EFAMA comments on ESMA consultation on MiFID holdings

09 September 2013

EFAMA highlighted two issues with ESMA's consultation paper related to the draft RTS on information requirements for assessment of acquisitions and increases in holdings in investment firms (MiFID).

• The current 3L3 guidance on this topic recognises that proportionality should be applied to information required about the professional competence of the acquirer where a purchase is made for investment purposes, as opposed to trying to control the target as a subsidiary. This approach is not carried over to the draft RTS. While it does (at Art 5(1)(b)) require the acquirer to provide details of their ‘intentions with respect to the proposed acquisition, such as strategic investment or portfolio investment’, it does not recognise that where the intentions are purely for investment purposes that less detailed information should be required as regards professional competence, or other issues.

• The second issue would be the newly proposed reduced information requirements for EU regulated entities that acquire small non‐complex investment firms (Art.11). Some of this information would seem to be of considerable use to the NCA of the acquired firm. While much of the information would be held by the NCA of the acquirer there seems to be no requirement on them to provide the information to the acquiree’s NCA. EFAMA believes it would not be appropriate for acquirers of small asset managers being subject to lower standards of information provision.

Response

Original ESMA consultation: Draft RTS on information requirements for assessment of acquisitions and increases in holdings in investment firms (MiFID), 8.7.13

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