European Union (Single Supervisory Mechanism) Regulations 2014.

• Published date: 04 November 2014
• Statutory Instrument No.: 495/2014

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 4th November, 2014.

I, MICHAEL NOONAN, 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 full effect to Council Regulation (EU) No. 1024/2013 of 15 October 20131 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions and Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 20142 establishing the framework for co-operation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities, hereby make the following Regulations:

Citation and commencement

1. (1) These Regulations may be cited as the European Union (Single Supervisory Mechanism) Regulations 2014.

(2) These Regulations shall come into operation on 4 November 2014.

Interpretation

2. (1) In these Regulations—

“Act of 1942” means the Central Bank Act 1942 (No. 22 of 1942);

“Act of 1971” means the Central Bank Act 1971 (No. 24 of 1971);

“Act of 1989” means the Building Societies Act 1989 (No. 17 of 1989);

“Act of 2010” means the Central Bank Reform Act 2010 (No. 23 of 2010);

“Act of 2011” means the Central Bank and Credit Institutions (Resolution) Act 2011 (No. 27 of 2011);

“Bank” means the Central Bank of Ireland;

“ECB” means the European Central Bank;

“financial services legislation” has the meaning it has in the Central Bank (Supervision and Enforcement) Act 2013 (No. 26 of 2013);

“Regulations of 2004” means the European Communities (Financial Conglomerates) Regulations 2004 ( S.I. No. 727 of 2004 );

“Regulations of 2014” means the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 );

“SSM Regulation” means Council Regulation (EU) No. 1024/2013 of 15 October 20131 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions;

“SSM Framework Regulation” means Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 20142 establishing the framework for co-operation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities.

(2) Subject to subsection (1), a word or expression that is used in these Regulations and is also used in the SSM Regulation has, unless the context otherwise requires, the same meaning in these Regulations as it has in the SSM Regulation.

Performance of certain functions

3. (1) The functions (other than a power to bring and prosecute proceedings for an offence) of the Bank under financial services legislation shall, in addition to being performable by the Bank, be performable by the ECB to the extent only that their performance is necessary for the performance of functions conferred on the ECB by the SSM Regulation and the SSM Framework Regulation and, accordingly, references in financial services legislation to the Bank shall, in so far as they relate to a function so conferred, be construed as including references to the ECB.

(2) The functions conferred on the Bank under the provisions of Part IIIC of the Act of 1942 shall, in addition to being performable for the purposes to which those provisions (apart from these Regulations) relate, be performable for the purposes of ensuring compliance with a direction of the ECB under Article 18 of the SSM Regulation.

(3) The functions conferred on the Head of Financial Regulation under Chapters 3 and 4 of Part 3 of the Act of 2010 shall, in addition to being performable for the purposes to which those provisions (apart from these Regulations) relate, be performable for the purposes of ensuring compliance with a direction of the ECB under Article 9 or 18 of the SSM Regulation.

Amendment of Central Bank Act 1942

4. Section 2 of the Act of 1942 is amended—

(a) in subsection (1)—

(i) by the insertion of the following definitions:

“ ‘ECB’ means the European Central Bank;

‘SSM Regulation’ means Council Regulation (EU) No. 1024/2013 of 15 October 20133 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions;

‘SSM Framework Regulation’ means Regulation (EU) No. 468/2014 of the European Central Bank of 16 April 20144 establishing the framework for co-operation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities;”, and

(ii) in the definition of “regulated financial service provider”, by the insertion of the following paragraph after paragraph (b):

“(bb) a financial service provider whose business is subject to supervision by the ECB under a designated enactment, or”, and

(b) in subsection (2A), by the substitution of the following for paragraph (j):

“(j) Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 20125 ;

(k) the SSM Regulation;

(l) the SSM Framework Regulation.”.

5. Section 33AK of the Act of 1942 is amended—

(a) by the substitution of “supervisory EU legal acts” for “Supervisory Directives” in each place where it occurs,

(b) in subsection (5), by the substitution of the following paragraphs for paragraph (at) (inserted by Regulation 38 of the European Union (European Markets Infrastructure) Regulations 2014 ( S.I. No. 443 of 2014 )) and paragraphs (as) and (at) (inserted by section 50 of the Freedom of Information Act 2014 (No. 30 of 2014)):

“(as) for the purposes of contractual or institutional protection schemes as referred to in Article 113(7) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 20136 , or

(at) for any purpose connected with the functions of the Bank under Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 20127 , or

(au) to the Information Commissioner that is required for the performance of that Commissioner’s functions under the Freedom of Information Act 2014 , or

(av) to the ECB or a national competent authority in accordance with the SSM Regulation or the SSM Framework Regulation.”,

(c) in subsection (10) by the substitution of the following paragraphs for paragraph (s):

“(s) Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 20128 on OTC derivatives, central counterparties and trade repositories,

(t) the SSM Regulation, and

(u) the SSM Framework Regulation.”.

6. The Act of 1942 is amended by the insertion of the following section after section 33ANC:

“33AND. This Part is subject to the provisions of the SSM Regulation and the SSM Framework Regulation.”.

7. Section 33AQ of the Act of 1942 is amended in subsection (3)—

(a) in paragraph (ca), by the substitution of “in the case of a financial service provider not authorised by the ECB under the SSM Regulation, suspension of its authorisation” for “suspension of its authorisation”,

(b) in paragraph (cb), by the substitution of “in the case of a financial service provider not authorised by the ECB under the SSM Regulation, revocation of its authorisation” for “revocation of its authorisation”, and

(c) by the insertion of the following paragraphs after paragraph (cb):

“(cc) in the case of a financial service provider authorised by the ECB under the SSM Regulation, the submission of a proposal to the ECB to suspend its authorisation, in respect of any one or more of its activities, for such period, not exceeding 12 months, as the Bank considers appropriate;

(cd) in the case of a financial service provider authorised by the ECB under the SSM Regulation, the submission of a proposal to the ECB to withdraw its authorisation;”.

8. Section 33BC of the Act of 1942 is amended in subsection (4), in paragraph (a), by the substitution of “supervisory EU legal acts” for “Supervisory Directives”.

9. Section 57A of the Act of 1942 is amended by the insertion of the following subsection after subsection (2):

“(3) For the purposes of this Part, an appealable decision does not include a decision of the ECB pursuant to the SSM Regulation.”.

Amendment of Central Bank Act 1971

10. Section 2 of the Act of 1971 is amended—

(a) in subsection (1), by the substitution of the following definition for the definition of “licence”:

“ ‘licence’ means—

(a) an authorisation granted under the SSM Regulation on the application therefor under section 9, or

(b) a licence granted under section 9 before the commencement of the European Union (Single Supervisory Mechanism) Regulations 2014 that is deemed, in accordance with the SSM Regulation, to be an authorisation granted by the ECB under that Regulation,

for the time being in force.”

(b) in subsection (1), by the addition of the following definitions:

“ ‘ECB’ means the European Central Bank;

‘SSM Regulation’ means Council Regulation (EU) No. 1024/2013 of 15 October 20139 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions”, and

(c) by the deletion of subsection (2).

11. Section 7 of the Act of 1971 is amended by the deletion of subsection (5).

12. Section 9 of the Act of 1971 is amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) Subject to sections 9H to 9J, the Bank shall, either—

(a) if it is satisfied that the conditions referred to in sections 9D to 9G have been complied with, take a draft decision to propose to the ECB to grant a licence to a person applying to it for the grant thereof authorising the holder to carry on banking business, or

(b) if it is not so satisfied, reject the application.”,

(b) by the deletion of subsection (6)...