French Monetary and Financial Code
In forceI. - Subject to the provisions of Article L. 517-12, the Autorité de contrôle prudentiel et de résolution shall exercise supervision on a consolidated basis of a group within the meaning of Articles L. 511-41-2 and L. 533-4-1 or, where applicable, supervision of compliance with the group capitalisation test referred to in Article 8 of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 in the following cases:
1° Where the parent undertaking of that group in the European Union or the European Economic Area is a credit institution under its supervision ;
2° Where the parent undertaking of the group is an investment firm under its control and none of its subsidiaries is a credit institution;
3° Where the parent undertaking of the group is a finance company under its control;
4° Where, within a group headed by a parent investment firm in a Member State or by an EU parent investment firm, it is the competent authority on an individual basis for the only credit institution subsidiary or for the credit institution subsidiary with the largest balance sheet total.
Where the parent undertaking is a financial holding company, an investment holding company, a parent undertaking of a finance company or a mixed financial holding company within the meaning of Articles L. 517-1, L. 517-4-3 and L. 517-4, the Autorité de contrôle prudentiel et de résolution shall exercise supervision on a consolidated basis or, where applicable, control compliance with the group capitalisation test if the group meets criteria relating to the structure, nature and location of its financial activities defined by order of the Minister responsible for the economy.
Where consolidation is required in accordance with Article 18(3) or (6) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, the Autorité de contrôle prudentiel et de résolution shall exercise supervision on a consolidated basis where it is the authority responsible for supervision on an individual basis of the credit institution with the largest balance sheet total or, where the group does not include any credit institution, of the investment firm with the largest balance sheet total.
Ia - By way of derogation from I, the Autorité de contrôle prudentiel et de résolution is the authority responsible for consolidated supervision when it supervises on an individual basis more than one credit institution within a group and the sum of the balance sheet totals of the supervised credit institutions is greater than that of the credit institutions supervised on an individual basis by any other competent authority.
By way of derogation from I, the Autorité de contrôle prudentiel et de résolution is the authority responsible for consolidated supervision where it supervises more than one investment firm on an individual basis and the sum of the balance sheet totals of the investment firms supervised is greater than that of the investment firms supervised on an individual basis by any other competent authority.
By way of derogation from I, the Autorité de contrôle prudentiel et de résolution may, by mutual agreement with the other competent authorities concerned, and where the application of the provisions set out in I would be inappropriate due to the relative importance of the activities of the credit institutions and investment firms in the group in different countries, or the need to ensure the continuity and effectiveness of supervision on a consolidated basis or compliance with the group capital adequacy test by a single competent authority:
1° Agree to exercise supervision on a consolidated basis of a group in place of the competent authority;
2° Decide not to carry out supervision itself on a consolidated basis and to leave the exercise of such supervision to another competent authority.
II. - When the Autorité de contrôle prudentiel et de résolution is responsible for supervising a group pursuant to the first paragraph of I and Ia, it exercises its powers with regard to the entities supervised on a consolidated basis throughout the European Union or the European Economic Area. In this capacity, it ensures in particular, with the competent authorities concerned, in the normal course of business and, where appropriate, in emergency situations:
1. Coordinating the collection and dissemination of relevant or essential information;
2. The planning and coordination of prudential supervisory activities. In emergency situations, such planning and coordination shall, where appropriate, be carried out with the central banks of the European System of Central Banks. This applies in particular in the event of negative developments in the situation of financial institutions or markets.
III. - The supervisory activities referred to in 2 of II include the exceptional measures referred to in Articles L. 511-41-3 and L. 612-33, the authorisation to use an advanced approach within the meaning of Article 312(2) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013, the preparation of joint assessments, the implementation of contingency plans and the communication of information to the public.
IV. - The Autorité de contrôle prudentiel et de résolution may, where it supervises a group on a consolidated basis, agree to supervise a subsidiary established in another Member State of the European Union or another State party to the Agreement on the European Economic Area, at the request of the authority responsible for supervising that subsidiary.
