Chapter III: Supplementary supervision of financial conglomerates

The cooperation between competent authorities provided for in Articles L. 633-5 and L. 633-6 is carried out under the following conditions:

1° Without prejudice to their respective responsibilities, the competent authorities and the coordinator shall communicate, on their own initiative, any essential information or, upon request, any useful information enabling these authorities to exercise their prudential functions, in the context of the supplementary supervision of financial conglomerates.

Such information shall relate in particular to

a) the identification of the legal structure of the group, its system of governance and its organisational structure, including all regulated entities, unregulated subsidiaries and branches of significant importance belonging to the financial conglomerate, the holders of qualifying holdings at the level of the ultimate parent undertaking, as well as the competent authorities of these regulated entities ;

b) The strategies of the financial conglomerate;

c) the financial situation of the financial conglomerate, in particular as regards capital adequacy, intra-group transactions, risk concentration and profitability;

d) The main shareholders and managers;

e) The risk management system and the internal control system;

f) Procedures for collecting and verifying information from entities in the financial conglomerate;

g) Any difficulties encountered by these entities;

h) the main sanctions and exceptional measures taken against them by the competent authorities.

2° Without prejudice to their respective responsibilities, before taking a decision that may fall within the prudential functions exercised by other competent authorities, the competent authorities concerned shall consult each other and exchange information on the structural changes in the shareholder structure, organisation or management of the regulated entities in a financial conglomerate that require the approval or authorisation of the competent authorities, as well as on the main sanctions and exceptional measures envisaged by the competent authorities.

In urgent cases or where such consultation would jeopardise the effectiveness of the decision, a competent authority may decide not to consult its counterparts, provided that it informs them of this decision without delay;

3° Where information from regulated or unregulated entities belonging to a financial conglomerate which may be relevant to supplementary supervision has already been communicated to a competent authority in application of the sectoral rules, the Autorité de contrôle prudentiel et de résolution or, where applicable, the Autorité des marchés financiers, as coordinator, may contact it to obtain such information.