Guidelines and Regulations
The Financial Stability Authority performs its tasks as provided for in the Act on the Resolution of Credit Institutions and Investment Firms and the Credit Institutions Act, and supervises compliance with the Acts together with the Financial Supervisory Authority. The Authority is also tasked with implementing decisions made by the Single Resolution Board (SRB) on the basis of the Regulation on the Single Resolution Mechanism. The Authority has to some extent regulatory powers and it can also make proposals and offer initiatives on the development of regulations and rules concerning resolution within the financial sector.
The Financial Stability Authority has the powers to apply and monitor the delegated acts adopted by the European Commission and the regulatory technical standards and implementing technical standards drafted by EBA on the basis of the Bank Regulation and Resolution Directive.
The Authority’s activities are also broadly guided by EBA’s guidelines. Article 16 of Commission Regulation 1093/2010 requires each competent authority to confirm, within 2 months of the issuance of a guideline or recommendation, whether it complies or intends to comply with that guideline or recommendation (so-called ‘comply or explain’ principle). When a guideline is addressed to the competent resolution authority, the Financial Stability Authority assesses the guideline’s content and submits EBA a compliance notification (including the Authority’s reasoning) as to whether or not it complies or intends to comply with the guideline. The EBA publishes on its website a compliance table, which indicates the compliance status of the individual Member States with respect to the guideline. It is possible that part of an EBA guideline is addressed to both the competent supervisory authority and the resolution authority. In such a case, both authorities will submit its own compliance notification.
The Authority also adheres to the instructions published by the Single Resolution Board, which aim to ensure harmonised application practices among national resolution authorities in the Banking Union. Such key instructions include manuals on resolution planning and implementation of resolution actions. Certain parts of the manuals are to be published on the Board’s website.