- Question ID
-
2013_364
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
-
411
- Paragraph
-
1
- Subparagraph
-
N/A
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
N/A
- Name of institution / submitter
-
Royal Bank of Scotland
- Country of incorporation / residence
-
United Kingdom
- Type of submitter
-
Credit institution
- Subject matter
-
Financial Customer Definition - application to captive finance companies within non-financial corporate groups
- Question
-
Article 411(1) stipulates that “'financial customer' means a customer that performs one or more of the activities listed in Annex I to Directive 2013/36/EU as its main business”. We are seeking clarity as to whether captive finance companies (“captives”) are captured by this section of the financial customer definition where they are part of a wider non-financial corporate group.
- Background on the question
-
Captives are entities set up within corporate groups to perform lending and leasing activities that facilitate the sale of goods or services of that wider group to its wholesalers and/or end customers. As such, our view is that captives are intrinsically linked to the corporate group and would not exist in isolation.
- Submission date
- Final publishing date
-
- Final answer
-
Legal entities that perform one or more of the activities or fall under the categories referred to in Article 411(1) of Regulation (EU) No 575/2013 and Article 3(9) of Commission Delegated Regulation (EU) 2015/61 shall be regarded as "financial customers" whether captive or not.
Disclaimer:
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
- Status
-
Final Q&A
- Answer prepared by
-
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
- Note to Q&A
-
Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).
Disclaimer
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.