5.6 Communication framework for a significant-plus branch

The consolidating supervisor and the home and host competent authorities should strive to ensure that the messages communicated to the institution or the group concerning the branch are consistent. To this end, the consolidating supervisor and the home and host authorities should ensure that they have consulted each other before issuing any form of formal communication to the group or institution pertaining to the branch.

When communicating with the significant-plus branch, and in particular requesting information needed for the performance of its tasks in accordance with the applicable legislation, including these guidelines, the host competent authority should duly inform and coordinate with the consolidating supervisor or the home competent authority.

At a minimum, the consolidating supervisor and the home and host competent authorities should organise a joint annual meeting with the branch management, where possible attended also by the representatives of the senior management of the institution, to discuss the following:

• (a) the financial performance of the branch at year-end and any forecasts for the branch’s performance in the medium term;
• (b) the business strategy of the branch and how the branch will contribute to and implement the strategy of the institution;
• (c) the branch’s main activities and its relevant risks; and
• (d) the supervisory findings concerning the operations of the branch and actions taken or to be taken by the institution to remedy the relevant issues.

If either the consolidating supervisor or the home or host competent authority is not able to participate in this joint meeting, the relevant authorities should inform the others accordingly, and the authorities should share the conclusions of the meeting and discuss any follow-up actions.

The consolidating supervisor and the home and host competent authorities should agree on the form and frequency of joint meetings with the senior management of the institution to discuss issues more specifically relevant to the significant-plus branch or issues that may potentially affect the branch.

These joint meetings with the institution and with the branch management should be duly reflected in the college SEP.