Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. Application of Directive 2007/44/EC amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector

According to Article 6 of Directive 2007/44/EC amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector (hereinafter: "the Qualifying Holdings Directive" or "the Directive"), the Commission has to review the application of the Directive and submit a report to the European Parliament and the Council, together with any appropriate proposals to review the directive. The time limit for this was 21 March 2011. Due to the intensive work of the Commission on a comprehensive programme of financial regulatory reform in order to build a more stable and transparent financial system following the financial crisis and due to the difficulty to assess the application of the Directive over a period of financial crisis work on the report had been postponed.

The Qualifying Holdings Directive establishes the legal framework for the prudential assessment of acquisitions by natural or legal persons of a qualifying holding in a credit institution, assurance, insurance or re-insurance undertaking or an investment firm. The Directive amended the European Directives (CRD, MiFID, Solvency II) applicable to credit institutions, investment firms, and insurance and reinsurance undertakings. It harmonizes the conditions for notifying a proposed acquisition or a disposal of a qualifying holding; defines a clear and transparent assessment procedure; and, specifies a list of strictly prudential assessment criteria. These rules are subject to maximum harmonization, without the Member States being able to lay down stricter rules. Two of those afore-mentioned Directives, CRD and MiFID, are currently under review. The proposals of the Commission as to those Directives do not amend the rules introduced in 2007.

This report describes the impact of and compliance with the Qualifying Holdings Directive; identifies the main issues emerging from the application of the Directive; and draws a number of conclusions.

EUR-Lex: COM(2013)64: Follow the progress of this proposal through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:064:FIN

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