Table of Contents
Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM Framework Regulation) (ECB/2014/17)RecitalsPart I General Provisions (arts. 1-2)Article 1 Subject matter and purposeArticle 2 DefinitionsPart II Organisation of the SSM (art. 3-18)Title 1 Structures for the supervision of significant and less significant supervised entities (arts. 3-7)Chapter 1 Supervision of significant supervised entities (arts. 3-6)Article 3 Joint supervisory teamsArticle 4 Establishment and composition of joint supervisory teamsArticle 5 Involvement of staff members from NCBs of participating Member StatesArticle 6 JST coordinator and sub-coordinatorsChapter 2 Supervision of less significant supervised entities (art. 7)Article 7 Involvement of staff members from other NCAs in an NCA's supervisory teamTitle 2 Supervision on a consolidated basis and participation of the ECB and NCAs in colleges of supervisors (arts. 8-10)Article 8 Supervision on a consolidated basisArticle 9 The ECB as chair of a college of supervisorsArticle 10 The ECB and NCAs as members of a college of supervisorsTitle 3 Procedures for the right of establishment and freedom to provide services (arts. 11-17)Chapter 1 Procedures for the right of establishment and freedom to provide services within the SSM (arts. 11-12)Article 11 Right of establishment of credit institutions within the SSMArticle 12 Exercise of the freedom to provide services by credit institutions within the SSMChapter 2 Procedures for the right of establishment and freedom of credit institutions established in non-participating Member States to provide services within the SSM (arts. 13-16)Article 13 Notification of the exercise of the right of establishment within the SSM by credit institutions established in non-participating Member StatesArticle 14 Competent authority of the host Member State for branchesArticle 15 Notification of the exercise of the freedom to provide services within the SSM by credit institutions established in non-participating Member StatesArticle 16 Competent authority of the host Member State for freedom to provide servicesChapter 3 Procedures for the right of establishment and freedom to provide services in relation to non-participating Member States (art. 17)Article 17 Right of establishment and exercise of the freedom to provide services in relation to non-participating Member StatesTitle 4 Supplementary supervision of financial conglomerates (art. 18)Article 18 CoordinatorPart III General provisions applying to the operation of the SSM (arts. 19-38)Title 1 Principles and obligations (arts. 19-24)Article 19 OverviewArticle 20 Duty to cooperate in good faithArticle 21 General obligation to exchange informationArticle 22 Right of the ECB to instruct NCAs or NDAs to make use of their powers and to take action if the ECB has a supervisory task but no related powerArticle 23 Language regime between the ECB and NCAsArticle 24 Language regime between the ECB and legal or natural persons, including supervised entitiesTitle 2 General provisions relating to due process for adopting ECB supervisory decisions (arts. 25-35)Chapter 1 ECB supervisory procedures (arts. 25-32)Article 25 General principlesArticle 26 PartiesArticle 27 Representation of a partyArticle 28 General obligations of the ECB and parties to an ECB supervisory procedureArticle 29 Evidence in ECB supervisory proceduresArticle 30 Witnesses and experts in ECB supervisory proceduresArticle 31 Right to be heardArticle 32 Access to files in an ECB supervisory procedureChapter 2 ECB supervisory decisions (arts. 33-35)Article 33 Motivation of ECB supervisory decisionsArticle 34 Suspensory effectArticle 35 Notification of ECB supervisory decisionsTitle 3 Reporting of breaches (arts. 36-38)Article 36 Reporting of breachesArticle 37 Appropriate protection for reports of breachesArticle 38 Procedures for the follow-up of reportsPart IV Determining the status of a supervised entity as significant or less significant (arts. 39-72)Title 1 General provisions relating to the classification as significant or less significant (arts. 39-42)Article 39 Classifying a supervised entity on an individual basis as significantArticle 40 Classifying supervised entities which are part of a group as significantArticle 41 Specific provisions in respect of branches of credit institutions established in non-participating Member StatesArticle 42 Specific provisions in respect of subsidiaries of credit institutions established in non-participating Member States and third countriesTitle 2 Procedure for classifying supervised entities as significant supervised