provided by the relevant competent authorities.

With respect to capital adequacy calculations, the coordinator should consult the relevant competent authorities on the exclusion of an entity from the calculation; see paragraph 58 point (a) of these guidelines.