#2014-1332Ordinance No. 2014-1332 on Adapting Legislation to the Single Supervisory Mechanism of Credit Institutions
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This ordinance modifies the French monetary and financial code to align with the European Central Bank's single supervisory mechanism for credit institutions. It affects how credit institutions are licensed, monitored, and potentially sanctioned, involving the ECB more directly in these processes. The practical impact is significant on banks and financial institutions operating in France, requiring them to adapt to changes in licensing and oversight procedures.
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Key Changes
- Increased involvement of ECB in credit institution licensing
- Direct ECB role in withdrawal of licensing
- Modifications to how financial institutions are sanctioned
Obligations
What this law requires
Credit institutions must obtain approval from the European Central Bank (on proposal of the Autorité de contrôle prudentiel et de résolution) before commencing their activities
Credit institutions must notify the Autorité de contrôle prudentiel et de résolution of any changes in capital distribution and obtain ECB approval for any direct or indirect acquisitions or extensions of participations
The Autorité de contrôle prudentiel et de résolution must request the European Central Bank to pronounce total withdrawal of authorization when a credit institution fails to meet conditions or engages in irregular conduct
Credit institutions seeking to withdraw their authorization must submit a formal request to the European Central Bank, which will determine the effective date of withdrawal
During the withdrawal period, credit institutions must indicate in any reference to their status that their authorization is in the process of being withdrawn