EUROPE: ESMA Consultation on RTS on acquisitions of EU qualifying holdings in investment firms

Wednesday July 10 2013

The European Securities and Markets Authority has published a draft Regulatory Technical Standard for consultation on the information requirements when applying for approval of acquisition of EU qualifying holdings in investment firms.

Article 10b(4) of the Markets in Financial Instruments Directive (MiFID) requires Member States to make publicly available the information necessary to carry out the assessment of a proposed acquirer of an investment firm. This information must be provided at the time of the initial notification. Article 10a of MiFID requires ESMA to draft regulatory technical standards (RTS) to establish an exhaustive list of information referred to in Article 10b(4) of MiFID.

The proposed RTS set out in the Consultation Paper are based on the CEBS, CESR and CEIOPS ‘Guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC’ (3L3 Guidelines), as well as the report issued by the Commission (in February 2013) to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of Regions on the application of Directive on acquisitions and increase of holdings in the financial sector.

The consultation on the draft RTS covers the following:

• Proportionality
• Documentation
• Close links
• Consolidated supervision
• Third country acquirers
• Legal structures of acquirers
• Shareholding structure of proposed acquirers

ESMA will consider the responses it receives to the consultation in Q4, and will finalise the draft RTS for submission to the Commission by 1 January 2014 for endorsement.

Click on the above link for more details.