On 12 January 2023, FR ACPR clarified position on holding company oversight.
- FR ACPR issued position 2022-P-02 re financial holding companies, mixed financial holding companies, parent companies and investment holding companies' obligations.
- Specifications re approval obligations, exemption from approval, as well as prudential obligations according to the place of the holding in the chain of shareholder ownership.
- Clarification of holding companies' prudential obligations under CRD V, IFR regulation.
- Abbreviations in the position for financial holding company (CFH), mixed CFH (CFHM).
- For, finance company's parent (EMSFs), EU parent investment holding company (CHI).
- Approval, prudential monitoring of CFH, CFHM, EMSFs/entities subject to supervision on a (sub)-consolidated basis under art L517-12 of the monetary and financial code.
- Regarding CFHs and CFHMs, their approval depends on the ECB if the CFH or CFHM belongs to a group supervised directly by ECB, requests are submitted via its portal.
- Once approved, CFHs, CFHMs, EMSFs must comply with the prudential requirements under art L517-5, L517-9, L517-13 of the CMF, including the fit & proper obligations.
- CFHs, CFHMs may be exempted under art L517-14 CMF from approval requirements.
- A CFH or a CFHM is viewed as a cross-border one if the supervisory authority on a consolidated basis of the entity held is different from the authority of the head office.
- In that case both authorities must reach a joint decision of approval or exemption from approval, according to the procedure provided for in article L. 613-20-6-1 of the CMF.
- Parent EU CHIs are not subject to an approval procedure by the competent authority in the Member State where they are established, but they are listed on FR ACPR's site.
- They are subject to prudential obligations on a consolidated basis under art 7 of IFR.
- Also, subject to the obligations of competence and good repute of their effective managers and members of their supervisory body, under article L. 517-11-1 of CMF.
- Intermediate CFHs, CFHMs and EMSFs do not have to be subject to the approval set out in article L. 517-12 of the CMF but they are listed by ECB under EC reg 468/2014.
- They are however assessed by AFR ACPR if they are involved in a shareholding threshold crossing in the capital / voting rights of an entity subject to FR ACPR's oversight or during approval.
- Position included a table that is summarizing the prudential treatment the FR ACPR intends to apply to CFHs, CFHMs, EMSFs and CHIs, and the resulting requirements.