Definition of small and non-complex institutions and its applicability to SSM significant institutions

Does an institution that has been determined by the ECB as being significant within the meaning of Art. 6 (4) SSM Regulation* due to its membership to a group of significant institutions according to Art. 40 (2) of SSM Framework Regulation** qualify as small and non-complex institution as provided by Art. 4 no. 1 (145) of Regulation 575/2013? *Council Regulation (EU) No. 1024/2013 conferring specific tasks on the ECB concerning policies related to the prudential supervision of credit institutions ** Regulation (EU) No. 468/2014 of the ECB establishing the framework for cooperation within the Single Supervisory Mechanism between the ECB and national competent authorities and with national designated authorities (ECB/2014/17)

The banking package on revised rules on capital requirements (CRR II/CRD V) introduced the concept of small and non-complex institution, allowing institutions that fit into pre-determined criteria of size and complexity, for example, to be subject to simpler and conservative alternatives of new prudential standards, notably for market risk, the net stable funding ratio, counterparty credit risk and interest rate risk in the banking book. There are nine criteria that need to be met for an institution to be classified as a small and non-complex institution in accordance with Art. 4 no. 1 (145) of Regulation 575/2013. Furthermore, pursuant to Art. 428ai of Regulation 575/2013 small and non-complex institutions my choose, with the prior permission of their competent authority, to apply the simplified calculation of the NSFR, as referred to in Art. 428aj to Art. 428az of Regulation 575/2013. In the same time, in accordance with Art. 40 (2) of the SSM Framework Regulation if one or more supervised institutions are part of a supervised group, the criteria for determining significance shall be determined at the highest level of consolidation within the SSM participating Member States and each of the supervised entities forming part of a supervised group shall be deemed to be a significant institution within the meaning of Art. 6 (4) SSM Regulation. The question arises whether member institutions of a SSM significant group can be qualified as small and non-complex institutions as provided by Art. 4 no. 1 (145) of Regulation 575/2013 and are thus, entitled to apply for the prior permission of the competent authority foreseen by Art. Art. 428ai  of Regulation 575/2013, in order to calculate the simplified NSFR.