entities (arts. 43-49)Chapter 1 Classifying a supervised entity as significant (arts. 43-44)Article 43 Review of the status of a supervised entityArticle 44 Procedure to be applied in determining the significance of a supervised entityChapter 2 Beginning and end of direct supervision by the ECB (arts. 45-48)Article 45 Beginning of direct supervision by the ECBArticle 46 End of direct supervision by the ECBArticle 47 Reasons for ending direct supervision by the ECBArticle 48 Pending proceduresChapter 3 List of supervised entities (art. 49)Article 49 PublicationTitle 3 Determining significance on the basis of size (arts. 50-55)Article 50 Determining significance on the basis of sizeArticle 51 Basis for determining whether or not a supervised entity is significant on the basis of sizeArticle 52 Basis for determining significance on the basis of size in specific or exceptional circumstancesArticle 53 Groups of consolidated undertakingsArticle 54 Method of consolidationArticle 55 Method for calculating total assetsTitle 4 Determining significance on the basic of importance for the economy of the Union or any participating Member State (arts. 56-58)Article 56 National economic importance thresholdArticle 57 Criteria for determining significance on the basis of importance for the economy of the Union or any participating Member StateArticle 58 Determining significance on the basis of importance for the economy of any participating Member State at the request of an NCATitle 5 Determining significance on the basis of the significance of cross-border activities (arts. 59-60)Article 59 Criteria for determining significance on the basis of the significance of cross-border activities of a supervised groupArticle 60 Cross-border assets and liabilitiesTitle 6 Determining significante on the basic of a request for or the receipt of public financial assistance from the ESM (arts. 61-64)Article 61 Request for or receipt of direct public financial assistance from the ESMArticle 62 Obligation of NCAs to inform the ECB of a possible request for or receipt of public financial assistance by a less significant supervised entityArticle 63 Beginning and end of direct supervisionArticle 64 ScopeTitle 7 Determining significance on the basis that the supervised entity is one of the three most significant credit institutions in a participating Member State (arts. 65-66)Article 65 Criteria for determining the three most significant credit institutions in a participating Member StateArticle 66 Review processTitle 8 ECB decision to directly supervise less significant supervised entities pursuant to article 6(5)(b) of the SSM regulation (arts. 67-69)Article 67 Criteria for an ECB decision pursuant to Article 6(5)(b) of the SSM RegulationArticle 68 Procedure for preparing an ECB decision pursuant to Article 6(5)(b) of the SSM Regulation at the request of an NCAArticle 69 Procedure for preparing ECB decisions pursuant to Article 6(5)(b) of the SSM Regulation on the ECB's own initiativeTitle 9 Particular circumstances that may justify the classification of a supervised entity as less significant although the criteria for classification as significant are fulfilled ( arts. 70-72)Article 70 Particular circumstances leading to the classification of a significant supervised entity as less significantArticle 71 Assessment of the existence of particular circumstancesArticle 72 ReviewPart V Common procedures (arts. 73-88)Title 1 Cooperation with regard to an application for an authorisation to take up the business of a credit institution (arts. 73-79)Article 73 Notification of the ECB of an application for an authorisation to take up the business of a credit institutionArticle 74 NCAs' assessment of applicationsArticle 75 NCAs' decisions rejecting an applicationArticle 76 NCAs' draft decisions on the authorisation to take up the business of a credit institutionArticle 77 ECB's assessment of applications and hearing of applicantsArticle 78 ECB decisions on applicationsArticle 79 Procedure for the lapsing of the authorisationTitle 2 Cooperation with regard to the withdrawal of an authorisation (arts. 80-84)Article 80 NCAs' proposal to withdraw an authorisationArticle 81 ECB's assessment of a draft withdrawal decisionArticle 82 Assessment on the ECB's own initiative and consultation of NCAsArticle 83 ECB decision on the withdrawal of an authorisationArticle 84 Procedure in case of potential resolution measures to be taken by national authoritiesTitle 3 Cooperation with regard to the acquisition of qualifying holdings (arts. 85-87)Article 85 Notification to NCAs of the