As the first element in the Banking Union, the Single Supervisory Mechanism (SSM) will become operative in November 2014. The SSM, established by Council Regulation (EU) 1024/2013 (SSMR), is the first pillar of the Banking Union centralising the supervision of significant credit institutions at the European Central Bank (ECB). The two other pillars of the Banking Union are the Single Resolution Mechanism (SRM), which includes the Single Resolution Fund, and, potentially, a common deposit guarantee scheme.
The SSMR delegates legislative powers to the ECB to lay down more detailed rules on the performance of its tasks under the SSMR. In particular the ECB is required to establish a »framework« to organise the practical arrangements for the cooperation between the ECB and the national competent authorities (NCAs) within the SSM. The ECB adopted the SSM Framework Regulation (SSMFR) on 16 April 2014. It was published in the Official Journal on 14 May 2014 and took effect on 15 May 2014. The SSMFR is the main ECB legal act complementing the SSMR. It provides detailed rules on important matters such as the organisational set-up of the SSM, the administrative procedure to be followed by the ECB, the cooperation between the ECB and NCAs, as well as procedures for the imposition of sanctions. In addition to the SSMR, the SSMFR is therefore the main legal instrument that supervised entities and NCAs will have to consult in their day-to-day dealings within the SSM.
Detailed information on various aspects of the SSM and, in particular, the SSMFR is provided in the attached four briefings on the SSMFR:
- Part 1: Overview and organisational aspects
- Part 2: Administrative procedure, legal remedies and transitional provisions
- Part 3: Cross-border matters (freedom to provide services and right of establishment)
- Part 4: Investigatory measures and sanctioning powers
The series may be continued in the future.