1. Competent authorities may exempt an investment firm from the application of Article 5 in respect of Parts Two, Three, Four, Six and Seven, where all of the following conditions apply:
(a) the investment firm meets the conditions for qualifying as a small and non-interconnected investment firm set out in Article 12(1);
(b) one of the following conditions is satisfied:
(i) the investment firm is a subsidiary and is included in the supervision on a consolidated basis of a credit institution, a financial holding company or a mixed financial holding company, in accordance with the provisions of Chapter 2 of Title II of Part One of Regulation (EU) No 575/2013;
(ii) the investment firm is a subsidiary and is included in an investment firm group supervised on a consolidated basis in accordance with Article 7;
(c) both the investment firm and its parent undertaking are subject to authorisation and supervision by the same Member State;
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