Key Benefits:
Mr. President of the Republic,
This order is made on the basis of theArticle 11 of Act No. 2014-1 of 2 January 2014 empowering the Government to simplify and secure the lives of businesses. It proposes the adoption of measures relevant to the law:
― necessary for the transposition of the so-called "CRD IV" (1) directive and for the compliance of French legislation with the so-called "CRR" European regulation (2);
― enabling financing companies to apply, with the necessary modifications, the "CRD IV" directive;
― necessary to transpose the so-called "Ficod" directive on the complementary monitoring of financial conglomerates (3).
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The "CRD IV package" – the so-called "CRD IV" directive itself and the "CRR" European regulation – was adopted on June 26, 2013 for an entry into force on January 1, 2014. This is the European decline in international agreements called "Basel III" to strengthen and harmonize requirements in equity and introduce liquidity standards for the banking sector. It also includes several measures, not directly related to the "Basel III" agreements, to harmonize European practices, including accreditation, governance, including compensation, supervision and sanctions policies.
The "CRD IV" package applies to credit institutions and investment companies other than portfolio management companies and includes:
– a directive (the "CRD IV" directive) focused on matters of accreditation, governance, supervision, complementary requirements of equity ("pillar 2"), equity cushions, consolidated monitoring, sanctions and information exchange; and
– a direct application regulation (the "RRC" regulations) that contains all provisions relating to management standards ("P pillar 1") and financial transparency ("P pillar 3").
Certain provisions for the transposition of the "CRD IV" directive had been partially anticipated by the Act No. 2013-672 of 26 July 2013 separation and regulation of banking activities:
― the publication of certain country information by country ― nature of activities, net banking product, turnover, workforce, profit or loss before tax, amount of tax on profits, public subsidies received;
― certain aspects of the governance component of the "CRD IV" directive, including the obligation for credit institutions and investment companies to notify the Authority of prudential control and resolution of the appointment and renewal of the directors and members of the board of directors with possibility for the Authority to oppose it;
- the principle of macro-prudential additional capital cushions with the establishment of the High Financial Stability Board; and
― the ceiling on the remuneration of persons in charge of effective management and categories of personnel who take risks.
This Order concludes the transposition of the "CRD IV" directive, including:
a strengthening of governance rules including:
- a clearer and clear division of risk monitoring responsibilities between (i) the Board of Directors, the Supervisory Board or any other body performing equivalent oversight functions, (ii) the Director General, the Executive Director or the Director General and (iii) the risk management function;
― the dissociation of the functions of chair of the board of directors and general manager in credit institutions, investment companies and financing companies, the Authority for prudential and resolution control, however, which may authorize the accumulation of these functions on the basis of the entity's request;
– a limitation of the accumulated functions for entities of significant importance, in which only one function of general director or equivalent, and two functions of member of the board of directors or equivalent, or four functions of member of the board of directors or equivalent in entities whose subject-matter is primarily commercial and which do not belong to the same group, the Authority of prudential control and resolution that may, however, authorize a person to exercise an additional mandate
– the creation of two specialized committees for entities of significant importance: the Risk Committee and the Appointment Committee in addition to the Compensation Committee established by the so-called "CRD III" Directive (4);
- the introduction of rules relating to the composition of the board of directors, which must be diversified and in particular allow for a balanced representation of women and men;
– a strengthened and harmonized sanctions regime at the European level: the directive allows for the harmonization and strengthening of practices so far very disparate within the European Union. The supervisory authorities will now be able to impose monetary penalties on legal persons in a maximum amount of 10% of the annual turnover or twice the benefit withdrawn from the breach when it can be determined and to issue a temporary suspension, resignation from office or a monetary penalty of up to five million euros. A mechanism for reporting misconduct and prudential regulations by the staff of the entities concerned is also in place;
― an extension of the scope of prudential supervision, including (i) an enhanced "pillar 2" (additional requirement of equity) that explicitly includes liquidity, (ii) an extension of the scope of interim measures at the disposal of the prudential and resolution control authority, which now includes the allocation of profits to equity, the limitation of remuneration and the assignment of certain activities, and (iii) new requirements applicable to the private sector
– a harmonization of rules relating to the accreditation of credit institutions within the Union, including enhanced governance oversight;
an update of the rules relating to consolidated monitoring and information exchange.
