Circular CSSF 18/682 is a CSSF circular, published 5 February 2018 and updated 24 June 2022. Subject: Adoption of the Guideline (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) and of the Recommendation 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). It was repealed by Circular CSSF 22/816.
\nLegal basis: Law of 5 April 1993 on the financial sector.
\nRelevant for: Credit institutions.
\nIn case of discrepancies between the French and the English text, the French text shall prevail. Luxembourg, 5 February 2018 To less significant institutions within the meaning of Article 6(4) of Council Regulation (EU) No 1024/2013
\nCIRCULAR CSSF 18/682 Re : Adoption of the Guideline (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) and of the Recommendation 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) Ladies and Gentlemen, The purpose of this circular is to draw attention to the entry into force of: - the Guideline (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) 1 (“Guideline”) ; - the Recommendation 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) 2 (“Recommendation”). This circular relates exclusively to the exercise of options and discretions regarding less significant institutions within the meaning of Article 6(4) of Council Regulation (EU) No 1024/2013 3 (“SSM Regulation”). The CSSF hereby informs the institutions concerned 1
\nThe Guideline is annexed to this circular. It is also available https://www.ecb.europa.eu/ecb/legal/pdf/celex_32017o0009_en_txt.pdf 2 The Recommendation is annexed to this circular. It is also available at: https://www.ecb.europa.eu/ecb/legal/pdf/ond_lsi_recommendation_201704.en.pdf 3 Council Regulation (EU) n° 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions. CSSF Circular 18/682
\nthat it intends to comply with the Guideline and the Recommendation as of 1 January 2018, except for Article 7 of the Guideline which applies from 1 January 2019. The provisions of the Guideline and of the Recommendation do not affect the provisions of CSSF Regulation N°14-01 on the implementation of certain discretions of Regulation (EU) No 575/2013 (“CSSF Regulation 14-01”). As such, with respect to the exemption to the large exposure limitation, the CSSF will continue to make use, as provided in Article 6(f) of the Guideline, of: -
\nthe national discretion of Article 493(3)(c) of Regulation (EU) No 575/2013 (“CRR”) 4 which is made use of in Article 56-1 of the Law of 5 April 1993 on the financial sector regarding group exemption relating to large exposures;
\nthe other national discretions of Article 493(3) of the CRR which are made use of in Article 19 of CSSF Regulation 14-01.
\nThis CSSF circular shall apply with immediate effect. Yours faithfully, COMMISSION de SURVEILLANCE du SECTEUR FINANCIER
\nRegulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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