Recital 2

(2)Commission Delegated Regulation (EU) 2016/98 ² lays down general conditions for the functioning of the colleges of supervisors to be established in accordance with Article 51(3) and Article 116 of Directive 2013/36/EU. New provisions were introduced in Directive 2013/36/EU on the authorisation of certain financial holding companies and mixed financial holding companies, on the establishment of intermediate EU parent undertakings and on colleges for groups headed in the Union, the subsidiaries of which are established in third countries. In addition, investment firms were removed from the scope of Directive 2013/36/EU as the definition of the term institution no longer includes investment firms, while some of the provisions of Directive 2013/36/EU still apply to them. To account for those multiple amendments and for the sake of legal certainty, it is necessary to repeal and replace Delegated Regulation (EU) 2016/98.