French Monetary and Financial Code
In forceI. - When, as the authority responsible for supervision on a consolidated basis, the Autorité de contrôle prudentiel et de résolution receives an application for authorisation to use an internal risk assessment approach as referred to in Article L. 511-41 on behalf of several credit institutions or investment firms belonging to the same group and established in at least two Member States of the European Union or parties to the Agreement on the European Economic Area, it shall consult with the authorities concerned with a view to reaching a joint decision.
II. - The Autorité de contrôle prudentiel et de résolution, as the authority responsible for supervision on a consolidated basis, and the competent authorities within the meaning of Article 4(1)(40) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 shall consult each other with a view to reaching a joint decision, within a period set by decree of the Conseil d'Etat, on:
1° The adequacy of the level of own funds held by the group in relation to its financial position and risk profile ;
2° The level of additional capital requirements referred to in II of Article L. 511-41-3 for the group and each of its subsidiaries;
3° The recommendations on additional capital referred to in IIa of Article L. 511-41-3 for the group and each of its subsidiaries.
III. - The Autorité de contrôle prudentiel et de résolution, as the authority responsible for supervision on a consolidated basis, and the competent authorities shall consult each other with a view to reaching, within a period set by decree in the Conseil d'Etat, a joint decision on the measures to be taken in the event of any question or finding of significant importance concerning the supervision of liquidity. These measures may relate to the adequacy of the group's organisation and treatment of liquidity risk and to the need for liquidity requirements specific to the institution in accordance with Article L. 511-41-3.
IV. - In the absence of a joint decision as referred to in I, II or III, the Autorité de contrôle prudentiel et de résolution shall make its decision alone on a consolidated basis. In the event that one of the competent authorities concerned has referred the matter to the European Banking Authority in accordance with Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010, within the prescribed time limits, the Autorité de contrôle prudentiel et de résolution shall suspend its decision on a consolidated basis pending the decision of the European Banking Authority. The Autorité de contrôle prudentiel et de résolution will make its decision in accordance with the decision of the European Banking Authority.
