EU View Bulletin - February 2025

We are delighted to share with you the first of our new monthly Art 21C Bulletin. Here you will find information about the latest intel we have gathered across the EU27 (plus 3 EEA jurisdictions) on the implementation of Art 21C of CRD6 and how this may impact your business.

What is the latest on Art 21C right now?

As you will be aware, the provisions of Art 21C comes into force on 11 January 2027 which requires member states to transpose the requirements into national laws by 10 July 2026.

Our team is working with local counsel to gather information on how the implementation is progressing, if a draft legislation is available in their jurisdiction currently or what is the anticipated timeline, as well as updating on other news and developments such as regulator statements and public consultations. We will be providing you with as much intel as possible on how jurisdictions may implement Art 21C, such as the impact of the branch requirement on the existing licensing position and existing and new exemptions in particular reverse enquiry. As you will see from the below, we are now starting to see some member state transposition activity and in next month’s bulletin we will also include the Quick Reference Guide which will help track progress across member states.

Latest intel on EU27+3EEA developments:

Looking across the member states, this is what we are hearing:

Liechtenstein

• A new Banking Act which came into effect in Liechtenstein on 01 February 2025 expands the definition of “banking business” to encompass activities such as lending that previously did not require a licence and aligns the terminology, structure and concepts used with CRD6.

Czech Republic

• The draft legislation is already available in the Czech Republic and is currently under discussion within the relevant governmental legislative committees.

Denmark

• A draft legislation is available and was submitted for consultation on 20 December 2024, with a deadline for comments by 31 January 2025 and an activation date of 31 March 2025.

Finland

• No draft legislation is available at present, however a government proposal amending the Credit Institutions Act and the Act on the Financial Supervisory Authority to implement CRD6 ((EU) 2024/1619) is currently being prepared. The proposal is expected to be presented to Parliament in October 2025.

Ireland

• National discretions in CRR3 have been given effect through European Union (Capital Requirements) No. 2) (Amendment) Regulations 2024 [S.I. No. 682 of 2024]. With respect to CRD6, public consultation has been launched on implementation of the Capital Requirements Directive 6: https://www.gov.ie/en/consultation/d9505-public-consultation-on-the-implementation-of-the-capital-requirements-directive-vi/ Nothing yet published on Art 21C.

Netherlands

• CRR3: The EU regulations Wft Decree (Besluit EU-verordeningen Wft) is amended for proper implementation of the CRR. The new and amended articles are added to the table of enforceable articles (i.e. the Dutch Central Bank can enforce violations of those articles) and a Member State option regarding the capital floor at consolidated level was applied. The relevant amendments to the EU regulation Wft Decree entered into force on 15 January 2025. CRD6: There is no draft legislation in the Netherlands available yet with regard to implementation of Art 21C of CRD6.

Norway

• Consultation – proposal for the implementation of Directive (EU) 2024/1619 (CRD 6) in Norwegian law was issued on 10 February 2025: https://www.regjeringen.no/no/dokumenter/horing-forslag-til-gjennomforing-av-direktiv-eu-20241619-crd-6-i-norsk-rett/id3087107/?expand=horingsbrev. Consultation closes on 31 March 2025.

Portugal

• The previous CRR2 was implemented through the Portuguese regime of credit institutions and financial corporations (Regime Geral das Instituições de Crédito e Sociedades Financeiras, or RGICSF), under Decree Law No. 298/91. The main changes involved exempt organizations, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers, and capital conservation measures. This Directive's implementation significantly impacted the regime of financial companies, particularly in terms of the authorization process, criteria, and supervisory measures. Despite numerous modifications to the Portuguese regime, the implementation generally adhered to the Directive's regime. Considering the previous implementation of CRR2, counsel expect that the implementation of CRR3 will follow similar paths—through the RGICSF and generally adhering to the guidelines of CRR3 itself, aiming for the desired harmonization across all European countries.

As mentioned, we are working with local counsel to assess the impact of these measures – especially in the context of Art 21C and will update you in the next monthly Bulletin. We are also anticipating EBA guidance in a few areas including the interbank exemption and on the scope in general. We will set up a tracker for these to be included in the next Bulletin.

We will continue to keep you updated with new developments but if you have any questions in the meantime, please contact us at euview@simmons-simmons.com.