European Supervisory Authorities Finalize Guidelines for the Prudential Assessment of Acquisitions and Qualifying Holdings

The Joint Committee of the European Supervisory Authorities published a report outlining final joint Guidelines for the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector. The Joint Committee consists of the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority. The final Guidelines follow a consultation on draft guidelines published on July 3, 2015, and will replace previous guidelines published by the ESAs’ predecessors in 2008.

The purpose of the final Guidelines is to provide legal certainty and clarity on assessment processes relating to increases of control and acquisitions of banks, investment firms and insurance firms, bringing a more harmonized, clear and transparent process in prudential assessments by national regulators. In addition, the final Guidelines seek to provide clearer details on what information is required from proposed acquirers. The guidelines cover questions related to: (i) indirect acquisitions of qualifying holdings, persons acting in concert and decisions to acquire; (ii) assessment periods; and (iii) financial soundness of acquirers. The report summarizes the main points and comments that were raised in the twelve responses to its Consultation. 
Once translated into the official languages of the European Union and published on the websites of the ESAs, regulators must report within two months of publication whether they can comply with the Guidelines. The Guidelines will apply from October 1, 2017.

View the final Guidelines.