The first subparagraphs of paragraphs 1 and 2 in Article 13 of Regulation (EU) No 575/2013 (CRR) require EU parent institutions and institutions controlled by an EU parent financial holding company or an EU parent mixed financial holding company to comply with the disclosure obligations laid down in Part Eight of CRR on a consolidated basis.

Article 6(3) of CRR exempts parent institutions, subsidiaries, and every institution included in the consolidation pursuant to Article 18 of CRR from the requirement to comply with the disclosure obligations laid down in Part Eight of CRR on an individual basis.

Nevertheless, the second subparagraphs of paragraphs 1 and 2 in Article 13 of CRR require significant subsidiaries of EU parent institutions, EU parent financial holding companies and EU parent mixed financial holding companies, and those subsidiaries which are of material significance for their local markets to disclose the information specified in Articles 437, 438, 440, 442, 450, 451 and 453 of CRR on an individual or sub-consolidated basis, where applicable. See Q&A 759 for the location of these disclosures.

The provisions set out in Articles 6 and 13 of CRR imply that institutions belonging to a banking group subject to disclosure requirements on a consolidated basis are not subject to the same obligations on an individual basis as those applicable to institutions which are not supervised on a consolidated basis. Requiring subsidiaries of a banking group subject to consolidated supervision to disclose the same prudential information at individual level would not contribute significantly to market discipline, given the already-disclosed prudential information at group level.

Article 433 of the CRR sets out the rules governing the frequency of disclosure. This Article requires any institutions, including those belonging to a banking group subject to consolidated supervision, to publish the disclosures at least on an annual basis and in conjunction with the date of publication of the financial statements. Notwithstanding this, institutions may have to publish some or all disclosures more frequently than annually in the light of the relevant characteristics of their business. EBA published guidelines inter alia on the frequency of disclosure on 23 December 2014 (https://www.eba.europa.eu/documents/10180/937948/EBA+GL+2014+14+%28Guidelines+on+disclosure%29.pdf)

The frequency rules set out in Article 433 of CRR apply in the same manner to the following institutions:

- Institutions which are neither a parent undertaking nor a subsidiary and which are not included in a consolidation pursuant to Article 18 of CRR, and that are required to disclose the information laid down in Part Eight of CRR on an individual basis pursuant to Article 6(1) of CRR;

- EU parent institutions and institutions controlled by EU parent financial holding companies or EU parent mixed financial holding companies(*) which are required to disclose the information laid down in Part Eight of CRR on a consolidated basis pursuant to the first subparagraphs of paragraphs 1 and 2 in Article 13 of CRR;

- Significant subsidiaries of EU parent institutions, EU parent financial holding companies and EU parent mixed holding companies, and those subsidiaries which are of material significance for their local markets, which are required to disclose the information specified in Articles 437, 438, 440, 442, 450, 451 and 453 of CRR on an individual or sub-consolidated basis pursuant the second subparagraphs of paragraphs 1 and 2 of Article 13 of CRR.

(*) Q&A 1502 - under review at the time of publication of the present Q&A - is to provide guidance for determining which institution among several that are controlled by the same EU parent financial holding company or the same EU parent mixed financial holding company is required to comply with the disclosure requirements on a consolidated basis.

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) has 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.