acquisition of a qualifying holdingArticle 86 Assessment of potential acquisitionsArticle 87 ECB decision on acquisitionTitle 4 Notification of decisions on common procedures (art. 88)Article 88 Procedures for notification of decisionsPart VI Procedures for the supervision of significant supervised entities (arts. 89-95)Title 1 Supervision of significant supervised entities and assistance by NCAs (arts. 89-92)Article 89 Supervision of significant supervised entitiesArticle 90 Role of the NCAs in assisting the ECBArticle 91 Draft decisions to be prepared by NCAs for the ECB's considerationArticle 92 Exchange of informationTitle 2 Compliance with fit and proper requirements for persons responsible for managing credit institutions (arts. 93-94)Article 93 Assessment of the suitability of members of the management bodies of significant supervised entitiesArticle 94 On-going review of managers' suitabilityTitle 3 Other procedures to be applied by significant supervised entities (art. 95)Article 95 Requests, notifications or applications by significant supervised entitiesPart VII Procedures for the supervision of less significant supervised entities (arts. 96-100)Title 1 NCAs' Notification to the ECB of material NCA supervisory procedures and material draft supervisory decision (arts. 96-98)Article 96 Deterioration of the financial situation of a less significant supervised entityArticle 97 NCAs' notification to the ECB of material NCA supervisory proceduresArticle 98 Notification by NCAs to the ECB of material draft supervisory decisionsTitle 2 Ex-post reporting by NCAs to the ECB regarding less significant supervised entities (arts. 99-100)Article 99 General obligation of NCAs to report to the ECBArticle 100 Frequency and scope of reports to be submitted by NCAs to the ECBPart VIII Cooperation between the ECB, NCAs and NDAs with regard to macro-prudential tasks and tools (arts. 101-105)Title 1 Definition of macro-prudential tools (arts. 101-102)Article 101 General provisionsArticle 102 Application of macro-prudential tools by the ECBTitle 2 Procedural provisions for the use of macro-prudential tools (arts. 103-105)Article 103 List of NCAs and NDAs responsible for macro-prudential toolsArticle 104 Exchange of information and cooperation in respect of the use of macro-prudential tools by an NCA or an NDAArticle 105 Exchange of information and cooperation in respect of the ECB's use of macro-prudential toolsPart IX Procedures for close cooperation (arts. 106-119)Title 1 General principles and common provisions (arts. 106-108)Article 106 Procedure for the establishment of a close cooperationArticle 107 Principles to be applied when a close cooperation has been establishedArticle 108 Legal instruments related to supervision in connection with close cooperationTitle 2 Close cooperation in relation to Parts III, IV, V, VIII, X and XI (arts. 109-114)Article 109 Language regime under the regime of close cooperationArticle 110 Assessment of significance of credit institutions under the regime of close cooperationArticle 111 Common procedures under the regime of close cooperationArticle 112 Macro-prudential tools under the regime of close cooperationArticle 113 Administrative penalties under the regime of close cooperationArticle 114 Investigatory powers pursuant to Articles 10 to 13 of the SSM Regulation under the regime of close cooperationTitle 3 Close cooperation in respect of significant supervised entities (arts. 115-116)Article 115 Supervision of significant supervised entities in a participating Member State in close cooperationArticle 116 Decisions in respect of significant supervised entities and significant supervised groupsTitle 4 Close cooperation in respect of less significant supervised entities and less significant supervised groups (art. 117)Article 117 Supervision of less significant supervised entities and less significant supervised groupsTitle 5 Procedure in case of disagreement of a participating Member State in close cooperation (arts. 118-119)Article 118 Procedure in case of disagreement with the Supervisory Board's draft decision pursuant to Article 7(8) of the SSM RegulationArticle 119 Procedure in case of disagreement with an objection of the Governing Council to a Supervisory Board's draft decision pursuant to Article 7(7) of the SSM RegulationPart X Administrative penalties (arts. 120-137)Title 1 Definitions and relationship to Council Regulation (EC) No 2532/98 (arts. 120-122)Article 120 Definition of administrative penaltiesArticle 121 Relationship to Regulation (EC) No 2532/98Article 122 ECB powers to impose