The Central Bank of Ireland (CBI) is consulting on proposed changes to its Implementation Notice (May 2025) regarding national competent authority options and discretions (O&Ds) arising under:
- the Capital Requirements Directive (CRD IV), as transposed in Ireland by the European Union (Capital Requirements) Regulations 2014
- the Capital Requirements Regulation
- Commission Delegated Regulation (EU) No. 2015/61
The proposed changes are connected to recent legislative developments, such as Directive (EU) 2024/1619 (CRD VI) and Regulation (EU) 2024/1623), and revisions made to the European Central Bank’s O&D framework, notably:
- Recommendation ECB/2025/26 amending Recommendation ECB/2017/10 on common specifications for the exercise of some options and discretions available in Union law by national competent authorities in relation to less significant institutions (LSI Recommendation).
- Guideline (EU) 2025/25 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.
The CBI explains that:
- A competent authority ‘option’ refers to a situation in which each competent authority is given a choice on how to comply with a given legislative provision, selecting from a range of alternatives set forth in EU legislation.
- A competent authority ‘discretion’ refers to a situation in which each competent authority is given a choice whether to apply or not to apply a given legislative provision in EU legislation.
In summary, the CBI is proposing to update its current Implementation Notice as follows:
- Revisions to the non-binding LSI Recommendation would be applied, in full, to less significant institutions.
- The existing approach in the Implementation Notice of exercising O&Ds in a harmonised manner (unless otherwise specified) with respect to credit institutions and ‘Class 1 minus’ investment firms would be maintained.
- Some proposed changes aim to streamline the Implementation Notice. For example, annexes would be removed, section 2 dealing with transitional arrangements would be removed and new sections would be added relating to the exercise of certain existing or new O&Ds (including those relevant to the issuance of covered bonds and the exercise of new CRD VI O&Ds applicable to third country branches).
- Following the repeal of the CBI’s 2016 ‘Policy Statement on Authorisation of Third Country Branches’, the Implementation Notice would contain the CBI’s existing policy position on retail deposit taking by third country branches.
The consultation period will close on 1 February 2027.
For further information on the changes under consultation, please contact Eoin O Connor, Partner, Patrick Brandt, Partner, Eimear O’Brien, Partner, Louise Hogan, Partner or Sarah Lee, Senior Practice Development Lawyer.
Date published: 12 November 2026
