X1PART ONEGENERAL PROVISIONS

Annotations:
Editorial Information

TITLE IILEVEL OF APPLICATION OF REQUIREMENTS

CHAPTER 2Prudential consolidation

Section 3Scope of prudential consolidation

Article 19 Entities excluded from the scope of prudential consolidation

1

An institution, a financial institution or an ancillary services undertaking which is a subsidiary or an undertaking in which a participation is held, need not to be included in the consolidation where the total amount of assets and off-balance sheet items of the undertaking concerned is less than the smaller of the following two amounts:

a

EUR 10 million;

b

1 % of the total amount of assets and off-balance sheet items of the parent undertaking or the undertaking that holds the participation.

2

F1The consolidating supervisor may on a case-by-case basis decide in the following cases that an institution, financial institution or ancillary services undertaking which is a subsidiary or in which a participation is held need not be included in the consolidation:

a

where the undertaking concerned is situated in a third country where there are legal impediments to the transfer of the necessary information;

b

where the undertaking concerned is of negligible interest only with respect to the objectives of monitoring institutions;

X2c

where, in the opinion of F2the consolidating supervisor, the consolidation of the financial situation of the undertaking concerned would be inappropriate or misleading as far as the objectives of the supervision of institutions are concerned.

3

Where, in the cases referred to in paragraph 1 and point (b) of paragraph 2, several undertakings meet the criteria set out therein, they shall nevertheless be included in the consolidation where collectively they are of non-negligible interest with respect to the specified objectives.