08 July 2013

ESMA consults on information regarding acquisitions and increases in holdings under MiFID

ESMA is required to submit the draft RTS to the European Commission by 1 January, 2014.

The proposed RTS set out in this Consultation Paper (CP) 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’4 (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 main objectives of Directive 2007/44/EC are to provide the necessary legal certainty, clarity and predictability regarding the assessment process and the role of competent authorities by:

i. harmonising the information which the proposed acquirer of a holding in a credit institution, assurance, insurance or re-insurance undertaking or an investment firm is required to provide in the notification of its proposed acquisition to the competent authority responsible for the prudential supervision of the target entity (this information is required to allow competent authorities to assess the proposed acquisition in a complete and timely manner);

ii. defining a clear and transparent procedure for the prudential assessment of the proposed acquisition by the competent authorities, including setting a maximum period of time for the assessment; and

iii. specifying clear and consistent criteria of a prudential nature to be applied by the competent authorities in the assessment process.

In relation to the information to be provided to the competent authorities, the amended Article 10b(4) of MiFID requires Member States to make publicly available the information necessary to carry out the  assessment of the proposed acquirer which must be provided at the time of the initial notification.

Article 10a of MiFID, as amended by Article 6(4) of the Omnibus Directive, also requires ESMA to  draft implementing technical standards (ITS) to determine standard forms, templates and procedures  to be used in the consultation process between competent authorities referred to in Article 10(4) of  MiFID. These ITS must also be submitted to the Commission by 1 January 2014. ESMA does not intend on consulting on proposals for these draft ITS, as cooperation between competent authorities is  not a topic that requires input from the public.

Comments should reach EMSA by 9 September, 2013.

Full Consultation paper

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