Commission Implementing Regulation (EU) 2016/100 of 16 October 2015 laying down implementing technical standards specifying the joint decision process with regard to the application for certain prudential permissions pursuant to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance)

CHAPTER I

SUBJECT MATTER AND DEFINITIONS

Article 1

Subject matter

This Regulation specifies the joint decision process referred to in Article 20(1), point (a), of Regulation (EU) No 575/2013 with regard to the applications for the permissions referred to in Article 143(1), Article 151(9), Article 283, and Article 325az, or Article 363 in the version in force on 8 July 2024, of that Regulation to facilitate joint decisions.

Article 2

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(1) ‘relevant competent authority’ means a competent authority, other than the consolidating supervisor, which is responsible for the supervision of subsidiaries, which participate in the submission of the joint application, of an EU parent institution or an EU parent financial holding company or an EU parent mixed financial holding company in a Member State and which is required to reach a joint decision in accordance with Article 20(2) of Regulation (EU) No 575/2013 on the application referred to in point (a) of Article 20(1) of that Regulation;

(2) ‘applicant’ means an EU parent institution and its subsidiaries or the subsidiaries of an EU parent financial holding company or of an EU parent mixed financial holding company, which submit an application;

(3) ‘assessment report’ means a report containing the assessment of an application in accordance with Article 6.

CHAPTER II

JOINT DECISION PROCESS

Article 3

Involvement of third country supervisory authorities in the assessment process

The consolidating supervisor may decide to involve third country supervisory authorities which participate in the supervisory college pursuant to Article 3(3) of Commission Delegated Regulation (EU) 2025/791 (¹) in the assessment of applications submitted pursuant to Article 20(1), point (a), of Regulation (EU) No 575/2013 where the applicant operates in that third country and intends to apply the methodologies concerned to exposures in that third country. In that case, both the consolidating supervisor and the third country supervisory authorities shall agree on the scope of involvement of those authorities for the following purposes:

(a) the provision by the third country supervisory authorities to the consolidating supervisor of their contribution to the assessment report prepared by the consolidating supervisor;

(b) the addition as annexes of the contributions referred to in point (a) of this paragraph to the assessment report prepared by the consolidating supervisor.

Article 4

Assessment of the completeness of the application

Article 5

Planning of the steps of the joint decision process

The timetable shall include the date of receipt of the complete application pursuant to Article 4(9) and at least the following steps:

(a) agreement on the timetable and the division of work between the consolidating supervisor and the relevant competent authorities;

(b) agreement on the scope of involvement of third country supervisory authorities pursuant to Article 3;

(c) dialogue between the consolidating supervisor, the relevant competent authorities and the applicant on the details of the application, where this is deemed as necessary by the consolidating supervisor and the relevant competent authorities;

(d) submission of the assessment reports from the relevant competent authorities to the consolidating supervisor pursuant to Article 6(2);

(e) dialogue on the assessment reports between the consolidating supervisor and the relevant competent authorities pursuant to Article 7(2);

(f) preparation and submission of the draft joint decision from the consolidating supervisor to the relevant competent authorities pursuant paragraphs 3 and 4 of Article 7;

(g) consultation on the draft joint decision with the applicant, where required by the legislation of a Member State;

(h) dialogue between the consolidating supervisor and the relevant competent authorities on the draft joint decision pursuant to Article 7(4);

(i) submission of the draft joint decision from the consolidating supervisor to the relevant competent authorities for agreement and reaching of the joint decision pursuant to Article 8;

(j) communication of the joint decision to the applicant pursuant to Article 9.

The timetable shall fulfil all of the following requirements:

(a) it shall be proportionate to the scope of the application;

(b) it shall reflect the scope and complexity of each task performed by the relevant competent authorities and the consolidating supervisor, as well as the complexity of the institutions of the group to which the joint decision is to apply;

(c) it shall take into account, as far as possible, the other activities undertaken by the consolidating supervisor and the relevant competent authorities under the examination programme of the supervisory college referred to in Article 16 of Delegated Regulation (EU) 2025/791.

The division of work shall reflect the following:

(a) the scope and complexity of the application;

(b) the materiality of the scope of the application for each institution;

(c) the type and location of the exposures or risks to which the application relates;

(d) the extent to which exposures or risks assumed in a particular jurisdiction contribute to the materiality of changes or extensions of the models when assessed at the consolidated level;

(e) the ability of the consolidating supervisor and each relevant competent authority to execute the necessary tasks to perform an assessment and give a fully reasoned opinion.

For the purposes of point (c) of the first subparagraph, where the geographical location of exposures or risks is different from the location at which the exposures or risks are managed, credited or traded, the division of work shall establish separate responsibilities for the competent authorities of the Member State in which the exposures or risks are located, and for the competent authorities of the Member State in which those exposures or risks are managed, credited or traded.

