European Communities (Credit Institutions) (Consolidated Supervision) Regulations 2009

• Jurisdiction: Ireland
• Citation: IR SI 475/2009
• Year: 2009

S.I. No. 475 of 2009

EUROPEAN COMMUNITIES (CREDIT INSTITUTIONS) (CONSOLIDATED SUPERVISION) REGULATIONS 2009

ARRANGEMENT OF REGULATIONS

PART 1

Preliminary Provisions

1. Citation.

2. Commencement.

3. Interpretation.

PART 2

Consolidated Supervision of Credit Institutions and Financial Holding Companies

4. Bank to be responsible for supervising certain credit institutions and financial holding companies on consolidated basis.

5. Consolidation of financial situation of financial holding company not to require Bank to play supervisory role.

6. Parent of subsidiary credit institution to provide Bank with information about subsidiary.

7. Power of Bank to require consolidation of subsidiary credit institutions and financial institutions.

8. Bank to determine whether and how consolidation is to be carried out.

9. Bank to be responsible for exercising general supervision over transactions between credit institution and mixed-activity holding company and subsidiaries in certain cases.

10. Bank to co-operate closely with competent authorities of other Member States.

11. Bank to enter into arrangements with other competent authorities for co-ordinating consolidated supervision and co-operating with those authorities.

12. Bank to co-operate closely with other competent authorities responsible for supervising insurance undertakings and investment undertakings.

13. Bank to co-operate with other competent authorities in relation to credit institutions authorised in other Member States.

14. Bank to communicate relevant information to other competent authorities.

15. Verification of information at request of competent authority of another Member State.

16. Bank to maintain list of financial holding companies.

17. Management of financial holding companies.

18. Credit institutions whose parent undertakings are located in third country.

19. Associated enterprises, etc., to establish and maintain internal reporting, managerial and technological arrangements.

PART 3

Enforcement of these Regulations

20. Application of certain enactments.

21. Enforcement of Bank directions.

PART 4

Miscellaneous Provisions

22. Other laws not to prohibit credit institutions or associates from disclosing certain information to each other.

23. Privileged communications not required to be disclosed.

24. Bank not required to license, authorise or supervise person not credit institution.

25. Bank not to be liable for losses incurred through insolvency or default of persons subject to supervision under these Regulations.

26. Application of certain enactments, etc., to certain asset management companies.

27. Revocation of superseded Regulations.

28. Consequential amendment of Central Bank Act 1942.

SCHEDULE 1

Banking Sector Enactments and Regulations

PART 1

Enactments

PART 2

Regulations

S.I. No. 475 of 2009

EUROPEAN COMMUNITIES (CREDIT INSTITUTIONS) (CONSOLIDATED SUPERVISION) REGULATIONS 2009

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 18th December, 2009.

I, BRIAN LENIHAN, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972), and for the purposes of giving further effect to Directive 2006/48/EC 1 of 14 June 2006 of the European Parliament and of the Council, hereby make the following Regulations:

PART 1 Preliminary Provisions

Citation

1. These Regulations may be cited as the European Communities (Credit Institutions) (Consolidated Supervision) Regulations 2009.

Commencement

2. These Regulations come into operation on the day after the date on which their publication is notified in Iris Oifigiúil.

Interpretation

3. (1) In these Regulations:

“ancillary services undertaking” means an undertaking the principal activity of which consists in owning or managing property, managing data-processing services, or any other similar activity which is ancillary to the principal activity of one or more credit institutions;

“associated body”, in relation to a building society, has the meaning given by section 2(1) of the Building Societies Act 1989 (No. 17 of 1989);

“associated enterprise”, in relation to a credit institution, means—

(a) a company in respect of which the institution holds—

(i) not less than 20 per cent of the nominal value of the company’s equity share capital, or

(ii) not less than 20 per cent of the voting shares of the company, or

(b) a subsidiary company of the institution, or

(c) a holding company of the institution, or

(d) if the institution is a subsidiary company of another company—

(i) the other company, or

(ii) any other subsidiary of the other company, or

(e) an associated company (within the meaning given by the Central Bank Act 1971 (No. 24 of 1971)) of the institution, or

