Section 7: Parent companies having their registered office outside the European Economic Area

Where regulated entities belonging to a group carrying on activities in both the banking and investment services sector and the insurance sector have as their parent undertaking a company whose registered office is in a State which is neither a Member State nor a party to the Agreement on the European Economic Area, the Autorité de contrôle prudentiel et de résolution, where it fulfils the conditions laid down in Article L. 633-2 to be a coordinator, verifies, on its own initiative or at the request of the parent undertaking or a regulated entity authorised in a Member State or another State party to the Agreement on the European Economic Area, that these regulated entities are subject, by a competent authority of the third country, to supplementary supervision equivalent to that provided for in this sub-section. That authority shall consult the competent authorities concerned. If a competent authority concerned refers the matter to the European Banking Authority or the European Insurance and Occupational Pensions Authority, the Autorité de contrôle prudentiel et de résolution shall suspend its decision and take a decision in accordance with the decision taken by the authority referred to.

In the absence of equivalent supplementary supervision, the competent authorities concerned shall appoint a coordinator and apply the provisions on supplementary supervision to these regulated entities by analogy.

In order to ensure the supplementary supervision of regulated entities in a financial conglomerate, the parent undertaking of which has its head office in a State which is not a party to the Agreement on the European Economic Area, the competent authorities concerned may also apply other methods which they consider appropriate. These methods must have been validated by the Autorité de contrôle prudentiel et de résolution, where it fulfils the conditions laid down in Article L. 633-2 for being a coordinator, after consultation with the other competent authorities concerned. The competent authorities concerned may in particular require the establishment of a mixed financial holding company which has its head office in a Member State or in another State party to the Agreement on the European Economic Area and apply the provisions on supplementary supervision to the regulated entities of the financial conglomerate headed by this mixed financial holding company. The methods referred to in this paragraph shall be notified to the competent authorities concerned and to the European Commission.