Single Supervisory Mechanism Governance and Decision-making Process
Learn about the governance structure of the Single Supervisory Mechanism (SSM) including the key features of the Administrative Board of Review (ABoR) and its role in the decision-making process. Understand how the European Central Bank (ECB) considers the opinions of the ABoR in its supervisory decisions, ensuring transparency and accountability within the SSM framework.
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Presentation Transcript
La governance del Single Supervisory Mechanism Prof.ssa Concetta Brescia Morra Vice-chair Administrative Board of Review Roma, 2018
ECB-RESTRICTED 1. Key features of the ABoR It carries out an internal administrative review of ECB supervisory decisions. Without prejudice to the right to bring proceedings before the Court. The members of the ABoR shall not be staff of the ECB or a NCA and it shall act independently and in the public interest . 3 www.bankingsupervision.europa.eu
ECB-RESTRICTED 1. Key features of the ABoR: basics Check completeness and admissibility, organise access to file ABoR opinion must be issued promptly, no later than 2 months after receipt of request for review ECB supervisory decision can be contested before ABoR within 1 month of its notification ABoR Chair appoints a case-rapporteur Decision of direct and individual concern New decision (i) of identical content or (ii) abrogating or amending initial decision ABoR opinion non- binding on Supervisory Board and Governing Council Examination of the case and hearing of applicant Approval by the SB and adoption by the Governing Council Deliberation phase: draft and vote in full independence Investigation phase: expertise (legal, NCA) 4
ECB-RESTRICTED 2. ABoR role in SSM decision-making process ABoR opinions are not binding but the Supervisory Board shall take them into account and shall in any case promptly submit a new draft decision to the Governing Council. (Article 24(7) SSM Regulation) The opinion must propose whether the initial decision should be abrogated, replaced with a decision of identical content or replaced with an amended decision. In the latter case, the opinion should contain proposals for the necessary amendments (Article 16(2) of ECB/2014/16) The new draft decision abrogates the initial decision. 5 www.bankingsupervision.europa.eu
ECB-RESTRICTED 2. ABoR role in SSM decision-making process According to General Court (Case T-122/15, 16 May 2017): a reading of the contested decision, read in the light of the Administrative Board of Review s Opinion, shows that the ECB considered that the application of Article 70(1) of SSM Framework Regulation could lead (par. 34) In the present case, the ABoR opinion is parte of the context of which the contested decision forms a part and may, therefore, be taken into account for the purpose of determining whether that decision contained a sufficient statement of reasons (par. 125) in so far the contested decision (the ECB decision) ruled in conformity with the proposal set out in the Administrative Board of Review s Opinion, it is an extension of that opinion and the explanations contained therein may be taken into account for the purpose pf determining whether the contested decision contains a sufficient statement of reason (par. 127) 6 www.bankingsupervision.europa.eu
ECB-RESTRICTED 3. The scope of the ABoR review Scope Limitation Procedural and substantive conformity with SSM Regulation Examination only based on the reasons stated in the notice of review 7 www.bankingsupervision.europa.eu
ECB-CONFIDENTIAL 3. The scope of the ABoR review When the decision taken by the ECB involves a margin of discretion, the ABoR should respect the margin of discretion left to the ECB to decide on the opportunity to take those decisions (Recital 64 SSM Regulation) In this case the review will be confined to whether the: procedural requirements were complied with the statement of reasons is sufficient; the facts were correctly set out; there was any manifest error of assessment; there was a misuse of powers establishing a manifest error or misuse of powers or clear exceedance of the bounds of discretion ABoR checks compliance with proportionality principle 8 www.bankingsupervision.europa.eu
General process for requests, notifications and application www.bankingsupervision.europa.eu
C Common procedures www.bankingsupervision.europa.eu
Functioning of the Joint Supervisory Teams www.bankingsupervision.europa.eu
