ECB Regulation (for SIs) and ECB Guideline (for LSIs)
As the competent authority for significant institutions (SIs), the ECB has exercised a number of options and discretions available in Union law, under Regulation (EU) 2016/4451. This ECB Regulation applies from 1 January 2016 or, as applicable, from 1 January 2019.
From this Regulation, while taking due account of the principle of proportionality, the ECB has identified certain options and discretions which should be exercised in the same way by national competent authorities (NCAs) in the supervision of LSIs. To this end, the ECB, on 13 April 2017, published a Guideline on the exercise of options and discretions available in Union law for less significant institutions2.
As the NCA for LSIs established in the Netherlands, DNB will apply this ECB Guideline in the exercise of the relevant options and discretions in the supervision of Dutch LSIs. DNB will comply with this ECB Guideline from 1 January 2018, except for Article 73 with which DNB will comply from 1 January 2019.
ECB Guide (for SIs) and ECB Recommendation (for LSIs)
In addition, in its guide of November 2016 on options and discretions available in Union law (ECB Guide), the ECB sets out a common set of specifications for the exercise on a case-by-case basis of certain other options in the supervision of SIs, following individual assessment of applications by such SIs.
In order to foster a common supervisory approach by NCAs in assessing individual applications by LSIs, the ECB, on 13 April 2017, adopted a Recommendation on common specifications for the exercise of some options and discretions available in Union law for LSIs4. For two specific options and discretions5 the ECB recommends a specific approach in relation to LSIs.
DNB will apply this ECB Recommendation in individual assessments of the relevant options in the supervision of Dutch LSIs, with immediate effect from 13 April 2017.
1Regulation (EU) 2016/445 of the European Central Bank of 14 March 2016 on the exercise of options and discretions available in Union law (ECB/2016/4) (OJ L 78, 24.3.2016, p. 60).
2Guideline (EU) 2017/697 of the European Central Bank of 4 April 2017 on the exercise of options and discretions available in Union law by national competent authorities in relation to less significant institutions (ECB/2017/9) (OJ L 101, 13.4.2017, p. 156).
3Article 7 relates to Article 24(4) and (5) of the Delegated Act on liquidity coverage requirement – DA LCR (Regulation (EU) 2015/61).
4Recommendation of the European Central Bank of 4 April 2017 on common specifications for the exercise of some options and discretions available in Union law by national competent authorities in relation to less significant institutions (ECB/2017/10) (OJ C 120, 13.4.2017, p. 2).
5I.e. those provided for in Article 380 and Article 420(2) of Regulation (EU) 575/2013 (CRR).
