Table of Contents
European Union (Capital Requirements) Regulations 2014 [S.I. No. 158 of 2014]Introductory TextPart 1 Preliminary and General (regs. 1-3)Regulation 1 Citation and commencementRegulation 2 ScopeRegulation 3 InterpretationPart 2 Competent Authority (regs. 4-6)Regulation 4 Designation of competent authorityRegulation 5 Cooperation within the European System of Financial SupervisionRegulation 6 European Union dimension of supervisionPart 3 Requirements for access to the activity of credit institutions (regs. 7-25)Chapter 1 General requirements for access to the activity of credit institutions (regs. 7-9)Regulation 7 Branches of credit institutions authorised in another Member StateRegulation 8 Name of credit institutionsRegulation 9 Notification where Bank acts as consolidating supervisorChapter 1A Financial holding companies and mixed financial holding companies (regs. 9A-9H)Regulation 9A Application for approval of financial holding companies and mixed financial holding companiesRegulation 9B Concurrent assessment of acquisitionRegulation 9C Grant of approvalRegulation 9CA Assessment of suitability of shareholders or membersRegulation 9D ExemptionRegulation 9E MonitoringRegulation 9F Supervisory measuresRegulation 9G Cooperation with other authorities: non-financial conglomeratesRegulation 9H Cooperation: financial conglomeratesChapter 1B Intermediate EU parent undertakings (reg. 9I)Regulation 9l Intermediate EU parent undertakingsChapter 2 Qualifying holding in a credit institution (regs. 10-25)Regulation 10 Restrictions on acquiring and disposing of qualifying holdings in credit institutionsRegulation 11 Application to court where no notification givenRegulation 12 Notification in case of divestitureRegulation 13 Credit institutions to provide information on certain acquisitions and disposalsRegulation 14 Period for assessment of proposed acquisitionRegulation 15 Assessment of proposed acquisitionRegulation 16 Bank to cooperate with competent authorities of other Member States in certain casesRegulation 17 Bank may fix period for completion of acquisition, etc.Regulation 18 Notice of Bank's decisionRegulation 19 Bank may oppose certain acquisitionsRegulation 20 Decision to oppose proposed acquisition to be appealableRegulation 21 Circumstances in which proposed acquisition may be concludedRegulation 22 Effect of section 201 of Companies Act 1963Regulation 23 Credit institutions to provide information about shareholdings, etc.Regulation 24 Powers in relation to certain persons with qualifying holdingsRegulation 25 Criteria for qualifying holdingsPart 4 Initial capital of investment firms, local firms and firms not authorised to hold client money or securities (regs. 26-31)Regulation 26 Initial capital for investment, local and other firmsRegulation 27 Initial capital for particular types of investment firmsRegulation 28 Initial capital for local firmsRegulation 29 Coverage for firms not authorised to hold client money or securitiesRegulation 30 Own funds of investment firms and firms covered by Regulation 28Regulation 31 Grandfathering provisionPart 5 Freedom of establishment and freedom to provide services (regs. 31A-44)Chapter 1 General principles (reg. 31A)Regulation 31ARegulation 32 Mutual recognition of provision of banking servicesChapter 2 The right of establishment of credit institutions (regs. 33-37)Regulation 33 Provisions relating to the establishment of a branch in another Member StateRegulation 34 Provisions relating to the establishment in the State of a branch from another Member StateRegulation 34ARegulation 35 Change in information provided under Regulation 33Regulation 36 Existing branchesRegulation 37 Information about refusalsChapter 3 Freedom to provide services (reg. 38)Regulation 38 Notification procedureChapter 4 Powers of the Bank when acting as host Member State competent authority (regs. 39-44)Regulation 39 Reporting requirementsRegulation 40 Measures taken by the competent authorities of the home Member State in relation to activities carried out in the host Member StateRegulation 41 Reasons and communicationRegulation 42 Precautionary measuresRegulation 43 Measures following withdrawal of authorisationRegulation 44 AdvertisingPart 6 Prudential Supervision (regs. 45-130)Chapter 1 Principles of prudential supervision (regs. 45-59)Competence and duties of home and host Member States (regs. 45-59A)Regulation 44ARegulation 45 Competence of the BankRegulation 46 Collaboration concerning supervisionRegulation 47 Designation of branch of institution in State as significantRegulation 48 Designation of branch of an institution in another Member State as significantRegulation 49 Bank to establish college of supervisors for significant branchesRegulation 50 On-the-spot checking and inspection of branches established in another Member StateRegulation 50A Exchange of information with oversight bodiesRegulation 50B Transmission of information to international bodiesRegulation 51 Processing of personal dataRegulation 52 Duty of persons responsible for the legal control of annual and consolidated accountsRegulation 52A Removal and replacement of auditor - removal noticeRegulation 52B Removal and replacement of auditor - application to courtRegulation 52C Matters ancillary to removal notice and removal