5.4 Information needed for the supervision of significant-plus branches

Without prejudice to the provisions of Commission Delegated Regulation (EU) No 524/2014 and Commission Implementing Regulation (EU) No 620/2014, the consolidating supervisor and the home and host competent authorities involved in the supervision of significant-plus branches should ensure that they share, by means of making available on their own initiative or upon request, all the information pertaining to the group, the institution or the branch that is adequate, accurate and relevant for the branch’s effective and efficient supervision as set out in these guidelines.

When assessing the relevance of a particular piece or set of information, the consolidating supervisor and the home and host competent authorities should, in a proportionate manner and on a risk basis, endeavour to anticipate the impact of such information on the following:

• (a) the activities of the branch;
• (b) the governance and organisation of the branch, the institution or the group as a whole;
• (c) the potential impact on the financial stability of any Member State, including that where the branch operates;
• (d) the potential relevance of the information for the host competent authority’s decision regarding the imposition of the general good conditions in relation to the branch, the activities in the host Member State; and
• (e) the potential impact of the risks taken by the institution through the significant-plus branch on the institution and its viability.

The consolidating supervisor and the home and host competent authorities should, without prejudice to the provisions of Commission Delegated Regulation (EU) No 524/2014 and Commission Implementing Regulation (EU) No 620/2014, ensure that they share at least, in a proportionate and appropriate manner, adequate information on the following items:

• (a) internal and, where available, external audit reports and the institution’s internal risk reports focusing on the branch’s position within the institution and on the risks taken by the institution through the significant-plus branch;
• (b) liquidity reports from the institution collected in accordance with Article 415 of Regulation (EU) No 575/2013;
• (c) any relevant information that either the home or host competent authority obtained from the institution while developing the branch risk assessment in accordance with Section 5.1 of these guidelines;
• (d) reports summarising the findings of on-the-spot checks and inspections of the branch undertaken either by the consolidating supervisor or the home or host competent authority in accordance with Section 5.3 of these guidelines, focusing on the branch’s position within the group and on the risks taken by the institution through the significant-plus branch;
• (e) information on branch-specific supervisory and other measures taken or planned by the consolidating supervisors or the home competent authority (see also Section 5.5);
• (f) any precautionary measures taken by the host competent authority based on Article 43 of Directive 2013/36/EU and measures taken based on Article 50(4) of that Directive (see also Section 5.5);
• (g) information on upcoming major changes affecting the branch, such as changes in the IT system or business model of the institution, and any relevant business continuity and contingency arrangements;
• (h) information regarding operational events, including any substantial faults or disruptions in services provided to customers, in payment services or in IT systems insofar as relevant to the branch, including cyber or information security attacks and threats, as well as disruptions or faults damaging or jeopardising the capacity of the branch to continue its business activities or fulfil its obligations as a payment systems and payment services provider;
• (i) information regarding strategies or business plans relating to the future operations of the branch, including but not limited to any offering of significant new products or services not covered by Article 39 of Directive 2013/36/EU;
• (j) documentation emanating from the application of Articles 143, 151(4) and (9), 283, 312 and 363 of Regulation (EU) No 575/2013;
• (k) information relevant to the assessment of the group recovery plan or the institution’s plan.

Such information should be exchanged in a timely manner and in written or electronic form, as far as possible making use of secure means of communication, aiming to facilitate the performance of the relevant supervisory tasks in an efficient and effective way.

In liquidity stress situations, the competent authorities should notify each other in accordance with the requirements of Article 17 of Commission Delegated Regulation (EU) No 524/2014 and following the procedure set out in Commission Implementing Regulation (EU) No 620/2014, and, in providing the information specified in Article 17(3) of Commission Delegated Regulation (EU) No 524/2014, should explain the expected impact of the stress on the liquidity of the institution and provide the latest available liquidity ratios in the domestic currency of the institution’s home Member State and in all other currencies that are material for the institution.