European Union (Capital Requirements) (Amendment) Regulations 2020

• Jurisdiction: Ireland
• Citation: IR SI 710/2020
• Year: 2020

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th January, 2021.

I, PASCHAL DONOHOE, Minister for Finance, in exercise of the powers conferred on me by section 3 of the European Communities Act 1972 (No. 27 of 1972) and for the purpose of giving further effect to Directive 2013/36/EU of the European Parliament and of the Council of 26 June 20131 , as amended by Directive 2019/878/EU of the European Parliament and of the Council of 20 May 20192 , hereby make the following regulations:

Citation and Commencement

1. (1) These Regulations may be cited as the European Union (Capital Requirements) (Amendment) Regulations 2020.

(2) Subject to paragraphs (3) and (4), these Regulations come into operation on 29 December 2020.

(3) Regulation 18 and paragraphs (b), (c) and (d) of Regulation 26 come into operation on 28 June 2021.

(4) Regulations 53 (in so far as it relates to the insertion of Regulations 129B and 129C into the Principal Regulations) and 54 come into operation on 1 January 2022.

Definition

2. In these Regulations, “Principal Regulations” means the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ).

Amendment of Regulation 2 of Principal Regulations

3. Regulation 2 of the Principal Regulations is amended—

(a) in paragraph (5)—

(i) in subparagraph (a), by the substitution of “Directive 2014/65/EU” for “Directive 2004/39/EC”,

(ii) in paragraph (d), by the substitution of “friendly societies;” for “friendly societies.”, and

(iii) by the insertion of the following paragraph after paragraph (d):

“(e) the Strategic Banking Corporation of Ireland.”, and

(b) in paragraph (6), by the substitution of “paragraph (5)(a), (c), (d) and (e)” for “paragraph (5)(a), (c) and (d)”,

Amendment of Regulation 3 of Principal Regulations

4. Regulation 3 of the Principal Regulations is amended—

(a) in paragraph (1)—

(i) by the insertion of the following definitions:

“ ‘gender neutral remuneration policy’ means a remuneration policy based on equal pay for male and female workers for equal work or work of equal value;

‘group’ has the meaning assigned to it in point (138) of Article 4(1) of the Capital Requirements Regulation;

‘non-EU G-SII’ has the meaning assigned to it in point (134) of Article 4(1) of the Capital Requirements Regulation;

‘resolution authority’ has the meaning assigned to it in the European Union (Bank Recovery and Resolution) Regulations 2015 ( S.I. No. 289 of 2015 );

‘third-country group’ means a group of which the parent undertaking is established in a third country;”,

(ii) by the substitution of the following definition for the definition of “authorisation”:

“ ‘authorisation’, in relation to a credit institution in the State, means an authorisation or licence by the Bank or the ECB to carry on the business of a credit institution in accordance with the provisions of any financial services legislation, other than an authorisation granted under section 9A of the Act of 1971;”,

(iii) by the substitution of the following definition for the definition of “Capital Requirements Directive”:

“‘Capital Requirements Directive’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 20133 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended by—

(a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 20144 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

(b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 20145 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

(c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 20156 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

(d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 20187 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU, and

(e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 20198 amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures;”, and

(iv) by the substitution of the following definition for the definition of “G-SII”:

“ ‘G-SII’ has the meaning assigned to it in point (133) of Article 4(1) of the Capital Requirements Regulation;”, and

(b) by the insertion of the following paragraph after paragraph (2):

“(3) A reference in these Regulations to ‘institution’, ‘parent institution in a Member State’, ‘EU parent institution’ or ‘parent undertaking’ shall include a reference to the following:

(a) financial holding companies and mixed financial holding companies that have been granted approval in accordance with Chapter 1A of Part 3 or the law of a Member State other than the State giving effect to Article 21a of the Capital Requirements Directive;

(b) designated institutions controlled by an EU parent financial holding company, an EU parent mixed financial holding company, a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State where the relevant parent is not subject to approval in accordance with Regulation 9D or the law of a Member State other than the State giving effect to Article 21a(4) of the Capital Requirements Directive;

(c) financial holding companies, mixed financial holding companies or institutions designated pursuant to Regulation 9F or the law of a Member State other than the State giving effect to point (d) of Article 21a(6) of the Capital Requirements Directive.”.

Financial holding companies, mixed financial holding companies and intermediate EU parent undertakings

5. Part 3 of the Principal Regulations is amended by the insertion of the following Chapters after Chapter 1:

“Chapter 1A

Financial holding companies and mixed financial holding companies

Application for approval of financial holding companies and mixed financial holding companies

9A. (1) Subject to Regulation 9D, the following shall make an application for approval in accordance with this Chapter:

(a) a parent financial holding company established in the State;

(b) a parent mixed financial holding company established in the State;

(c) an EU parent financial holding company established in the State;

(d) an EU parent mixed financial holding company established in the State.

(2) Subject to Regulation 9D, where a financial holding company or mixed financial holding company established in the State that is not referred to in paragraph (1) is required to comply with these Regulations or the Capital Requirements Regulation on a sub-consolidated basis, it shall seek approval in accordance with this Chapter.

(3) A financial holding company or mixed financial holding company making an application for approval in accordance with this Chapter shall provide the consolidating supervisor and, where different, the Bank with the following information when making the application:

(a) the structural organisation of the group of which the financial holding company or the mixed financial holding company, as the case may be, is part, with a clear indication of its subsidiaries and, where applicable, parent undertakings, and the location and type of activity undertaken by each of the entities within the group;

(b) information regarding—

(i) the nomination of at least two persons effectively directing the financial holding company or mixed financial holding company, as the case may be, and

(ii) compliance with the requirements under Regulation 109 in relation to the qualification of directors;

(c) information regarding compliance with the criteria specified in Regulation 9C(3), where the financial holding company or mixed financial holding company has a credit institution as its subsidiary;

(d) the internal organisation and distribution of tasks within the group;

(e) any other information that may be necessary to carry out the assessments referred to in Regulations 9C and 9D.

Concurrent assessment of acquisition

9B. (1) Where—

(a) the approval of a financial holding company or mixed financial holding company takes place concurrently with an assessment by the Bank under Regulation 15 of an acquisition by that financial holding company or mixed financial holding company, as the case may be, and

(b) the Bank is neither—

(i) the consolidating supervisor in respect of the financial holding company or the mixed financial holding company, as the case may be, nor

(ii) the competent authority in the Member State in which the financial holding company or the mixed financial holding company, as the case may be, is established,

the Bank shall coordinate, as appropriate, with the consolidating supervisor and, where different, the competent authority in the Member State where the financial holding company or mixed financial holding company, as the case may be, is established.

(2) Where paragraph (1) applies, the assessment period referred to in Regulation 14(3) shall be suspended...