Cooperation in relation to the authorisation/ qualifying holdings assessments I assessment of directors The Authorities will notify each other, without delay, of applications for approval to establish cross-border establishments or make acquisitions. Upon request, the Authorities will inform each other whether the applicant is in substantial compliance with applicable laws and regulations and whether it may be expected, in light of its administrative structure and internal controls where relevant, to manage the supervised entity or the cross-border establishment in an orderly manner. The Authorities will also, upon request, assist each other with verifying or supplementing any information submitted by the applicant. Upon request, the Authorities will inform each other about the nature of its supervisory system and the extent to which it will conduct supervision, including consolidated or group wide, over the applicant. Upon request, and where available, the Authorities will supply each other with information on proposed acquirers. To the extent permitted by their respective laws and regulations, the Authorities will share information on the fitness and propriety of prospective directors and managers of a cross border establishment. The communication of such personal data is subjected to the EU data protection law and in particular to its rules on transfers of personal data. Therefore, the communication of such personal data can only be pursued upon signature of the clauses attached to this MoU and under the terms of the said framework.
Cooperation in relation to the ongoing supervision
Cooperation in relation to internal models or advanced approaches (internal models) The Authorities agree that cooperation is useful in achieving a deep understanding of the implementation of the internal models in the credit institutions that fall under their supervision. In this regards, the Authorities will in particular endeavour to exchange views and information: (a) on the role that these tools have in the supervised entity's decision making process; (b) on the data and IT framework set up to ensure that all relevant information is properly reflected into the internal models; and (c) on the internal controls and internal governance that apply at individual and consolidated level. The Authorities agree that a common decision with respect to the authorisation request is needed for guaranteeing a calculation of the minimum capital requirements at the consolidated level that is consistent with those obtained at the individual level. In order to reach such a common decision, the Authorities will provide each other, in due time, with all the relevant information, including the supervised entities' plans for implementing the internal models for regulatory purposes. The Authorities agree that initial identification of the tasks to be performed during the assessment and judicious division of the work involved in carrying out these tasks guarantee an effective and efficient way to reach a common decision on the request for authorisation. During the assessment, both -Authorities will keep each other informed, in a timely manner, of the results of the investigation and the main deficiencies identified. Where an on-site inspection is needed to perform the internal-models-related assessment, the Authorities will apply Article 10. The final common decision will be agreed upon by the Authorities and communicated to the concerned supervised entity at the same time by each Authority. The Authorities agree that close cooperation is needed to guarantee proper implementation of the recommendations provided in the final common decision. The Authorities will use their best endeavours to share the work involved in reviewing the actions taken by the supervised entity in order to address these recommendations. The information mentioned under this Article will be given insofar as possible and subject to applicable laws and regulations, and in accordance with the principles set out in this Memorandum of Understanding.