orderRegulation 52D Reasoned decisionsRegulation 53 Administrative penalties and other administrative measuresRegulation 54 Administrative penalties and other administrative measures for breaches of authorisation requirements and requirements for acquisitions of qualifying holdingsRegulation 55 Other provisions on administrative penaltiesRegulation 56 Publication of administrative penaltiesRegulation 57 Exchange of information on penalties and maintenance of central database by EBARegulation 58 Effective application of penalties and exercise of powers to impose penalties by BankRegulation 59 Reporting of breachesRegulation 59A Right of appealChapter 2 Review Processes (regs. 60-98)Internal capital adequacy assessment process (reg. 60)Regulation 60 Internal CapitalArrangements, processes and mechanisms of institutions (regs. 61-98)General principles (regs. 61-63)Regulation 61 Internal governance and recovery plansRegulation 62 Resolution plansRegulation 63 Oversight of remuneration policiesTechnical criteria concerning the organisation and treatment of risks (regs. 64-75)Regulation 64 Treatment of risks - risk committee and combined committeeRegulation 65 Internal approaches for calculating own funds requirementsRegulation 66 Supervisory benchmarking of internal approaches for calculating own funds requirementsRegulation 67 Credit and counterparty riskRegulation 68 Residual riskRegulation 69 Concentration riskRegulation 70 Securitisation riskRegulation 71 Market riskRegulation 72 Interest risk arising from non-trading book activitiesRegulation 73 Operational riskRegulation 74 Liquidity riskRegulation 75 Risk of excessive leverageGovernance (regs. 76-84)Regulation 76 Governance arrangementsRegulation 77 Country-by-country reportingRegulation 78 Public disclosure of return on assetsRegulation 79 Management bodyRegulation 79A Removal of member of management bodyRegulation 79B Removal noticeRegulation 79C Effect of removal noticeRegulation 79D Confirmation of removal noticeRegulation 79E Enforcement of removal noticeRegulation 79F Court's power to extend validity of removal noticesRegulation 79G Compliance with removal noticeRegulation 80 Remuneration policiesRegulation 81 Institutions that benefit from government interventionRegulation 82 Variable elements of remunerationRegulation 83 Remuneration committeeRegulation 84 Maintenance of website on corporate governance and remunerationSupervisory review and evaluation process (regs. 85-89)Regulation 85 Supervisory review and evaluationRegulation 86 Technical criteria for the supervisory review and evaluationRegulation 87 Supervisory examination programmeRegulation 88 Supervisory stress testingRegulation 89 Ongoing review of the permission to use internal approachesSupervisory measures and powers (regs. 90-95)Regulation 90 Supervisory measuresRegulation 91 Application of supervisory measures to institutions with similar risk profilesRegulation 92 Supervisory powersRegulation 92A Additional own funds requirementRegulation 92B Guidance on additional own fundsRegulation 92C Cooperation with resolution authoritiesRegulation 93 Specific liquidity requirementsRegulation 94 Specific publication requirementsRegulation 95 Consistency of supervisory reviews, evaluations and supervisory measuresLevel of application (regs. 96-98)Regulation 96 Internal capital adequacy assessment processRegulation 97 Institutions' arrangements, processes and mechanismsRegulation 98 Review and evaluation and supervisory measuresChapter 3 Supervision on a consolidated basis (regs. 99-114)Principles for conducting supervision on a consolidated basis (regs. 99-106)Regulation 99 Determination of consolidating supervisorRegulation 100 Coordination of supervisory activities by consolidating supervisorRegulation 101 Joint decisions on institution-specific prudential requirementsRegulation 102 Information requirements in emergency situationsRegulation 103 Coordination and cooperation arrangementsRegulation 104 Colleges of supervisorsRegulation 105 Cooperation obligationsRegulation 106 Checking information concerning entities in other Member StatesFinancial holding companies, mixed-financial holding companies and mixedactivity holding companies (regs. 107-114)Regulation 107 Inclusion of holding companies in consolidated supervisionRegulation 108 Supervision of mixed-financial holding companiesRegulation 109 Qualification of directorsRegulation 110 Requests for information and inspectionsRegulation 111 SupervisionRegulation 112 Exchange of informationRegulation 113 CooperationRegulation 114 Assessment of equivalence of third countries' consolidated supervisionChapter 4 Capital Buffers (regs. 115-130)Buffers (regs. 115-124)Regulation 115 DefinitionsRegulation 116 Non-application of Chapter to certain investment firmsRegulation 116A Restrictions on use of Common Equity Tier 1 Capital maintained to meet the combined buffer requirementRegulation 117 Requirement to maintain a capital conservation bufferRegulation 118 Requirement to maintain institution-specific countercyclical capital bufferRegulation 119 Transitional provisions for capital buffersRegulation 120 Derogation from requirement to maintain certain buffersRegulation 121 Global and other systemically important institutionsRegulation 122 Identification of O-SIIsRegulation 