Notification of stakeholders in the context of intra-group financial support

The duty of notification and transmission under Article 25 (1) and (6) refers to an intra-group financial support (IGFS) agreement within the meaning of the IGFS Chapter.  The different wording that has been used, entities versus institution, stems from Article 19(1) of the BRRD and refers to the fact that, the group entity providing financial support does not necessarily have to be an institution. According to Article 19(1) of the BRRD it may be "a parent institution in a Member State, a Union parent institution, or an entity referred to in point (c) or (d) of Article 1(1) and its subsidiaries in other Member States or third countries that are institutions or financial institutions covered by the consolidated supervision of the parent undertaking".                                                                                      The "subsidiaries" mentioned in Article 19(1) may also be those of "a parent institution in a Member State" and "a Union parent institution". This broad understanding of "subsidiary" is also suggested by Article 19(5)(a).Under Article 19(1), the subsidiaries providing financial support need to be "institutions or financial institutions". Therefore, whenever in the IGFS Chapter the providing entity is called "[group] entity" or "institution" it should be read: a parent institution in a Member State; or                                              a Union parent institution; or                                                                            an entity referred to in point (c) or (d) of Article 1(1); or                       a subsidiary of any of the aforementioned parent undertakings that is an institution or a financial institution. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) 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.