Application of requirements on a consolidated basis to a stand-alone bank in a Member State owned by a financial holding institution in another Member State and by a third-country bank: submission of FINREP on a consolidated basis.

Article 11, paragraph 2, first subparagraph of Regulation (EU) No 575/2013 (CRR) states that: I nstitutions controlled by a parent financial holding company or a parent mixed financial holding company in a Member State shall comply, to the extent and in the manner prescribed in Article 18, with the obligations laid down in Parts Two to Four and Part Seven on the basis of the consolidated situation of that financial holding company or mixed financial holding company. The obligations laid down in Part two to Four include, among the others, reporting on own funds requirements and financial information (specifically Article 99 of CRR). Articles from 9 to 11 of Commission Implementing Regulation (EU) No 680/2014, as amended (ITS on supervisory reporting), determines the format and frequency of reporting financial information (FinRep).   Against this background, a stand-alone institution controlled by a parent financial holding established in another Member State and subject to Article 99 of CRR shall report CoRep and FinRep information on the basis of the consolidated situation of the controlling parent financial holding. Reporting shall be in accordance with the ITS on supervisory reporting.   In the specific instance:   The perimeter of consolidation of FHC X shall include bank A, and bank B if not subject  to Article 19 of CRR; and Financial reporting shall be submitted according to international accounting standards considering that the controlling parent financial holding prepare its consolidated accounts in conformity with the IAS/IFRS.   In other cases, where the parent company does not prepare its consolidated accounts in conformity with the IAS/IFRS, the competent authority shall consult EBA on the extension of the reporting requirements of financial information on a consolidated basis  according to Article 99(6) of CRR.