123 G-SII and O-SII buffersRegulation 123A Designation of authority for the systemic risk bufferRegulation 123B Power to set systemic risk bufferRegulation 123C Calculation of systemic risk bufferRegulation 123D Systemic risk buffer of Common Equity Tier 1 capitalRegulation 123E Exposures to which systemic risk buffer may applyRegulation 123F Systemic risk buffer requirementsRegulation 123G Obligations on BankRegulation 123H Notification prior to publication of decision under Regulation 123LRegulation 123I Notification: SyRB less than 3 per centRegulation 123J Notification: SyRB between 3 and 5 per centRegulation 123K Notification: SyRB above 5 per centRegulation 123L Publication of SyRBs on websiteRegulation 123M Additional measuresRegulation 123N Exposures in another Member StateRegulation 124 Recognition of systemic risk buffer rateSetting and calculating countercyclical capital buffers (regs. 125-128)Regulation 125 Setting countercyclical buffer ratesRegulation 126 Recognition of countercyclical buffer rates in excess of 2.5 per centRegulation 127 Decision by Bank on third-country countercyclical buffer ratesRegulation 128 Calculation of institution-specific countercyclical capital buffer ratesCapital conservation measures (regs. 129-130)Regulation 129 Restrictions on distributionsRegulation 129A Failure to meet combined buffer requirementRegulation 129B Restriction on distributions in case of failure to meet leverage ratio buffer requirementRegulation 129C Failure to meet leverage ratio buffer requirementRegulation 130 Capital conservation planPart 7 Disclosure by competent authorities (regs. 131-132)Regulation 131 General disclosure requirementsRegulation 132 Specific disclosure requirementsPart 8 Transitional provisions (regs. 133-142)Chapter 1 Transitional provisions on the supervision of institutions exercising the freedom of establishment and the freedom to provide services (regs. 133-142)Regulation 133 Reporting requirements - transitionalRegulation 134 Measures taken by competent authorities of home Member State in relation to activities carried out in host Member State - transitionalRegulation 135 Precautionary measures - transitionalRegulation 136 Responsibility of Bank - transitionalRegulation 137 Liquidity supervision - transitionalRegulation 138 Collaboration concerning supervision - transitionalRegulation 139 Designation of significant branches - transitionalRegulation 140 Designation of branch of an institution in another Member State as significant - transitionalRegulation 141 Bank to establish college of supervisors for significant branches - transitionalRegulation 142 On-the-spot checks - transitionalRegulation 142A Transitional provisions on approval of financial holding companies and mixed financial holding companiesPart 9 Provisions from statutory instruments revoked by these Regulations (regs. 143-152)Regulation 143 Application of certain enactmentsRegulation 144 Bank not to be liable for losses incurred through insolvency or default of persons subject to supervision under these RegulationsRegulation 145 Bank to consult competent authorities of other Member States in certain circumstancesRegulation 146 Provision of services into another Member StateRegulation 147 Offence of providing false or misleading information - Regulations 10 to 25Regulation 148 Provision of false or misleading information - generalRegulation 149 Prosecution by BankRegulation 150 Offences by bodies corporateRegulation 151 Continuation of contravention of RegulationsRegulation 152 Construction of licence holder in enactmentsPart 10 Consequential Amendments (regs. 153-158)Regulation 153 Amendment of Central Bank Act 1942Regulation 154 Amendment of Central Bank Act 1971Regulation 155 Amendment of Central Bank Act 1989Regulation 156 Amendment of Building Societies Act 1989Regulation 157 Amendment of Trustee Savings Banks Act 1989Regulation 158 Amendment of Central Bank Act 1997Part 11 Final provisions, revocations and saver (regs. 159-162)Regulation 159 Service of notice or other document by BankRegulation 160 References to repealed DirectivesRegulation 161 RevocationsRegulation 162 SaverScheduleGiven under
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Regulation 61 Internal governance and recovery plans
(1) Institutions shall put in place and maintain robust governance arrangements, which include the following:
(a) a clear organisational structure with well-defined, transparent and consistent lines of responsibility;
(b) effective processes to identify, manage, monitor and report the risks they are, or might be, exposed to;
(c) adequate internal control mechanisms, including but not limited to -
(i) sound administration and accounting procedures, and
(ii) remuneration policies and practices that are consistent with and promote sound and effective risk management.
(1A) The remuneration policies and practices referred to in paragraph (1)(c)(ii) shall be gender neutral.
(2) The Bank may direct an institution in writing to furnish to it, within a period specified in the direction, such information in relation to the arrangements, referred to in paragraph (1), as the Bank may require and the institution shall comply with that direction.
(3) The governance arrangements, processes and mechanisms, referred to in paragraph (1) shall -