On 18 June 2025, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying the minimum list of information to be provided to the competent authorities at the time of the notification under Article 23(6) of the Capital Requirements Directive IV (CRD IV).

Background

The CRD IV, as amended, provides that proposed acquirers of qualifying holdings have to notify in writing in advance of the acquisition the competent authority of the credit institution in which they are seeking to acquire or to increase a qualifying holding. The area of notification and assessment of proposed acquisitions of qualifying holdings are governed by Articles 22-27 of that Directive. The EBA has been entrusted by Article 23(6) to develop RTS specifying the minimum list of information to be provided to the competent authorities at the time of the notification.

Purpose

The purpose of the draft RTS is to set out a minimum list of information to be submitted by the proposed acquirer to the competent authority and aims to set a uniform standard of the content of the notification, which is indispensable to support a harmonized assessment of the proposed acquisition against the five assessment criteria laid down in Article 23 CRD IV:

  • The reputation of the proposed acquirer.
  • Suitability of any member of the management body who will direct the business of the target entity, to the extent the proposed acquirer intends to appoint any.
  • The financial soundness of the proposed acquirer.
  • The target institution’s ability to comply and continue to comply with prudential requirements.
  • Any reasonable ground to suspect an attempt or increase in the money laundering or terrorist financing risk by the proposed acquisition.

The information request set out in the draft RTS includes information on:

  • The identity, past convictions, financial soundness and financial and non-financial interests in the target institution of the natural or legal persons intending to acquire the holding.
  • The good repute, knowledge skills and experience of the members of the management body where the proposed acquirer intends to appoint/replace members of the management body of the target institution.
  • The sound and prudent management of the target institution following the proposed acquisition, including the proposed acquirer’s strategy in respect of the acquisition, the estimates of the applicable prudential ratios, and the information on the new group structure after the acquisition of the qualifying holding.
  • The legitimate origin of the sources of funding for the acquisition, including when they are borrowed, as well as information about the assets that have to be sold by the acquirer, and on the channels used to transfer such funds.

Next steps

The deadline for comments on the consultation paper is 18 September 2025.

A public hearing will take place via conference call on 15 July from 14:00-16:00 CET. The deadline for registration is 11 July at 16:00 CET.

Following the review after the public consultation, the draft RTS will be submitted to the European Commission for endorsement following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the EU.