2.3. Organisational arrangements

Competent authorities should ensure that their organisational arrangements for conducting SREP include at least the following:

• a. a description of the roles and responsibilities of their supervisory staff with respect to performing the SREP, as well as the relevant reporting lines, in both normal and emergency situations;
• b. procedures for documenting and recording findings and supervisory judgements;
• c. arrangements for the approval of the findings and scores, as well as escalation procedures where there are dissenting views within the competent authority, in both normal and emergency situations;
• d. arrangements for organising dialogue with the institution following the model of minimum engagement as stipulated in section 2.4 to assess individual SREP elements;
• e. arrangements for engaging in consultations with an institution and for communicating the outcomes of the SREP to the institution, reflecting the interaction within colleges of supervisors for cross-border groups and their entities, in accordance with Commission Implementing Regulation (EU) No 710/2014¹⁹ ;
• f. internal checks and balances to support effective decision-making, consistency of outcomes and accountability.

¹⁹ Commission Implementing Regulation (EU) No 710/2014 of 23 June 2014 laying down implementing technical standards with regard to conditions of application of the joint decision process for institution-specific prudential requirements according to Directive 2013/36/EU of the European Parliament and of the Council (OJL 188, 27.6.2014, p. 19, ELI: http://data.europa.eu/eli/reg_impl/2014/710/oj).

When defining arrangements for dialogue with institutions, competent authorities should consider the potential implications of providing the scores to the institutions in terms of their disclosure obligations pursuant to the requirements of Regulation (EU) No 596/2014²⁰ and Directives 2014/57/EU²¹ and 2004/109/EC²² .

²⁰ Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market-abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJL 173, 12.6.2014, p. 1).

²¹ Directive 2014/57/EU of the European Parliament and of the Council of 16 April 2014 on criminal sanctions for market abuse (market-abuse directive) (OJL 173, 12.6.2014, p.179, ELI: http://data.europa.eu/eli/reg/2014/596/oj).

²² Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (OJL 390, 31.12.2004, p.38, ELI: http://data.europa.eu/eli/dir/2004/109/oj).