Regulatory Alerts2017-05-04
Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector
The European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority have issued Joint Guidelines establishing uniform procedural rules and assessment criteria for the prudential evaluation of acquisitions and increases of qualifying holdings in the financial sector. The Guidelines require competent authorities to consistently apply a case-by-case analysis when determining joint action, significant influence, and indirect acquisitions across credit institutions, investment firms, insurers, reinsurers, and central counterparties. They mandate that target supervisors aggregate holdings of persons acting jointly, evaluate specific corporate governance and funding indicators, and ensure prior notification triggers a full prudential assessment regardless of whether the 10 % capital or voting rights threshold is met.