The "CRR" regulation is directly applied. Its entry into force on 1 January 2014 requires measures to adapt legislation, such as the repeal or adjustment of domestic provisions that have become non-compliant with European law. The draft order makes some of these adjustments, stating that the most important of them — the amendment of the definition of credit institution, made by theOrder No. 2013-544 of 27 June 2013 relating to credit institutions and financing companies, and the repeal of several ministerial orders relating to management standards, to which it will be carried out under the regulatory component of the transfer ― do not fall under this draft order.
The regulations include all management standards (i.e., "pillar 1") and the applicable publication rules (i.e., "pillar 3"). It includes (i) the harmonization and enhancement of prudential equity recognition rules, (ii) the enhancement of solvency and high-risk requirements, (iii) new liquidity monitoring measures (relating to liquidity needs and stable funding) and (iv) the risk of leverage.
The "Ficod" directive provides for further monitoring of financial conglomerates, with a redefinition of the criteria for the identification of conglomerates, the deepening of their monitoring (improvement of transparency, the possibility of conducting resistance tests, the establishment of European binding technical standards) and the extension of the monitoring scope to alternative fund managers.
This Order extends the provisions of the "CRD IV" directive, applicable to credit institutions and investment companies other than portfolio management companies, to financing companies.
The status of a funding corporation was created by the above-mentioned June 27, 2013 order for entities that, carrying on a credit activity without collecting repayable funds from the public, have no longer met, since January 1, 2014, the definition of a credit institution of the "RRC" regulation – "a business whose activity consists in receiving deposits or other repayable funds from the public and granting credits".
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The order is composed of four chapters, the first relating to the provisions amending the order monetary and financial code, the second to the provisions amending insurance code, code of mutuality and Social Security Codethe third to the various provisions and the fourth to the transitional and final provisions.
Chapter I amends the monetary and financial code.
Article 1 contains provisions for the adaptation of Book I and creates a new article L. 141-6-1 which provides for an obligation to alert the Bank of France of the European supervisory authorities, including the Autorité de contrôle prudentiel et de résolution.
Section 2 adapts the terms and references of Book III of the Monetary and Financial Code.
Section 3 amends Book V for service providers.
The 3rd specifies that funding companies are financial institutions within the meaning of community law.
The 5th creates a new article L. 511-8-1 that provides that any European credit or financial institution that operates on French territory by means of the "European passport" may, for the exercise of its activity in France, use the same name as that which it uses in the territory of its Member State of origin. However, where this denomination is likely to suggest that this institution may provide other services than those for which it enjoys the freedom of establishment or the free provision of services, or to create confusion in this respect, it shall include an explanatory reference to its denomination. This mention specifies the type of accreditation that the institution concerned, if its head office was located in France, would be required to obtain to carry out the operations it is authorized to carry out under the mutual recognition of the approvals. This mention is on any customer support or used for prospecting purposes.
The 6° to 21° concern the conditions of access to the activity.
The 6th amends section L. 511-10 relating to the accreditation of credit institutions and financing companies. It specifies the elements of appreciation taken into account by the Autorité de contrôle prudentiel et de résolution before authorizing access to banking activity. It provides that the approval is denied when the company's executives do not have sufficient guarantees of honourability, knowledge, competence and experience or do not meet the new requirements for the availability and limitation of the accumulated mandate. It expressly specifies, as is the case with other financial organizations, that the credit institution or the funding corporation must meet the conditions of its approval at any time.
At 7°, section L. 511-10-1 relating to the honesty, competence and experience of members of the board of directors, supervisory board and any other body performing equivalent functions is repealed and its provisions are moved to new section 8 on "Governance of credit institutions and financing companies".
The 9th completes article L. 511-12-1. In particular, it provides that, where the Authority of prudential control and resolution is aware that a person has taken or increased his or her participation in the capital of a credit institution or a financing company without seeking the prior authorization of the Authority, the Authority may direct that person to submit to this procedure without delay.
The 11th amends Article L. 511-14. It aims to regulate the accreditation process of credit institutions and finance companies within a time frame in accordance with the provisions of the CRD IV directive. It also removes the obligation to publish in the Official Journal of the French Republic the list of credit institutions, which is also subject to other forms of publication.
The 14° and 15° amend articles L. 511-20 and L. 511-21 which contain definitions. A number of existing definitions are in line with the definitions set out in the CRR Regulations and the parent and branch business concepts are now defined.
16°, 17°, 20° and 21° specify the conditions under which a Minister's order for the economy sets out the procedures for the exercise of freedom of establishment and free service.
The 18th and 19th points out, in articles L. 511-24 and L. 511-26, the obligations to be met in France by credit institutions and financial institutions benefiting from the "European passport".
