2021-06-16

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IFR/IFD – qualifying holdings

De Nederlandsche Bank clarifies that it does not prohibit investment firms from holding qualifying holdings outside the financial sector in excess of the limits set in Article 10(1) of the IFR. This position relies on Article 10(2) of the IFR, which requires the value of such excess holdings to be deducted from Common Equity Tier 1 capital. The regulator retains the power to prohibit these excess holdings in specific cases.

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Question:

Does DNB prohibit investment firms from holding qualifying holdings outside the financial sector in excess of the limits as referred to in Article 10(1) of the IFR?

Published: 16 June 2021

Answer:

No, we do not prohibit investment firms from holding qualifying holdings outside the financial sector in excess of the percentages of own funds as referred to in Article 10(1) of the IFR on the basis of Article 10(2) of the IFR. We considered that Article 10(1) already requires the value of qualifying holdings in excess of the limits to be deducted from the Common Equity Tier 1 capital. However, we retain the power to prohibit qualifying holdings in excess of the limits in specific cases.

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IFR/IFD (Refers to an external site)

IFD (Refers to an external site)

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