Competence Sharing Between the ECB and the National Competent Supervisory Authorities Within the Single Supervisory Mechanism (SSM)

Within the framework of the newly established Single Supervisory Mechanism (SSM), which has been in operation since 4 November 2014, the European Central Bank (ECB) cooperates with the national competent authorities (NCAs) of euro area Member States as regards the specific (supervisory) tasks conferred upon it concerning policies relating to the prudential supervision of credit institutions and other supervised entities. This Article briefly presents the SSM framework (see below under 1) and then analyses the sharing of competences between the ECB and NCAs with regard to ‘significant’ and ‘less significant’ credit institutions, financial holding companies and mixed financial holding companies (under 2). This presentation and analysis are based on the provisions of the legal acts which govern the SSM’s operation. © 2015, T.M.C. Asser Press

The Administrative Board of Review of the European Central Bank: Experience After 2 Years

This article examines the administrative remedy provided by the Administrative Board of Review (ABoR) of the European Central Bank (ECB), as part of the broader issue of the right of defence of natural and legal persons vis-à-vis ECB supervisory decisions within the Single Supervisory Mechanism (SSM). After presenting an overview of the review panels established in the financial sector in the EU, the article describes the experience with the ABoR by analysing its composition, its mandate and scope of review, the main procedural aspects and the relationship with judicial proceedings before the European Court of Justice. Particular attention is given to the substantial issues dealt with by the ABoR in its Opinions and to some of the major challenges faced in the first 2 years of practice. Among them is the assessment of the correct application of national laws implementing EU legislation by the ECB. The paper identifies two aspects giving particular cause for concern and requiring legislative reforms: (1) the assessment of the suitability of the members of management bodies (fit and proper assessment) and (2) the inclusion of bank holding companies within the scope of banking supervision