At 22°, section L. 511-32 is updated to take into account the entry into force of the Direct Application "RRC" Regulations.
23° and 24° are devoted to the rules relating to professional secrecy applicable to credit institutions and financing companies, and to their parent companies. At 23°, in Article L. 511-33, a principle of reporting to the Authority of prudential control and resolution of breaches and breaches of prudential regulation by the staff of the latter and the staff of their external providers is established. The Autorité de contrôle prudentiel et de résolution collects reports under conditions that guarantee adequate protection of the identity of their author and of personal data contained in the reports.
The 25th to 27th are related to the accounting provisions, including the provision that the Autorité de contrôle prudentiel et de résolution ensures that the publication obligations set out in the "CRR" regulations are met.
The 28° to 45° relate to prudential provisions.
At 28°, the title in section 7 of Chapter I of Title I is amended to take into account the creation of a section 8 on the governance of credit institutions and finance companies and to devote section 7 to the only prudential provisions.
At 30°, in section L. 511-41, the obligation for subject entities to establish procedures for the implementation of the reporting procedure established by 23° in section L. 511-33.
The 31st introduces new provisions to section L. 511-41-1 A, which provides that credit institutions and financing companies may be subject to additional equity obligations (" cushions") under conditions defined by the Minister responsible for the economy. Where they do not meet these additional obligations, credit institutions or funding companies restrict the remuneration of Category 1 equity and certain categories of personnel. The provisions of section L. 511-41-1 A in its earlier drafting of this order are reproduced in section L. 511-102.
The 32° and 33° supersede the provisions of sections L. 511-41-1 B and L. 511-41-1 C, the provisions of which are incorporated in sections L. 511-73 and L. 511-78, respectively, by requirements relating to the assessment process of the internal capital adequacy to the risks involved.
At 36° amending Article L. 511-41-3, the competences of the Authority for prudential control and resolution are strengthened, in particular to enable it to take all liquidity measures and, more broadly, any measures intended to restore or strengthen the financial or liquidity situation of the entities subject to its control when the information it receives leads it to consider that an entity is likely to fail within a period of twelve months to its obligations. Similarly, the list of cases where the prudential control and resolution authority may require specific funds in excess of the minimum amount ("pillar 2") is supplemented as well as that of interim measures (including the possibility of assigning results, limiting the variable share of remuneration and reporting obligations). Finally, the Control and Resolution Authority may submit an entity to a specific liquidity requirement.
At the 37th amending section L. 511-41-4, the Autorité de contrôle prudentiel et de résolution may require parent companies of subject entities to publish an annual description of their legal structure as well as their governance and organizational structure.
At 38°, article L. 511-45, in its reaction from the Act No. 2013-672 of 26 July 2013 the separation and regulation of banking activities that transposed the "CRD IV" directive in advance, is amended to allow for a complete transposition of Article 89 on country-by-country information of the Directive.
46° inserts a new section 8 entitled "Governance of credit institutions and finance companies" that includes all provisions relating to governance and internal control applicable to credit institutions and finance companies. This section includes four sub-sections, respectively "Managers", "Organization and Internal Control", "Payment Policies and Practices" and "Specialized Committees".
Sub-Section 1, relating to executives, contains provisions relating to the requirements for accountability, experience, knowledge, competence and availability of credit institutions and finance companies. These requirements now apply to all members of the board (Article L. 511-51). Article L. 511-52 imposes on the leaders of credit institutions and finance companies that are of significant importance to the cumulative rules of more binding mandates than those provided by the Trade code. It provides that persons who are responsible for the effective direction of the business as well as members of the board of directors, the board of supervision, the board of directors or any other body performing equivalent functions may, at the same time, perform, within any legal entity, a function of general director or equivalent and two functions as a member of the board of directors or equivalent or four duties as a member of the board of directors or equivalent. These rules, which do not apply to representatives of the State sitting in social organs, may be subject to exceptions (entities of the same group or whose object is not primarily commercial, including when they are in the form of commercial companies) and certain softenings. In particular, the Prudential and Resolution Authority may authorize a person to perform a member of the board of directors or additional equivalent. Section L. 511-53 provides that credit institutions and funding companies allocate the necessary human and financial resources for the training of their leaders.
