5.2 Coordination of activities and supervisory examination programme

The college SEP referred to in Article 11 and Article 20 of Commission Implementing Regulation (EU) 2016/99 should, in the case of a significant-plus branch, take into account the outcome of that branch’s risk assessment performed in accordance with Section 5.1.

Where the branch risk assessment has identified significant risks to capital, liquidity and funding that the branch is or might be exposed to, and/or risks to the viability of the institution stemming from the branch, including from the branch’s governance and risk controls, the conclusions of the assessment should inform the supervisory activities planned by the consolidating supervisor and the home and host authorities to be noted in the college SEP.

While developing the college SEP, the consolidating supervisor and the home and host competent authorities should discuss the allocation of work and division of tasks for the performance of the planned supervisory activities concerning the significant-plus branch and they should explore the opportunities for some of these activities to be performed jointly by the home and host competent authorities.

In order to avoid duplication of supervisory tasks and duplication of information requests to the supervised institution concerning the significant-plus branch, the home and host competent authorities should consider when developing the college SEP the appropriate allocation of tasks, as specified in Section 5.8.