Amended rules for the authorisation of qualifying holdings

The Law of 1 June 2021, which entered into force on the same date, introduced a new subparagraph to Article 57 of the Law of 5 April 1993 on the financial sector.

Article 57 provides for an obligation for credit institutions and professionals of the financial sector to obtain the authorisation from the Commission de Surveillance du Secteur Financier (CSSF) before acquiring a qualifying holding in another company (i.e. holding of more than 10% of the capital/voting rights).

The new subparagraph introduces an exemption to such authorisation requirement if the qualifying holding does not exceed EUR 40 million and 5 per cent of a CRR institution’s own funds. These conditions are cumulative.

With a view to stimulating the stabilisation and recovery of the economy, the amendment thus facilitates capital injections in companies by credit institutions and CRR investment firms.