AI Summary of Article 8 Derogation from the application of liquidity requirements on an individual basis
The competent authorities have the discretion to waive the application of Part Six to an institution and its subsidiaries, allowing for the supervision of a single liquidity sub-group, provided that specific conditions are met. These conditions include compliance with liquidity obligations, oversight of liquidity and funding positions, contractual arrangements for fund movement, and the absence of legal impediments.
When institutions are authorised across multiple Member States, the waivers require collaboration among relevant competent authorities. Additionally, provisions apply to entities within the same institutional protection scheme, enabling flexibility while ensuring regulatory compliance across liquidity management frameworks.
Article 8 Derogation from the application of liquidity requirements on an individual basis
1. The competent authorities may waive in full or in part the application of Part Six to an institution and to all or some of its subsidiaries in the Union and supervise them as a single liquidity sub-group so long as they fulfil all of the following conditions:
(a) the parent institution on a consolidated basis or a subsidiary institution on a sub-consolidated basis complies with the obligations laid down in Part Six;
(b) the parent institution on a consolidated basis or the subsidiary institution on a sub-consolidated basis monitors and has oversight at all times over the liquidity positions of all institutions within the group or sub-group, that are subject to the waiver, monitors and has oversight at all times over the funding positions of all institutions within the group or sub-group where the net stable funding ratio (NSFR) requirement set out in Title IV of Part Six is waived, and ensures a sufficient level of liquidity, and of stable funding where the NSFR requirement set out in Title IV of Part Six is waived, for all of those institutions;