Page 1 of 5  ECB-PUBLIC  
 12 March 2015 
 FINAL 
  
Ethics Framework for the SSM 
Implementation practices 
 
1. Introduction  
The Governing Council has adopted on 12 March 2015 Guideline ECB/2015/12 laying down the 
principles of an Ethics Framework for the Single Supervisory Mechanism1. The principles laid down in 
Guideline ECB/2015/12 should be supplemented by a set of best practices on how to implement them. 
The purpose of these implementation practices is to give orientation to the ECB and the national 
competent authorities (NCAs) and to promote the harmonisation of the local rules and practices. 
Guideline ECB/2015/12, the current set of implementation practices and the internal rules and practices adopted by the ECB and the NCAs form together the Ethics Framework for the SSM.  
Against this background, the Governing Council has approved the current implementation practices.  
 
2. General 
Implementation practice No 1 concerning the role and responsibilities of the ECB’s and NCAs’ decision 
making bodies  
The ECB and the NCAs are recommended to define the role and responsibilities of the relevant decision-
making bodies as follows: (i) implementing the Ethics framework for the SSM by adopting local rules and practices, (ii) determining the corporate and ethics culture at local level (“tone from the top” and “leading by example”) and (iii) ensuring compliance with t he local rules by setting up a proper compliance 
framework at local level.  
 
Implementation practice No 2 concerning the role and responsibilities of the operational management 
                                                      
1   OJ L 135, 2.6.2015, p. 29 
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Page 2 of 5 The ECB and the NCAs are recommended to define the role and responsibilities of the operational 
management as follows: (i) applying the local rules within their area of responsibilities, (ii) contributing to 
the communication of the Ethics Framework for the SS M and to the awareness raising and (iii) fostering 
compliance (“leading by example”).  
 
Implementation practice No 3 concerning th e role and responsibilities of staff  
The ECB and the NCAs are recommended to specify in their local rules that staff is responsible for 
making themselves familiar with these rules and for complying with them. In case of doubt, they should 
proactively seek advice on the interpretation of the rules from the local compliance function. 
 
Implementation practice No 4 concerning the compliance function The ECB and the NCAs are recommended to define clearly the responsibilities of the local compliance 
function (which may be assigned to a self-standing unit or to different departments). The responsibilities of the compliance function could include (i) giving advice and guidance on the interpretation and application of the local rules, (ii) raising awarene ss and educating staff, (iii ) identifying and assessing 
compliance risks, (iv) monitoring and checking complia nce, (v) reporting of cases of non-compliance and 
possibly investigations and initiating the disciplinary follow-up, and (vi) steering or contributing to the drafting of the local rules and practices. When setti ng up the compliance function, the ECB and the NCAs 
are recommended to take account of the guiding principles concerning compliance and the compliance 
function in banks issued by the Basel Committee on Banking Supervision
2 and relevant 
international/European standards. The ECB and the NCAs should carefully consider the limits for outsourcing the compliance function taking into acco unt that this is a “core risk management activity”.   
 
Implementation practice No 5 concerning communication and awareness raising 
For the purpose of raising awareness, the ECB and the NCAs may for example use the following tools: (i) 
induction sessions, (ii) (regular) training sessions, (iii) (regular) online-tests, (iv) communication via the 
intranet and/or brochures, (v) declarations to be signed by staff on a regular basis confirming that they are 
familiar with the applicable rules and willing to comply with them and (vi) publication of general guidelines 
and the advice given in individual cases.  
 Implementation practice No 6 concerning compliance monitoring 
For the purpose of monitoring compliance with the rules on the prevention of misuse of inside information, 
the ECB and the NCAs may use different mechanisms, namely a pre-authorisation requirement and/or 
                                                      
2  http://www.bis.org/publ/bcbs113.pdf 
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Page 3 of 5 ex-ante or ex-post reporting requirements. The ECB and the NCAs, to the extent possible under national 
law, are recommended to supplement these mechanisms by compliance checks of all private financial 
transactions made by insiders. Such compliance checks should be possible even if there is no suspicion 
of non-compliance with the rules. The compliance checks may be undertaken on an ad-hoc basis and/or on a regular basis. They may focus on specific types of transactions, on a specific group of staff (having 
access to specific inside-information) or cover a certain percentage of staff determined by lot. The 
monitoring (including the compliance checks) should be done by the compliance function, possibly with the support of an external service provider.  
The compliance checks should cover all relevant accounts which members of bodies or members of staff 
own on their own behalf or together with third parties or for which they have a power of attorney. Moreover, the local rules should define precisely which documents (e.g. account statements; purchase and sale notes) the persons, who are subject to compliance checks, must keep and for which period of 
time.  
The conduct of compliance checks should be without prejudice to the possibility to carry out 
investigations/internal administrative inquiries (which include more intrusive measures) in case a person is suspect of having breached the applicable framework.  
Compliance checks and investigations are to be carried out within the limits of the applicable data 
protection law and of the applicable rules on banking and professional secrecy.  
 
