Application of requirements on a sub-consolidated basis

Institutions may be required to comply with the prudential requirements laid down in CRR on a sub-consolidated basis in the following cases: Ø       where Member States adopt national laws requiring the structural separation of activities within a banking group Ø       when it is justified for supervisory purposes by the specificities of the risk or of the capital structure of an institution Cases for supervisory purposes are not limited to those specified in Article 22 or Article 11 (1) to (3) of Regulation (EU) No 575/2013. The application on a sub-consolidated basis is without prejudice to application of the requirements on consolidated and individual bases (unless waivers apply). DISCLAIMER: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate–General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.