5.8 Allocation of tasks among competent authorities

The consolidating supervisor and the home and host competent authorities should ensure that the operational framework of the college of supervisors not only enables but also achieves an efficient and effective allocation of tasks among all authorities involved in supervising a significant-plus branch in accordance with these guidelines.

For that purpose, the consolidating supervisor or the home competent authority should regularly assess whether an efficient and effective task allocation that enables supervision of the significant-plus branch in accordance with these guidelines has been achieved and, if not, propose improvements to the college’s operational framework by means of an amendment to the written arrangements or to the college SEP.

The task allocation mechanism established within the college operational framework should be deemed efficient and effective when it achieves the following objectives:

• (a) it avoids unnecessary duplication of tasks, optimises supervisory resources, employs all available intelligence and expertise, and removes unnecessary burdens on the supervised institutions;
• (b) it reflects supervisory expertise in terms of technical skills or knowledge of the local market, ensuring that each competent authority performs the tasks it is best placed to perform;
• (c) it reflects the manner in which a supervised entity that operates on a cross-border basis through significant-plus branches is organised and is proportionate to the nature, scale and complexity of the supervised entity concerned;
• (d) it is well suited to the supervision of an institution considering its management organisation (i.e. centralisation/decentralisation) and in terms of the organisation of its business lines.

The consolidating supervisor and the home and host competent authorities should agree on the terms of the task allocation and duly reflect them in the college’s written coordination and cooperation arrangements. The college should be duly informed of the existence and, where relevant, the outcome of the allocation arrangements.

Where dissenting views on the task allocation mechanism arise among the authorities and agreement is prevented, the authorities should file with the EBA a request as referred to in Article 31(c) of Regulation (EU) No 1093/2010 along with all information necessary for the EBA to form an opinion on the disputed issues and assist the authorities in coming to a common conclusion. All the competent authorities involved should take into account the EBA’s opinion and settle the issue accordingly.

At a minimum, these terms should detail the following:

• (a) the specific activities to be allocated to each authority;
• (b) the relevant applicable legal framework;
• (c) the roles and the responsibilities of the authorities involved, especially where task allocation is different from task allocation under Regulation (EU) No 575/2013 and Directive 2013/36/EU following an agreement on the delegation of tasks;
• (d) the type of information to be exchanged among supervisors for the performance of the tasks;
• (e) the language, frequency and means/form of the information to be exchanged;
• (f) the standards under which tasks should be executed;
• (g) possible feedback, advice or instructions from one authority to the other;
• (h) the working methods to be used;
• (i) access to the documentation produced after a task that has been allocated has been accomplished;
• (j) the timetable for completion of the allocated tasks;
• (k) the terms under which the authority to which a task has been allocated is to report to the college; and
• (l) the terms under which early termination of any task allocation may take place.

The consolidating supervisor and the home and host competent authorities should inform the institution and the significant-plus branch about the task allocation in accordance with the college’s communication framework.

For the purpose of putting in place the most efficient task allocation, the consolidating supervisor and the home and host competent authorities should examine the legal and operational feasibility of the delegation of tasks, where it is allowed under EU or national legislation, with a view to establishing this as a task allocation mechanism. The examination of the legal and operational feasibility of delegation should be made on a voluntary and a by-task basis without prejudice to the competences and responsibilities allocated to national authorities or Union institutions.

Any delegation of tasks on a voluntary basis should be in line with EU and national legislation and be fully agreed among the authorities involved at least with regard to the elements referred to in paragraph 81 and any other elements required to establish a legally safe and fully operational mechanism for task allocation.

The consolidating supervisor and the home and host competent authorities involved in the supervision of a significant-plus branch should work out the best possible allocation of tasks within the college framework in accordance with the previous paragraphs even, and in particular, when delegation proper is not deemed to be legally and operationally feasible.