Circular CSSF 22/816 is a CSSF circular, published 24 June 2022. Subject: Adoption of Guideline (EU) 2022/508 of the European Central Bank of 25 March 2022 (ECB/2022/12) and of the Recommendation of the European Central Bank of 25 March 2022 (ECB/2022/13) regarding the exercise of some options and discretions available in Union law by national competent authorities.
\nLegal basis: Law of 5 April 1993 on the financial sector.
\nRelevant for: Credit institutions, Investment firms.
\nKeywords: Capital requirement, Liquidity.
\nRepeals Circular CSSF 18/682.
\nCircular CSSF 22/816 Adoption of Guideline (EU) 2022/508 of the European Central Bank of 25 March 2022 (ECB/2022/12) and of the Recommendation of the European Central Bank of 25 March 2022 (ECB/2022/13) regarding the exercise of some options and discretions available in Union law by national competent authorities
\nCircular CSSF 22/816 Re: Adoption of Guideline (EU) 2022/508 of the European Central Bank of 25 March 2022 (ECB/2022/12) and of the Recommendation of the European Central Bank of 25 March 2022 (ECB/2022/13) regarding the exercise of some options and discretions available in Union law by national competent authorities
\nLuxembourg, 24 June 2022
\nPurpose of the Circular
\nTo all credit institutions
\nThe purpose of this circular is to inform you of the publication of:
\ndesignated as Less Significant Institutions under the Single Supervisory Mechanism, to all CRR investment firms, and to all Luxembourg branches of credit institutions and of CRR
\nGuideline
\n(EU)
\nthe
\nEuropean
\nCentral
\nBank
\nof 25 March 2022 amending Guideline (EU) 2017/697 of the European Central Bank on the exercise of options and discretions available in Union law by national competent authorities in relation to less significant institutions (ECB/2022/12) 1 (the Guideline);
\ninvestment firms having their
\nregistered office in a third
\namending Recommendation ECB/2017/10 on common specifications for the
\ncountry
\nexercise of some options and discretions available in Union law by national competent authorities in relation to less significant institutions (ECB/2022/13) 2 (the Recommendation). Background Regulation (EU) No 575/2013 (CRR) and Delegated Regulation (EU) 2015/61 contain a number of options and discretions available to national competent authorities in the course of their supervision.
\nThe Guideline and the
\nRecommendation contain specifications of the ECB on how those options and discretions should be applied with respect to less significant institutions. The CSSF extends the application of the Guideline and the Recommendation to all CRR investment firms as well as to all Luxembourg branches of credit institutions or CRR investment firms incorporated in a third country.
\nThe Guideline is annexed to this circular. A consolidated version of the Guideline (EU) 2017/697 as amended by the Guideline (EU) 2022/508 is available at https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX%3A02017O0009-20220331 2
\nThe Recommendation is annexed to this circular. It is also available at https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=OJ%3AJOC_2022_142_R_0001&qid=1648623152665
\nThe Guideline The Guideline amends Guideline (EU) 2017/697 of the ECB, which has been implemented in CSSF Regulation No 18-03 3. CSSF Regulation No 18-03 will be amended to implement the Guideline. With respect specifically to the exemption to the large exposure limitation, the CSSF would like to recall, as already indicated in Circular CSSF 18/682, that it continues to make use, as provided in Article 6(f) of Guideline (EU) 2017/697 (as amended by the Guideline), of: -
\nthe national discretion of Article 493(3)(c) of the CRR which is embedded 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 5 of CSSF Regulation No 18-03.
\nThe CSSF intends to apply the Guideline as of 1 October 2022. The Recommendation The Recommendation amends Recommendation ECB/2017/10 and is addressed only to national competent authorities. As such it provides transparency on how the CSSF will apply the relevant options and discretions. The CSSF applies the Recommendation with immediate effect.
\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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