How does CySEC cooperate on cross-border resolution and with third countries?

A cross-border group cannot be resolved by one country alone. Law 20(I)/2016 requires CySEC to cooperate with the resolution authority and other authorities on decisions that affect other Member States, and much of that happens in resolution colleges set up by the group-level resolution authority. As consolidating supervisor and as competent authority, CySEC has two tasks there, where appropriate. It shares the information needed to develop group resolution plans, to apply preparatory and preventative powers to groups, and for group resolution itself. And it coordinates how group resolution strategies and schemes are communicated to the public.

CySEC sits in every college where the resolution authority also sits, and may bring a CBC representative with it. This follows the BRRD rule that a competent authority which is not a central bank may bring along a central bank representative. For CySEC's general cooperation duties, see What must CySEC do as supervisor, and how does it work with other authorities?

CySEC may conclude memoranda of cooperation with third-country authorities, in line with the EBA's framework arrangements, in four cases. With the country where a parent undertaking is established, when its Union subsidiaries are in at least two Member States. With the country where a third-country institution is established, when it has branches in at least two Member States. With the countries where subsidiaries are established, when an EU parent or holding company that has a subsidiary or a significant branch in another Member State also owns subsidiaries outside the EU. And with the countries where branches are located, when an institution that has a subsidiary or a significant branch in another Member State also has branches of its own outside the EU.

The exam material words the fourth case as if the subsidiary or significant branch had set up the third-country branches. In the law, unchanged since 18 March 2016, the branches are the institution's own, and the memorandum is with the authorities where they are located.

The arrangements cover information sharing and cooperation on resolution matters only: developing resolution plans, assessing resolvability, using powers to tackle or remove impediments to resolvability, applying early intervention measures, and applying resolution tools and powers. CySEC may also conclude bilateral or multilateral arrangements under the EBA Regulation, and it notifies the EBA of the cooperation arrangements it concludes; notification follows the arrangement rather than being a condition for it.

CySEC may exchange confidential information, including recovery plans, with third-country authorities only if two conditions are met. First, those authorities are bound by professional secrecy requirements and standards that all the authorities concerned consider at least equivalent to those under EU law, and personal data is handled under the applicable data protection law. Second, the information is necessary for them to carry out resolution functions under national law similar to Law 20(I)/2016; it may be used for nothing else.

Information that came from another Member State is passed on only if the authority where it originated agrees, and only for the purposes that authority allows. Under the BRRD, confidential information here means information that Union law makes subject to confidentiality requirements.