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European Parliament and Council Directive 95/26/EC of 29 June 1995 amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, Directives 73/239/EEC and 92/49/EEC in the field of non- life insurance, Directives 79/267/EEC and 92/96/EEC in the field of life assurance, Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (Ucits), with a view to reinforcing prudential supervision
Article 2

Article 2

  1. ▼M1 —————

    ▼B

    In Article 1 of Directive 92/49/EEC, a point (l) and

    ▼M2 —————

    ▼B

    in Article 1 of Directive 93/22/EEC, a point 15,

    shall be added containing the following definition:

    ‘close links shall mean a situation in which two or more natural or legal persons are linked by:

    (a) participation, which shall mean the ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking or

    A situation in which two or more natural or legal persons are permanently linked to one and the same person by a control relationship shall also be regarded as constituting a close link between such persons.’

  2. The following subparagraphs shall be added at the end of:

    ▼M1 —————

    ▼B

    Article 3 (3) of Directive 93/22/EEC,

    Article 8 (1) of Directive 73/239/EEC:

    Article 8 (1) of Directive 79/267/EEC:

    ▼M2 —————

    ▼B

    ‘Moreover, where close links exist between the financial undertaking and other natural or legal persons, the competent authorities shall grant authorization only if those links do not prevent the effective exercise of their supervisory functions.

    The competent authorities shall also refuse authorization if the laws, regulations or administrative provisions of a non-member country governing one or more natural or legal persons with which the undertaking has close links, or difficulties involved in their enforcement, prevent the effective exercise of their supervisory functions.

    The competent authorities shall require financial undertakings to provide them with the information they require to monitor compliance with the conditions referred to in this paragraph on a continuous basis.’