AI Summary of Article 11 General treatment
This article establishes the regulatory obligations for parent institutions within a Member State, mandating compliance with various Parts of the Regulation based on their consolidated situation. It stresses the importance of organisational structure and internal control mechanisms to ensure accurate data processing for consolidation, including arrangements for subsidiaries not directly covered by the Regulation.
Additionally, it delineates the terms used for parent institutions, including financial holding companies, and specifies compliance conditions for G-SII entities. The article also allows for potential sub-consolidated compliance under certain supervisory circumstances, while ensuring no adverse impact on the financial system or the internal market.
Article 11 General treatment
1. Parent institutions in a Member State shall comply, to the extent and in the manner set out in Article 18, with the obligations laid down in Parts Two, Three, Four, Seven and Seven A on the basis of their consolidated situation, with the exception of point (d) of Article 430(1). The parent undertakings and their subsidiaries that are subject to this Regulation shall set up a proper organisational structure and appropriate internal control mechanisms in order to ensure that the data required for consolidation are duly processed and forwarded. In particular, they shall ensure that subsidiaries not subject to this Regulation implement arrangements, processes and mechanisms to ensure a proper consolidation.
2. For the purpose of ensuring that the requirements of this Regulation are applied on a consolidated basis, the terms 'institution', 'parent institution in a Member State', 'EU parent institution' and 'parent undertaking', as the case may be, shall also refer to: