Transfer of responsibility for the supervision of institutional groups, financial holding groups, mixed financial holding groups, and institutions belonging to a group

(1) The Federal Institute may refrain from supervising an institutional group, financial holding group, or mixed financial holding group within the meaning of section 10a, and may revocably transfer supervision on a consolidated basis to another competent authority within the European Economic Area,
1. where supervision by the Federal Institute would be inappropriate having regard to the institutions concerned and the significance of their business activity in the other state, or
2. in order to ensure ongoing monitoring on a consolidated basis by the same competent authority, where institutional groups, financial holding groups, or mixed financial holding groups are supervised on a consolidated basis by the competent authority of the other state of the European Economic Area under Regulation (EU) No 575/2013. In these cases, the Federal Institute revocably exempts the parent undertaking from the provisions of this Act concerning supervision on a consolidated basis. Before the exemption and the transfer of responsibility, the parent undertaking must be heard. The European Commission and the European Banking Authority must be informed without delay of the conclusion and content of corresponding agreements.
(2) Where the Federal Institute, on the basis of an agreement with a competent authority within the European Economic Area, assumes supervision on a consolidated basis of an institutional group, a financial holding group, or a mixed financial holding group, it may designate an institution of the group with its registered office in Germany as the parent undertaking. Section 10a applies correspondingly.
(3) The Federal Institute may, under Article 28 of Regulation (EU) No 1093/2010, revocably transfer responsibility for supervising an institution for whose licensing it is responsible to another competent authority within the European Economic Area, where the institution is a subsidiary undertaking of an institution for whose licensing and supervision that competent authority is responsible under Regulation (EU) No 575/2013. Before the transfer of responsibility, that institution must be heard. The European Banking Authority must be informed of the existence and content of these agreements.