On December 20, 2016, the EBA published for consultation draft Guidelines on supervision of significant branches. The proposed Guidelines set out how the consolidating supervisor, the home supervisor and the host supervisor should cooperate to prudentially supervise and coordinate monitoring of significant branches requiring intensified supervision. An "intensification test" is proposed to assess which branches should be designated as significant-plus branches. Significant-plus branches will be those that are assessed as important for the firm or the group or as performing critical functions or as important for the financial stability of the host Member State. A branch that is assessed to be a significant-plus branch would be subject to intensified supervision which would entail, amongst other things, a separate branch risk assessment, regular on-the-spot checks and inspections, extensive sharing of supervisory intelligence, coordinated application of supervisory and precautionary measures and reflection of the branch in the firm's recovery planning. The consultation closes on March 20, 2017.
The consultation paper is available at: http://www.eba.europa.eu/documents/10180/1699755/ Consultation+Paper+on+Guidelines+on+supervision+of+significant+branches+%28EBA-CP-2016-24%29.pdf .
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