• Provisions Applying to French Branches of Non-EU Credit Institutions Are Revised
  • June 26, 2015
  • Law Firm: Jones Day - Cleveland Office
  • Pursuant to Article 47(1) of CRD IV, Ordinance no. 2015-558 dated May, 21, 2015 amended with immediate effect the provisions applying to French branches of non-EU credit institutions.

    The Ordinance deals with the authorization, regulatory capital requirements, and governance of branches of non-EU credit institutions. For each of these issues, the authorization or the exoneration from otherwise applicable requirements is contingent on the demonstration that the regulation or the supervision of the home country of the credit institution is deemed to be equivalent to French regulations.

    In addition, non-EU credit institutions wishing to set up a branch in France will need to demonstrate that the credit institution will carry out supervisory duties over the local branch that are equivalent to the supervisory duties that French law requires from the board of directors and the general assembly over a French credit institution. Local branches that have already been authorized under former rules have an 18-month period to certify that the credit institution carries out supervisory duties over the local branch that are equivalent to the supervisory duties that French law requires from the board of directors and the general assembly over a French credit institution.

    The Ordinance will be further discussed in a Commentary to be published shortly.