S.L. 371.17 Art. 2BApplication of prudential requirementsonan individual basis.

(1) The competent authority may waive the application of Article 6(1) of the CRR as follows:

(a) where both the subsidiary and the credit institution are licensed by the competent authority, the competent authority may grant the waiver to the subsidiary where it is included in the supervision on a consolidated basis of the credit institution which is the parent undertaking, and all the conditions laid down in Article 7(1) of the CRR are fulfilled, in order to ensure that the own funds are distributed adequately between the parent undertaking and the subsidiary; and

(b) where a parent institution in Malta is licensed and supervised by the competent authority and is included in the supervision on a consolidated basis, the competent authority may grant the waiver to the parent institution in Malta where all the conditions laid down in Article 7(3) of the CRR are fulfilled to ensure that own funds are distributed adequately among the parent undertaking and the subsidiaries.

(2) The competent authority may, in a Banking Rule, lay down the conditions upon which the waivers referred to above may be granted.