CP10 (Full Document) - European Banking Authority

holding company, the competent authorities shall work together, in
full consultation, to decide whether or not to grant the permission
sought and to determine the terms and conditions, if any, to which
the permission should be subject. Furthermore, within six months,
the competent authorities shall agree their determination on the
application in a single document. This document shall be provided to
the applicant.
81. The amendments to the CRD made by the EU Council have replaced
the term ‘determination’ with the clearer term ‘decision.’ It is
important to distinguish between ‘decision’ and ‘permission.’ The
decision is the final act in the approval process, as a result of the
consultation between the competent authorities. The permission is
the legal form by which this decision, determinative and legally
binding on the competent authorities, comes into force in their
respective legislation. The permission is the transposition of the full
content of the decision under the standing legal provisions of each
country.
82. A joint decision could contain group­specific or nation­specific terms
and conditions. Another type of joint decision could be the dismissal
of the application. It is also possible for permission to be granted
without any terms and conditions. The final responsibility for the
decision­making process rests with the consolidating supervisor. The
procedural law of the consolidating supervisor’s legislation
determines the proceeding and the legal form of the decision which
shall be provided to the applicant.
83. The CRD requires the document to contain the fully reasoned
decision. If the decision is made subject to certain terms and
conditions, these need to be clearly articulated in the document. It
may also cover recommendations for the possible improvement of
any imperfections revealed during the assessment process.
84. The justification of the decision should contain references to both the
legal framework, which generally stipulates the supervisor’s
assessment, and the application document, which effectively triggers
the approval process in specific cases. Although not explicitly
required by the CRD, certain issues will naturally form part of the
decision document. These might include (but are not limited to) the
following:
a. Commentary on the application, with particular regard to the
scope of the application and the scope of the models themselves;
b. Assessment of the application, in particular, with reference to the
assessment against the CRD’s requirements;
c. Milestones and recommended or mandatory remedial action,
possibly expressed as terms and conditions to the decision, as
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