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21 November 2006

ECON report on prudential assessment of acquisitions





Rapporteur Wolf Klinz presented his report on prudential assessment of acquisitions before the ECON Committee on Tuesday.

Mr Klinz fully supports the principle of maximum harmonisation. However, as supervisory authorities need sufficient time, he proposes to extend the assessment period.

Mr Klinz is also in favour of a closed list of criteria that will apply all over Europe and supports the view to give access to the Commission to those documents on which the negative decision of supervisor of the target is based.

A first discussion in the Committee revealed that the discussion about the relationship between home and host supervisors may become a centrepiece for discussion.

The Commission has adopted a proposal for a Directive amending the current Directives regarding procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of shareholdings in the financial sector.

The current rules allow supervisory authorities to block proposed mergers and acquisitions in the financial sector on the grounds of 'suitability of the proposed acquirer' but they are lacking definition of 'suitability' and specific criteria for its assessment. Also, they do not precise the procedure by which acquisitions are to be assessed.

Klinz report


© European Parliament


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