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27 March 2007

Council political agreement on Prudential Assessment Directive





The draft directive modifies the current framework considerably, setting out a procedure to be applied as regards notification and decision-making. Deadlines are reduced, and any 'stopping of the clock' by the competent authorities is limited to one occasion and subject to clear conditions.

The text sets out the following prudential criteria for supervisory assessments, to be applied in all member states: the reputation of the proposed acquirer; the reputation and experience of any person that may run the resulting institution or company; the financial soundness of the proposed acquirer; on-going compliance with relevant directives; the level of risk of money laundering and terrorist financing.

It approved a global compromise as adopted by the European Parliament in first reading after negotiations under the Parliament-Council codecision procedure. The Council will adopt the directive at a forthcoming meeting (May), after finalisation of the text.

Press release on Prudential Assessment


© Council of the European Union


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