(1) The Bank may, where it is responsible for the supervision of an investment firm whose parent undertaking is a mixed-activity holding company -

(a) require that the mixed-activity holding company supply the Bank with any information that may be relevant for the supervision of that investment firm, and

(b) supervise transactions between the investment firm and the mixed-activity holding company and the subsidiaries of the latter, and require the investment firm to have in place adequate risk management processes and internal control mechanisms, including sound reporting and accounting procedures to identify, measure, monitor and control those transactions.

(2) The Bank may carry out, or have carried out by external inspectors, on- the-spot inspections to verify the information received from mixed-activity holding companies and their subsidiaries.