Sub-section 2, on organization and internal control, requires credit institutions and finance companies to develop a governance framework that includes a clear organizational structure, effective risk detection and monitoring procedures, an adequate internal control system, sound administrative and accounting procedures and a compensation policy that promotes good risk management. It sets out the principle of independence of control functions and operational units. It defines the respective responsibilities of governance and risk monitoring: (i) members of the board of directors, supervisory board or any other body performing equivalent oversight functions; (ii) persons who exercise the effective direction of the enterprise; (iii) persons responsible for risk management (whose manager must have a sufficiently high hierarchical positioning.
Section L. 511-55 sets out the principle of proportionality of the governance system that must be adapted to the nature, scale and complexity of the risks inherent in the business model and the activities of the credit establishment or the financing company. In addition, section L. 511-57 makes applicable the rules relating to the supervision of remuneration to entities of a group meeting the criteria set by order of the Minister responsible for the economy, taking into account, inter alia, their size and internal organization, as well as the nature, scale and complexity of their activity or the provisions governing the remuneration to which these entities are otherwise held.
Section L. 511-58 provides that the chair of the board of directors or any other body performing equivalent oversight functions of a credit institution or a funding corporation shall not be exercised by the Director General or by a person performing equivalent management functions. However, the Autorité de contrôle prudentiel et de résolution may authorize the accumulation of these functions on a reasoned request from the credit institution or the financing company.
Sub-Section 3 on Compensation Policy and Practices reinforces the compensation framework for risk-takers introduced by the "CRD III" directive, including a cap for variable remuneration. Thus, section L. 511-73 provides that the variable share of the total remuneration of the risk-takers may not exceed the fixed share of that remuneration. However, the Competent General Meeting of the Credit Institution or Finance Corporation may double the amount of fixed remuneration.
In addition, at least 40% of the variable portion of the pay (60% for the highest) must be deferred for at least three years. At least 50% of this variable remuneration must be composed of shares or related instruments.
In addition, section L. 511-84 states that the total amount of the variable remuneration may, in whole or in part, be reduced or restitution based, inter alia, on the actions or behaviour of the person concerned.
Sub-section 4, relating to specialized committees, requires credit institutions and funding companies of significant importance to their size and internal organization, as well as to the nature, scale and complexity of their activities, the creation of two specialized committees, the Risk Committee and the Appointments Committee, in addition to the Compensation Committee established during the transposition of the "CRD III" directive, and specifies the terms and conditions of incorporation,
Article L. 511-91 allows credit institutions and financing companies that are part of a group under the supervision of the Authority for prudential control and resolution on a consolidated or sub-consolved basis, to establish these committees at the group level; the RCA may use its injunction power, in accordance with section L. 511-41-3, to ensure that these committees are also established on an individual basis.
The 47° to 56° have coordination provisions, in particular to take into account the new powers of the Autorité de contrôle prudentiel et de résolution en matière de sanctions et de l'applicabilité directe des dispositions du règlement "CRR".
The 57° to 70° are devoted to the provisions relating to holding financial companies, parent financing companies, joint holding financial companies, financial conglomerates, joint holding companies and mixed parent companies of financing companies.
59° amends, in section L. 517-1, the definition of a holding financial company to align it with that of the "CRR" regulation. It also amends the definition of a parent company of financing companies to take into account the introduction in French law of mixed holding companies.
The 60°, 61° and 66° to 69° transpose provisions of the "Ficod" directive.
At 60° the definitions of terms used for the definition and supplementary monitoring of financial conglomerates are updated.
The 63° inserts, within a new subsection, an article L. 517-4-1 that introduces in French law the mixed holding companies, whose definition is taken from the "CRR" regulation. It creates mixed parent companies of a financing company, which are defined in comparable terms, for entities that have at least one financing company among their subsidiaries.
The 65° specifies the obligations of the holding financial companies and the parent companies of the financing company. In particular, it provides that they are subject to the rules relating to professional secrecy and that they ensure the proper application by their subsidiaries of governance provisions. Members of their boards of directors, supervisory boards, directors or other bodies performing equivalent functions must have at any time the appropriate honesty, knowledge, competence and experience.
At 68° amending Article L. 517-8 is created a possibility for the Autorité de contrôle prudentiel et de résolution to set quantitative limits to any concentration of risks at the financial conglomerate level and intragroup transactions between the various regulated entities of the financial conglomerate.
69° specifies the provisions applicable to mixed holding financial companies. It allows the Autorité de contrôle prudentiel et de résolution, after consultation with the competent authorities of the other Member States of the European Union or other States parties to the European Economic Area, to submit these entities to a lightened regime in respect of consolidated banking surveillance.
