Regulatory Alerts2022-07-07
Added · Updated
Assessment of the leverage used in funding the acquisition or expansion of a qualifying holding
De Nederlandsche Bank (DNB) assesses the leverage used to fund the acquisition or expansion of a qualifying holding in an insurance firm and may include specific requirements in the declaration of no-objection. Acquiring entities must keep leverage below a reasonable limit, simulate its impact on the target, provide sufficient financing information, and ensure the acquisition is not reimbursed through target capital outflows without consent. DNB may impose leverage thresholds based on the financing structure and cross-sectoral benchmarking.