administrative penalties under Article 18(7) of the SSM RegulationTitle 2 Procedural rules for the imposition of administrative penalties, other than periodic penalty payments, on supervised entities in euro area Member States (arts. 123-128)Article 123 Establishment of an independent investigating unitArticle 124 Referral of alleged breaches to the investigating unitArticle 125 Powers of the investigating unitArticle 126 Procedural rightsArticle 127 Examination of the file by the Supervisory BoardArticle 128 Definition of total annual turnover for the purpose of determining the upper limit for administrative pecuniary penaltiesTitle 3 Periodic penalty payments (art. 129)Article 129 Procedural rules applicable to periodic penalty paymentsTitle 4 Time limits (arts. 130-131)Article 130 Limitation periods for imposing administrative penaltiesArticle 131 Limitation periods for the enforcement of administrative penaltiesTitle 5 Publication of decisions and exchange of information (arts. 132-133)Article 132 Publication of decisions regarding administrative penaltiesArticle 133 Informing the EBATitle 6 Cooperation between the ECB and NCAs in euro area Member States under article 18(5) of the SSM Regulation (arts. 134-135)Article 134 Significant supervised entitiesArticle 135 Reporting in respect of less significant supervised entitiesTitle 7 Criminal offences (art. 136)Article 136 Evidence of facts potentially giving rise to a criminal offenceTitle 8 Proceeds from penalties (art. 137)Article 137 Proceeds from penaltiesPart XI Access to information, reporting, investigations and on-site inspections (arts. 138-146)Title 1 General principles (art. 138)Article 138 Cooperation between the ECB and NCAs as regards the powers referred to in Articles 10 to 13 of the SSM RegulationTitle 2 Cooperation in respect of requests for information (art. 139)Article 139 Ad-hoc requests for information under Article 10 of the SSM RegulationTitle 3 Reporting (arts. 140-141)Article 140 Tasks related to supervisory reporting to competent authoritiesArticle 141 Requests for information at recurring intervals under Article 10 of the SSM RegulationTitle 4 Cooperation with regard to general investigations (art. 142)Article 142 Launch of a general investigation under Article 11 of the SSM RegulationTitle 5 On-site inspections (arts. 143-146)Article 143 ECB decision to conduct an on-site inspection under Article 12 of the SSM RegulationArticle 144 Establishment and composition of on-site inspection teamsArticle 145 Procedure and notification of an on-site inspectionArticle 146 Conduct of the on-site inspectionsPart XII Transitional and final provisions (arts. 147-153)Article 147 Start of direct supervision by the ECB when the ECB assumes its tasks for the first timeArticle 148 Defining the format of the report on supervisory history and risk profile to be provided by NCAs to the ECBArticle 149 Continuity of existing proceduresArticle 150 Supervisory decisions taken by NCAsArticle 151 Member States whose currency becomes the euroArticle 152 Continuity of existing arrangementsArticle 153 Final provisionsDone at
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Article 127 Examination of the file by the Supervisory Board
1. If an investigating unit considers that an administrative penalty should be imposed on a supervised entity, the investigating unit shall submit a proposal for a complete draft decision to the Supervisory Board, determining that the supervised entity concerned has committed a breach and specifying the administrative penalty to be imposed. The investigating unit shall also submit its file on the investigation to the Supervisory Board.
2. The investigating unit shall base its proposal for a complete draft decision only on facts and objections on which the supervised entity has had the opportunity to comment.
3. If the Supervisory Board considers that the file submitted by the investigating unit is incomplete, it may return the file to the investigating unit together with a reasoned request for additional information. Article 125 shall apply accordingly.
4. If the Supervisory Board, on the basis of a complete file, agrees with the proposal for a complete draft decision of the investigating unit in respect of one or more breaches and the factual basis for such decision, it shall adopt the complete draft decision proposed by the investigating unit regarding the breach or breaches it agrees have taken place. To the extent that the Supervisory Board does not agree with the proposal, a decision shall be taken pursuant to the relevant paragraphs of this Article.