Implementation practice No 7 concerning the reporting of compliance incidents  
The ECB and the NCAs are recommended to define clearly how their staff should report cases of non-
compliance within their organisation. In addition to the regular reporting channels (e.g. via the local management to the compliance function), the local rules of the ECB and the NCAs should allow for 
“whistleblowing”, i.e. the direct reporting to the co mpliance function or to a third body if the regular 
reporting channels cannot be used. Moreover, the local ru les should specify that staff shall not suffer any 
prejudicial effects on the part of their employer as a result of having reported a case of non-compliance, provided that they acted reasonably and in good faith. Moreover, the ECB and the NCAs should ensure 
that the name of the reporting member of staff is kept confidential unless it is required by law to disclose 
it. While confidentiality of the person’s identity mu st be guaranteed, anonymous reporting should not be 
encouraged. 
 
3. Rules on the prevention of misuse of inside information  
Implementation practice No 8 concerning insiders 
The ECB and the NCAs are recommended to include all persons who have access to inside information 
(as well as information about their status) in a register. The register should be maintained by an 
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Page 4 of 5 organisational function which is independent from the operational units having access to inside 
information. The register needs to be updated on an on-going basis. To identify the relevant persons, the 
ECB and the NCAs should define carefully which information needs to be classified as inside information and the related information flows. The register of insiders should be interlinked with the rights to access electronic documents and the rules on the storage and distribution of hardcopies to ensure that only 
persons with insider status get access to inside information. The rules should also specify how staff is 
notified of their status in due time.  
The ECB and the NCAs that make all their staff subject to specific restrictions do not need a separate 
register of insiders but are still required to ensure that inside information is only accessible on a “need-to-
know basis”.  
 
Implementation practice No 9 concerning restrictions of specific critical private financial transactions For the purpose of restricting critical private financial transactions, the ECB and the NCAs may choose 
one or more of the following mechanisms: Prohibitions (restricted lists), prior authorisation, ex-ante or ex-post reporting or embargo periods. The restrictions should be effective, efficient, proportionate and 
transparent. For all types of restrictions, de minimis  thresholds may be applied to ensure proportionality.  
The ECB and the NCAs are recommended to require their staff participating in Joint Supervisory Teams 
or other joint teams to refrain from trading shares and bonds issued by credit institutions subject to the supervision of the ECB and derivatives related to such shares and bonds.  
 
4. Conflicts of interest 
Implementation practice No 10 concerning the checking  of conflicts of interest at the recruitment stage 
In case the ECB and the NCAs recruit candidates with professional experience for specific positions they 
are recommended to establish procedures to examine whether candidates considered for appointment may be exposed to a conflict of interest arising from previous occupational activities or personal 
relationships. For that purpose, the ECB and the NCAs are recommended to specify in their rules (i) that 
the absence of a conflict of interest or appropriate mitigation thereof is a pre-condition for an appointment; (ii) that candidates are obliged to indicate during the application procedure any actual or potential conflict 
of interest that may arise from previous occupational activities or personal relationships and (iii) that the 
selection committee/appointing manager is obliged to a ssess potential conflicts of interest and to decide, 
possibly after consultation of the compliance function,  on appropriate measures to avoid the conflict.  
 
Implementation practice No 11 concer ning post-employment restrictions  
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Page 5 of 5 The ECB and the NCAs to the extent possible under national law, are recommended to adopt 
proportionate cooling-off periods for members of bodies as well as staff at managerial and expert level 
that intend to work for a credit institution in the supervision of which they were involved or for direct competitors of such credit institution. For members of  bodies and senior staff the cooling-off period should 
be at least six months if they intend to work for a credit institution for the supervision of which they were 
responsible.  
 
Implementation practice No 12 concerning conflicts of interest arising from occupational activities taken 
up during unpaid leave 
The ECB and the NCAs, which allow their staff to take unpaid leave to take up an occupational activity, 
are recommended to establish a procedure to check potential conflicts of interest before granting unpaid leave. The assessment of conflicts of interest shou ld be consistent with the assessment of conflicts of 
interest arising from post-employment activities. 
 
5. Rules on the acceptance of advantages  
Implementation practice No 13 concerning the reporting of advantages  
The ECB and the NCAs are recommended to adopt internal  rules requiring staff to report either to their 
line management or to the compliance function advantages which could not be rejected as well as 
attempts of third parties to offer advantages. The ECB and the NCAs may limit the reporting obligation to advantages exceeding a specific threshold or a symbolic value. The ECB and the NCAs are also recommended to specify the purpose of collecting th e data, the related access rights and the retention 
period in accordance with the applicable data protection law.