Requirement (MIFID)
Article 10 Shareholders and members with qualifying holdings
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. The competent authorities shall not authorise the performance of
investment services or activities by an investment firm until they have
been informed of the identities of the shareholders or members, whether
direct or indirect, natural or legal persons, that have qualifying holdings
and the amounts of those holdings.
The competent authorities shall refuse authorisation if, taking into
account the need to ensure the sound and prudent management of an
investment firm, they are not satisfied as to the suitability of the shareholders
or members that have qualifying holdings.
Where close links exist between the investment firm and other natural
or legal persons, the competent authority shall grant authorisation only
if those links do not prevent the effective exercise of the supervisory
functions of the competent authority.
2. The competent authority shall refuse authorisation if the laws,
regulations or administrative provisions of a third country governing one
or more natural or legal persons with which the undertaking has close
links, or difficulties involved in their enforcement, prevent the effective
exercise of its supervisory functions.
3. Member States shall require any natural or legal person that
proposes to acquire or sell, directly or indirectly, a qualifying holding in
an investment firm, first to notify, in accordance with the second subparagraph,
the competent authority of the size of the resulting holding.
Such persons shall likewise be required to notify the competent
authority if they propose to increase or reduce their qualifying holding,
if in consequence the proportion of the voting rights or of the capital
that they hold would reach or fall below or exceed 20%, 33% or 50% or
the investment firm would become or cease to be their subsidiary.
Without prejudice to paragraph 4, the competent authority shall have up
to three months from the date of the notification of a proposed acquisition
provided for in the first subparagraph to oppose such a plan if, in
view of the need to ensure sound and prudent management of the investment
firm, it is not satisfied as to the suitability of the persons referred
to in the first subparagraph. If the competent authority does not oppose
the plan, it may fix a deadline for its implementation.
4. If the acquirer of any holding referred to in paragraph 3 is an
investment firm, a credit institution, an insurance undertaking or a
UCITS management company authorised in another Member State, or
the parent undertaking of an investment firm, credit institution, insurance
undertaking or a UCITS management company authorised in
another Member State, or a person controlling an investment firm, credit
institution, insurance undertaking or a UCITS management company
authorised in another Member State, and if, as a result of that acquisition,
the undertaking would become the acquirer's subsidiary or come
under his control, the assessment of the acquisition shall be subject to
the prior consultation provided for in Article 60.
5. Member States shall require that, if an investment firm becomes
aware of any acquisitions or disposals of holdings in its capital that
cause holdings to exceed or fall below any of the thresholds referred to
in the first subparagraph of paragraph 3, that investment firm is to
inform the competent authority without delay.
At least once a year, investment firms shall also inform the competent
authority of the names of shareholders and members possessing qualifying
holdings and the sizes of such holdings as shown, for example, by
the information received at annu