4.1 Branch significance and mapping: initial assessment and updates

Without prejudice to the stipulations of Article 51 of Directive 2013/36/EU, the consolidating supervisor or the home competent authority should, in the context of the mapping of the institution or the group performed in accordance with Articles 2 and 23 of Commission Delegated Regulation (EU) 2016/98 and Articles 2 and 17 of Commission Implementing Regulation (EU) 2016/99, conduct its own assessment of the importance of a given branch for that particular institution or group on the basis of the criteria referred to in paragraphs 28-31.

The consolidating supervisor or the home competent authority should note its assessment of the branch’s importance to the institution or the group in the relevant field of the mapping template referred to in Articles 2 and 17 and Annex I of Commission Implementing Regulation (EU) 2016/99.

Where the consolidating supervisor or the home competent authority has, on the basis of its assessment, determined that a branch is important for the institution or the group, it should communicate its view to the host competent authority, independently or in the process of finalising the mapping of the institution or the group in accordance with Article 2 of Commission Implementing Regulation (EU) 2016/99, and invite that authority to consider applying the process referred to in Article 51 of Directive 2013/36/EU to determine the branch to be significant.

Where the consolidating supervisor or the home competent authority has communicated to the host competent authority that it considers the branch important for the institution or for the group, the host competent authority should consider whether to apply the process set out in Article 51 of Directive 2013/36/EU and provide, either independently or in the context of its views or comments on the mapping of the institution or the group referred to in Article 2 of Commission Implementing Regulation (EU) 2016/99, the consolidating supervisor or the home competent authority with its views.

The consolidating supervisor or the home competent authority should assess the importance for the institution or the group of a given branch on a periodic basis and at least during every update of the mapping of the institution or the group referred to in Article 2 of Commission Implementing Regulation (EU) 2016/99. The host competent authority should ensure continuous monitoring of the conditions set out in Article 51 of Directive 2013/36/EC for branches established within its supervisory remit.

Where the consolidating supervisor or the home competent authority considers the branch important for the institution or the group, but the host competent authority does not deem it significant within the meaning of Article 51 of Directive 2013/36/EC, the consolidating supervisor or the home competent authority should nevertheless invite the host competent authority to participate in the college of supervisors in accordance with Article 3(2) of Commission Delegated Regulation (EU) 2016/98 and Article 3(1)(b) of Commission Implementing Regulation (EU) 2016/99.

After the branch has been designated significant in accordance with Article 51 of Directive 2013/36/EU, the consolidating supervisor and the home competent authority should, without undue delay, update the mapping of the institution or the group. In particular, it should be noted in the mapping of the institution or the group whether the host competent authority participates in the relevant college as a member (significant branch) or as an observer (non-significant branch), as provided for in Article 4 of Commission Delegated Regulation (EU) 2016/98, and the list of the college’s members and observers should be updated accordingly.