Commission Delegated Regulation (EU) 2023/1117 of 12 January 2023 supplementing Directive (EU) 2019/2034 of the European Parliament and of the Council with regard to regulatory technical standards specifying requirements for the type and nature of the information to be exchanged by competent authorities of home and host Member States (Text with EEA relevance)

Commission Delegated Regulation (EU) 2023/1117 as regards the type and nature of information that shall be exchanged between competent authorities of home and host member states for effective supervision of investment firms conducting business cross-border was published in the Official Journal (OJ) of the EU.
###### According to the regulation, the following information must be provided by the home state authority to the host state authority:
1. information as to the management and ownership structure of investment firms operating through a branch in a host country. In case a passporting firm is NOT considered a small, non-interconnected firm, additional information needs to be provided (shareholder information, assignment of responsibilities in the management board).
2. information concerning the track record of a firm as regards compliance
– with own funds requirements;
– with concentration risk and liquidity requirements;
– with accounting standards and procedures; and
– with internal control requirements, including internal audit and risk management control obligations.
3. information about any other issues that may have arisen in the past and that may be necessary to effectively assess the risks of a passporting firm in the host state.
4. information on any determinations of non-compliance that may have been made by the home state authority.
5. information on any ongoing or past supervisory measures taken by the home state authority, including any sanctions imposed on the firm.
6. information about the arrangement of emergency measures concerning a particular firm.
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As far as information to be communicated by the host state authority to the home state authority is concerned, the regulation requires that any compliance issues encountered with a firm or other types of risks that may have surfaced should be communicated.
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Finally, the new regulation stipulates that if an investment firm operating in a host member state and is part of a group where the parent AND the main office of the firm are located in the same home member state and the competent authority of the investment firm’s home state is also the group supervisor, the information shall be presented by the home state regulator to the host state regulator on a consolidated basis.