(1) Where an investment firm authorised in another Member State carries out its activities through a branch in the State, the competent authority of the home Member State of the investment firm may, after having informed the Bank, carry out, itself or through intermediaries that it appoints for that purpose, on-the-spot checks of the information referred to in Regulation 11(1) and inspect the branch.

(2) Where the State is the host Member State of an investment firm, the Bank shall, for supervisory purposes and where it considers it to be relevant for reasons of stability of the financial system in the State, have the power to carry out, on a case-by-case basis, on-the-spot checks and inspections of the activities carried out by branches of the investment firm in the State and require information from a branch about its activities.

(3) Before carrying out the checks and inspections referred to in paragraph (2), the Bank shall, without delay, consult the competent authority of the home Member State of the investment firm.

(4) As soon as possible following the completion of the checks and inspections referred to in paragraph (2), the Bank shall communicate to the competent authority of the home Member State of the investment firm the information obtained and findings that are relevant for the risk assessment of the investment firm.