10. Qualifying holdings and members

For the purposes of Article 14(1)⁶⁴ CRD, competent authorities should examine the information relating to shareholders and members submitted by the applicant credit institution in accordance with Articles 8 and 9 of the RTS on information for authorisation .

⁶⁴ The provision reads: ‘1. The competent authorities shall refuse authorisation to commence the activity of a credit institution unless a credit institution has informed them of the identities of its shareholders or members, whether direct or indirect, natural or legal persons, that have qualifying holdings and of the amounts of those holdings or, where there are no qualifying holdings, of the 20 largest shareholders or members. […]’.

For the purposes of Article 14(2)⁶⁵ CRD, competent authorities should assess the compliance of shareholders and members with the criteria set out in Article 23(1) CRD as further specified in the ESAs’ Joint Guidelines on the prudential assessment of qualifying holdings⁶⁶ .

⁶⁵ The provision reads: ‘Competent authorities shall refuse authorisation to commence the activity of a credit institution if, taking into account the need to ensure the sound and prudent management of a credit institution, they are not satisfied as to the suitability of the shareholders or members, in accordance with the criteria set out in Article 23(1). Article 23(2) and (3) and Article 24 shall apply’.

⁶⁶ JC/GL/2016/01 of 20 December 2016, available at https://esas-joint-committee.europa.eu/Publications/Guidelines/JC_QH_GLs_EN.pdf