Parent undertakings with their registered office in a third country

(1) Where CRR credit institutions and securities trading undertakings with their registered office domestically, that are subsidiary undertakings of an institution, a financial holding company, or a mixed financial holding company with its registered office in a third country, are not subject to supervision on a consolidated basis in that third country under the provisions of this Act, the supervisory authority assesses whether supervision of the CRR credit institution or the securities trading undertaking on a consolidated basis by the competent bodies of the third country is equivalent to supervision under the provisions of section 10a of this Act and the requirements of Part 1, Title II, Chapter 2, of Regulation (EU) No 575/2013. The supervisory authority carries out this assessment at the request of the parent undertaking, of an undertaking authorised in the European Economic Area, or of its own motion. Before deciding on equivalence, the supervisory authority hears the other competent bodies and the European Supervisory Authority.
(2) Where the assessment under subsection (1) results in a finding that supervision on a consolidated basis in the third country is not equivalent, the supervisory authority may designate the group of undertakings resident domestically as an institutional group, financial holding group, or mixed financial holding group, and an institution as the superordinate undertaking. The provisions of section 10a of this Act and of Part 1, Title II, Chapter 2, of Regulation (EU) No 575/2013 apply correspondingly.
(3) In an individual case, the Federal Institute may, by way of derogation from subsection (2) and section 15(2) of the Financial Conglomerates Supervision Act, provide for appropriate supervision on a consolidated basis in another manner. In particular, it may require that a financial holding company or mixed financial holding company be established with its registered office domestically or in another state of the European Economic Area, to which the provisions of this Act on supervision on a consolidated basis apply correspondingly.
(4) In the cases under subsection (3), the Federal Institute informs the competent bodies concerned in the European Economic Area of the approach chosen. The duties under section 7a(2), point 3, and section 7b(3), point 2, remain unaffected.