The 70° inserts, within a new subsection, an article L. 517-10, which defines the obligations to which joint holding companies and mixed parent companies of the financing company are subject. In particular, these are rules relating to professional secrecy and the transmission of information to the Authority for prudential control and resolution.
71° provides for coordination provisions in Article L. 518-15-2 relating to the external control of the Caisse des dépôts et consignations, in particular to take into account the directly applicable nature of the Regulation "CRR".
The 72° to 83° extend to investment companies other than portfolio management companies the provisions applicable to credit institutions and financing companies in respect of, inter alia, the reporting mechanism to the prudential and resolution control authority, the rules relating to management standards, governance and those related to the assessment requirements of the internal capital adequacy to the risks involved. The rules for additional capital "bags" are extended only to certain investment companies (Article L. 533-2-1).
86° to 90° update the provisions of Title VII relating to criminal provisions.
Article 4 amends book VI of the monetary and financial code relating to banking and financial institutions.
The first amends section L. 611-1 to allow the Minister responsible for the economy to specify by order the rules applicable to branches established in the territory of the French Republic by third country credit institutions.
The 4th to 16th are devoted to chapter II of Book VI relating to the Autorité de contrôle prudentiel et de résolution.
At 5°, the list is amended to article L. 612-2 of the persons subject to the control of the Authority of prudential control and resolution: it is supplemented by the parent companies of the financing company, the joint holding companies and the mixed parent companies of the financing company (in respect of the latter two categories, for the only provisions applicable to them under Article L. 517-10, including certain provisions relating to the governance and Supervision of the liquidity of branches is entrusted to the competent authority of the Member State of origin.
The 7th amends Article L. 612-20 in order to subject to the contribution for control costs the new persons now subject to the control of the Autorité de contrôle prudentiel et de résolution. In view of their specificity, joint holding companies and joint parent companies of financing companies make a lump sum contribution.
The 8th amends section L. 612-23-1, which defines the terms and conditions of control, by the Authority for prudential and resolution control, of the requirements laid out in terms of honesty, knowledge, competence and experience for each appointment or renewal of a credit or investment company manager. This control is extended to compliance with the availability and cumulative terms of reference rules and now also covers all members of the board. The scope of this section now includes funding companies and, under conditions that take into account their specificity, holding financial companies, joint holding companies and parent financing companies.
The 9th amends section L. 612-24 in order to allow the Autorité de contrôle prudentiel et de résolution to request to any subsidiary of an entity under its supervision as well as to any third party to which such persons have outsourced part of their activities any documents necessary for the performance of their missions. It may also request the parent company of an entity to which it supervises the communication of any necessary information.
The 11th supplements section L. 612-32 to allow the Authority to control prudential and resolution to require entities that it supervise a recovery strategy, including liquidity, including where it considers that these entities are likely to fail, within 12 months, to their obligations.
The 12th completes the list of precautionary and resolution measures that the Authority may take in accordance with Article L. 612-33. This list now includes the possibility of charging some of its agents to carry out a permanent control mission within the subject entity, requiring the assignment of activities, limiting the number of agencies or branches, or prohibiting or limiting, under certain conditions, the payment of interest to the holders of additional Category 1 equity instruments and requiring the reduction of the risks inherent in the activities, products and
At 14° are grouped, within Article L. 612-40, the penalties applicable for any violation of the rules defined by the "CRD IV package", Article L. 612-39 being reserved for the penalties applicable to the offences of the rules outside of this "package". In this regard, the directive allows for the harmonization and strengthening of practices so far very disparate within the Union. The Autorité de contrôle prudentiel et de résolution will now be able to impose on legal persons monetary penalties, of a maximum amount of 10% of the annual turnover or twice the benefit withdrawn from the default, when it can be determined, for credit establishments, investment companies, financing companies, holding financial companies, mixed holding financial companies and parent companies of financing companies, and of a maximum amount
The 16th amends section L. 612-44: must now be forwarded to the President of the Board of Directors or the Supervisory Board, to the members of the board and to the persons who ensure the effective management of the company the facts and decisions concerning the subject persons reported by the auditors to the Autorité de contrôle prudentiel et de résolution, unless there is compelling reason.
The 17° to 24° are devoted to the monitoring of groups on a consolidated basis. In this regard, the title of chapter III, section 1, of title I is amended (17°). Within this section, two sub-sections are created, respectively dedicated to monitoring on a consolidated basis by the Autorité de contrôle prudentiel et de résolution and the colleges of supervisors (18°) and to monitoring on a basis consolidated by a competent authority of another Member State of the European Union or another State Party to the European Economic Area (24°).
