• CZC CB opened a public consultation in relation to the draft methodology for assessing qualifying holdings of certain entities which are subject to CZC CB supervision.

Purpose

• Acquisition and increase of a qualified shareholding in certain entities subject to CZC CB supervision is subject to the obligation of the acquirer to request prior approval.
• Or to notify to CZC CB this intent in advance, or make a CZC CB notification ex post.
• Draft methodology offers market participants the insights on CZC CB's standard procedure for assessing qualifying holdings, in an explanatory, non-exhaustive way.
• Draft included definitions of terms, voting rights, details on influence on management.
• Quantitative and qualitative thresholds, notifications' deadlines, acquirer's evaluation.
• Competence, credibility, suitability of the acquirer, financial health, AML compliance.
• Persons with qualified participation in the applicant for a license or an operation permit are also typically assessed, therefore the methodology's conclusions may be relevant.

Prior Approval

• Prior assessment of qualifying holdings and approval is required for specific entities.
• Including banks, savings and credit unions, securities traders, investment companies.
• Self-managed investment funds, chief administrators, central depositories of securities.
• (Re-)insurers, pension companies, regulated market organizers, central counterpaties.

Prior Notification of Intent

• Qualifying holdings assessment process in that case is different from prior approval.
• CZC CB does not have to assess all the criteria of qualifying holdings listed in the methodology, or to make an assessment under a formal administrative procedure.
• The draft methodology will therefore be relevant for those entities only to the extent that the assessment of qualifying holdings will be envisaged by legal regulations.
• This will be the case regarding payment institutions and electronic money institutions.

Notification ex Post

• For entities obliged to notify the acquisition ex post, the methodology will apply in those aspects that are relevant for other regulated persons in the lack of specific rules.
• E.g. the methodology for determining whether qualifying holdings exists will apply.
• This case concerns investment intermediaries, financial holding entities and mixed financial holding entities, settlement system operators with settlement irrevocability.
• Payment system operators with settlement irrevocability, small-scale payment service providers, small-scale e-money issuers, dynamic currency exchange service providers.

Effectiveness

• Public input on the consultation can be submitted by email until 5 June 2023.