As I have previously stated, the European Central Bank (ECB) has responsibility for the direct prudential supervision of significant credit institutions (Significant Institutions) within participating member states whose currency is the euro. The ECB is competent to take direct sanctioning proceedings against Significant Institutions, under the framework set down by the Single Supervisory Mechanism Framework Regulation (EU) No 468/2014 (SSMFR) and Single Supervisory Mechanism Council Regulation (EU) No 1024/2013 (SSMR), in respect of breaches of directly applicable EU law, including relevant breaches committed prior to 4 November 2014.
The ECB may also instruct the Central Bank to open proceedings against Significant Institutions, pursuant to Article 18(5) of the SSMR, including relevant breaches committed prior to 4 November 2014. Where a change in competence between the ECB and the Central Bank is to take place (e.g. where a Less Significant Institution is reclassified as a Significant Institution) Article 48 of the SSMFR provides for the manner in which pending procedures (including the imposition of administrative pecuniary penalties) are to be dealt with.
The Central Bank retains responsibility for the supervision activities defined in the SSMR as non-core (e.g. anti-money laundering, consumer protection).
