UK Regulators Remind Firms of New Change in Control Guidelines

The Financial Conduct Authority has published a statement reminding firms that the Guidelines of the Joint Committee of the European Supervisory Authorities on the prudential assessment of acquisitions and increases of qualifying holdings will apply with effect from October 1, 2017. The Prudential Regulation Authority has provided a similar statement by way of notification on its website.

The Joint Committee, which consists of representatives from the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupational Pensions Authority, issued the Guidelines in December 2016 to provide for a more harmonized, clear and transparent process in prudential assessments by national regulators. The Guidelines cover: (i) indirect acquisitions of qualifying holdings, persons acting in concert and decisions to acquire; (ii) assessment periods; and (iii) financial soundness of acquirers. The FCA and the PRA have confirmed to the ESAs that they will comply with the Guidelines except for provisions relating to the identification of acquirers of indirect qualifying holdings. While the Guidelines may alter the assessment approach of the FCA and/or the PRA, firms should continue to use the existing methodology for identifying proposed or existing controllers.

View FCA Statement.