The Joint Committee of the European Supervisory Authorities (ESAs) has published a final report containing revised joint guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector. The main objective of the guidelines is to provide the necessary clarity and predictability with regard to the assessment process contemplated in the sectoral Directives and Regulations and to:
- harmonise the conditions under which the proposed acquirer of a holding in a financial institution is required to notify its decision to the competent authority responsible for the prudential supervision of the target;
- define a clear and transparent procedure for the prudential assessment by the competent authorities of the proposed acquisition and increase of a qualifying holding, including setting the maximum period of time for competing the process;
- specify a clear criteria of a strictly prudential nature to be applied by the competent authorities in the assessment process; and
- ensure that the proposed acquirer knows what information it will be required to provide to the competent authorities in order to allow them to assess the proposed acquisition in a complete and timely manner.
The guidelines will be translated into the official languages of the European Union and published on ESAs’ websites. Competent authorities have to comply with the guidelines within 2 months after the publication of the translations. The guidelines will apply from 1 October 2017.
View ESAs’ final report and revised joint guidelines on prudential assessment of acquisitions and increases of qualifying holdings in financial services, 20 December 2016