4.5 Amendment and withdrawal of the exemption

Competent authorities should not grant an exemption to an investment firm if they consider that an investment firm does not comply with the criteria for an exemption at the time of the request or will likely not comply with the criteria subsequently.

Competent authorities should ensure that the investment firm informs the competent authority if there have been changes in the circumstances of the investment firm’s activities which relate to compliance with the exemption criteria.

Competent authorities should withdraw the exemption if they consider that the investment firm no longer complies with the criteria for the exemption set out in these guidelines or if, at any stage, the competent authority considers it necessary for the investment firm that has already obtained an exemption to comply with the liquidity requirements due to potential future liquidity needs. Competent authorities should immediately notify the investment firm about the decision to withdraw the exemption.

Competent authorities should ensure that the investment firm complies with the liquidity requirements set out in Article 43(1) at the latest 90 days after the date of the notification of the competent authority’s decision to revoke the exemption.