The provisions relating to the colleges of supervisors are supplemented, in particular to include the treatment of emergency situations, to involve the central banks of the European System of Central Banks in the planning and coordination of prudential surveillance activities (Article L. 613-20-1), to provide that the colleges adopt common decisions on the monitoring of liquidity (Article L. 613-20-4) and to specify the possibilities of seizure of the European Bank Authority, in accordance with the EU Regulation
The 28° to 31° are devoted to chapter III, section 3, title I, relating to the specific control regime. Section L. 613-32 is reinstated and two articles, respectively numbered L. 613-32-1 and L. 613-33-4, are newly created. These include the exchange of information between competent authorities for the control of credit institutions and investment companies, other than portfolio management companies, benefiting from the freedom of establishment or the free provision of services.
The 35° to 60° are devoted to Title III of Book VI relating to the monitoring of the financial system, cooperation, exchange of information and complementary monitoring of financial conglomerates.
At 35°, Article L. 631-2-1 is amended to allow the High Financial Stability Board, established by the Act No. 2013-672 of 26 July 2013 the separation and regulation of banking activities, the identification of more binding obligations than those of the "CRR" regulation for credit institutions and investment companies, and the management standards set out by the Minister responsible for the economy for the financing companies, and the measures set out in section 458 of the "CRR" regulation.
The 36° to 47° are devoted to chapter II on cooperation and exchange of information with foreigners. The 36th creates an article L. 632-1 Resuming the obligation of non-disclosure by the Authority for prudential control and resolution of information provided by another authority without its agreement.
The 45th creates an article L. 612-32-1 for information exchanges with some authorities of the Member States of the European Union or the European Economic Area.
The 50° to 60° are devoted to chapter III on the supplementary monitoring of financial conglomerates.
At 50°, Article L. 633-1 is supplemented so that the Autorité de contrôle prudentiel et de résolution or, where applicable, the Autorité des marchés financiers, when it considers that a regulated entity subject to its control belongs to a group that may be a financial conglomerate and that has not yet been identified as such, informs the other competent authorities concerned and the Joint Committee of the European Supervisory Authorities.
52° amends Article L. 633-3 by adding the possibility for the Autorité de contrôle prudentiel et de résolution, when it is coordinator, to submit a financial conglomerate to crisis simulation exercises, in cooperation with the relevant authorities.
At 53° to 56°, section 4 "Cooperation and exchange of information for the purpose of complementary monitoring" is supplemented, in particular to dedicate the role of supervisory colleges in cooperation between authorities.
Article 5 replaces, in books I to VI of the monetary and financial code, the words "the European Community" with the words "the European Union".
Chapter II contains provisions amending the insurance code (art. 6), the mutuality code (art. 7) and the social security code (art. 8). All provisions relating to financial conglomerates have now been consolidated within the monetary and financial code (with the exception of sectoral consolidated monitoring provisions), it removes items that have become obsolete, so that each of the codes concerned no longer contains a reference article to the relevant provisions of the monetary and financial code. It also performs the updating of definitions and references resulting from changes to monetary and financial code. It also allows the Autorité de contrôle prudentiel et de résolution, after consultation with the competent authorities of the other Member States of the European Union or other States parties to the European Economic Area, to submit the joint holding financial companies to a reduced regime in the matter of consolidated monitoring of insurance.
Chapter III (art. 9) contains various provisions, including updating cross references within the General Tax Code and other uncodified orders.
Chapter IV contains the transitional and final provisions.
Section 10 provides, inter alia, that (i) certain liquidity provisions will enter into force at the same time as the liquidity requirements in accordance with the delegated act provided for in section 460 of the RRC Regulations; (ii) the governance rules for cumulative functions will come into force on 1 July 2014; (iii) the bonds of additional equity (" cushions") will come into force on the terms and conditions established by the Minister for the Economy and no later than January 1, 2019; (iv) on July 1, 2014, credit institutions, holding financial companies and joint holding financial companies, and investment companies publish a first set of country-by-country information (name of implantations, nature of activity and geographical location, net banking product and turnover, workforce); (v) no later than 1 July 2014 credit institutions and investment companies, other than portfolio management companies, which are of global systemic importance, transmit to the European Commission a number of country-by-country information (benefit or pre-tax loss, amount of tax on profits whose settlements are indebted, public subsidies received).
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This is the subject of this order that we have the honour to submit to your approval.
Please accept, Mr. President, the assurance of our deep respect.