(f) a partnership in which the institution has an interest, and whose business is, in the opinion of the Bank, materially relevant to the supervision of the institution;

“Bank” means the Central Bank and Financial Services Authority of Ireland;

“building society” has the meaning given by section 2 of the Building Societies Act 1989 ;

“Consolidated Accounts Directive” means the Seventh Council Directive 83/349/EEC 2 of 13 June 1983 based on Article 54(3)(g) of the Treaty on consolidated accounts;

“credit institution” has the same meaning as in the European Communities (Capital Adequacy of Credit Institutions) Regulations 2006 ( S.I. No. 661 of 2006 );

“Member State” means a Member State of the European Communities and where relevant includes a contracting party to the Agreement on the European Economic Area 3 signed at Oporto on 2 May 1992 (as adjusted by the Protocol 4 signed at Brussels on 17 March 1993) as amended from time to time;

“Recast Credit Institutions Directive” means Directive 2006/48/EC 5 of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions.

(2) An expression defined in the Recast Credit Institutions Directive and used in these Regulations without definition has in these Regulations the meaning given by that Directive.

(3) A credit institution or financial holding company is taken to be established in a Member State if its head office is established in that State.

PART 2 Consolidated Supervision of Credit Institutions and Financial Holding Companies

Bank to be responsible for supervising certain credit institutions and financial holding companies on consolidated basis

4. (1) If—

(a) two or more credit institutions have as their parent the same parent financial holding company, and that financial holding company is established in the State or is an EU parent financial holding company,

(b) one or more of those credit institutions is authorised by the Bank, and

(c) one or more of those credit institutions is authorised by the competent authority of another Member State,

the Bank is responsible for supervising those credit institutions and that holding company on a consolidated basis.

(2) If—

(a) the parents of credit institutions authorised in two or more Member States comprise two or more financial holding companies that have their head offices in different Member States, and

(b) at least one of those credit institutions is established in each of those Member States, one of which is the State,

the Bank is responsible for supervising those institutions and holding companies on a consolidated basis if the credit institution that had, at the end of its immediately preceding financial year, the largest balance sheet total is one authorised by the Bank.

(3) If—

(a) two or more credit institutions authorised in Member States have the same financial holding company as their parent, and

(b) those credit institutions have not been authorised in the Member State in which the financial holding company is established,

the Bank is responsible for supervising those credit institutions and that holding company on a consolidated basis if the credit institution that had, at the end of its immediately preceding financial year, the largest balance sheet total is one authorised by the Bank.

(4) In a case to which paragraph (3) applies, the credit institution authorised by the Bank is to be regarded, for the purposes of the Recast Credit Institutions Directive, as the credit institution controlled by an EU parent financial holding company.

(5) Despite paragraphs (1) to (3), in a particular case, the Bank may agree with the competent authority of another Member State that the other competent authority is to exercise supervision on a consolidated basis if, in the opinion of the Bank and that authority, it is appropriate to do so, having regard to the credit institutions concerned and the relative importance of their activities in the State and the other Member State.

(6) In entering into an agreement under paragraph (5), the Bank and the other competent authority concerned may appoint a different competent authority to exercise supervision on a consolidated basis.

(7) The Bank and the other competent authority concerned shall not make a decision under paragraph (5) without having given the following parties an opportunity to state their opinions on that decision:

(a) the EU parent credit institution;

(b) the EU parent financial holding company;

(c) of the credit institutions concerned, the one that had, at the end of its immediately preceding financial year, the largest balance sheet total.

(8) As soon as practicable after entering into an agreement under paragraph (5), the Bank shall notify the European Commission of the agreement and its contents.

Consolidation of financial situation of financial holding company not to require Bank to play supervisory role

5. (1) Where appropriate, the Bank shall adopt such measures as are necessary to include financial holding companies in...