Article 6

Preparation of the assessment reports

Each assessment report shall include at least all of the following:

(a) an opinion on whether or not the permission requested should be granted, based on the requirements set out in Article 143(1), Article 151(9), Article 283, and Article 325az, or Article 363 in the version in force on 8 July 2024, of Regulation (EU) No 575/2013, together with the reasoning to support that opinion;

(b) terms and conditions, if any, to which such permission should be subject, including corresponding reasoning and a timetable for their fulfilment;

(c) the assessments relating to the matters which competent authorities are required to assess in accordance with the requirements set out in Articles 143, 144, 151, 283, and 325az, or Article 363 in the version in force on 8 July 2024, of Regulation (EU) No 575/2013;

(d) recommendations, if any, on remedying deficiencies revealed while evaluating the application and reaching a joint decision on the application.

Article 7

Preparation of the draft joint decision

The consolidating supervisor shall prepare a fully reasoned draft joint decision. The draft joint decision shall set out each of the following items:

(a) the names of the consolidating supervisor and relevant competent authorities involved in the draft joint decision;

(b) the name of the group of institutions and a list of all institutions within the group to which the draft joint decision relates and applies, together with details of the scope of application of the draft joint decision;

(c) the references to the applicable Union and national law relating to the preparation, finalisation and application of the draft joint decision;

(d) the date of the draft joint decision and of any relevant update thereto in case of material extensions or changes as referred to in Article 13;

(e) an opinion on granting the permission requested based on the assessment reports referred to in Article 6;

(f) where the opinion referred to in point (e) is to grant the permission requested, the date from which that permission is granted;

(g) a brief description of the results of the assessments for each institution within the group;

(h) any recommendations on remedying any deficiencies revealed while evaluating the application and reaching a joint decision on the application;

(i) any terms and conditions to be met by the applicant, including corresponding reasoning, before using the permission referred to in Article 143(1), Article 151(9), Article 283, and Article 325az, or Article 363 in the version in force on 8 July 2024, of Regulation (EU) No 575/2013, where applicable;

(j) the reference date to which points (g), (h) and (i) relate;

(k) the timeline for fulfilling the terms and conditions referred to in point (i) or for addressing the recommendations referred to in point (h), where applicable;

(l) the timeline for implementing the draft joint decision into respective national permissions, where applicable.

Article 8

Reaching of the joint decision

Article 9

Communication of the joint decision

CHAPTER III

DISAGREEMENTS AND DECISIONS TAKEN IN THE ABSENCE OF A JOINT DECISION

Article 10

Decision process in the absence of joint decision

Where no joint decision is reached within the time period referred to in point a of Article 20(2) of Regulation (EU) No 575/2013, the decision of the consolidating supervisor referred to in the first subparagraph of Article 20(4) of that Regulation shall be evidenced in writing and shall be taken by the latest of the following dates:

(a) one month after the expiry of the time period referred to in point (a) of Article 20(2) of Regulation (EU) No 575/2013, where none of the competent authorities concerned has referred the matter to EBA in accordance with the fourth subparagraph of Article 20(4) of that Regulation;

(b) one month after the provision of any advice by the EBA pursuant to paragraph 1 of this Article where the consolidating supervisor has consulted the EBA within the time period referred to in point (a) of Article 20(2) of Regulation (EU) No 575/2013;

(c) one month after any decision taken by the EBA in accordance with the fourth subparagraph of Article 20(4) of Regulation (EU) No 575/2013.

Article 11

Drafting of the decisions taken in the absence of a joint decision

The decision taken by the consolidating supervisor in the absence of a joint decision shall include all the items listed in Article 7(3), as appropriate.

Article 12

Communication of the decisions taken in the absence of joint decision

The consolidating supervisor shall communicate its decision to the applicant and to the relevant competent authorities without delay in accordance with the third subparagraph of Article 20(4) of Regulation (EU) No 575/2013.

CHAPTER IV

UPDATE OF DECISIONS IN CASE OF MATERIAL MODEL EXTENSIONS OR CHANGES AND ENTRY INTO FORCE

Article 13

Material model extensions or changes

The timetable of the joint decision process for granting permission on material extensions and changes shall fulfil all of the following requirements:

(a) it shall be proportionate to the scope of the material model extensions or changes;

(b) it shall be proportionate to the tasks and division of the work between the consolidating supervisor and the relevant competent authorities responsible for the supervision of institutions that are affected by these material model extensions or changes.

For the purposes of point (b) of the first subparagraph, where an application concerns a material model extension or change which affects institutions established in only one Member State, the timing allocated to the consolidating supervisor in all aspects of the process under Articles 3 to 9 shall be kept to a minimum.

Article 14

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.