Question ID: 2110
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Topic: Reporting Templates
Article: NA
Template: S.06.02
Status: Final
Date of submission: 14 Feb 2020
Question
Holdings in related undertaking's (C0310) in S.06.02.
I have got a question how to treat CIU X which has different share class A, B, C, and D in case of choosing the option 1 or 3 for the "Holdings in related undertakings, including participations".
The total number of shares for the different shares classe are :
Share class A: 1000
Share class B: 500
Share class C: 1500
Share class D: 2000
Total number of shares CIU X = 5000 (1000+500+1500+2000)
We have 300 shares in Share class B. How should we calculated the interest of share class B?
Should we calculated the interest of the CIU based on method 1 or 2:
1: the total number of Share Class B (500); 60% interest (300/500*100)
2: the total number of shares CIU X (5000); 6% (300/5000*100)
Based on method 2, we will report option 1- not a participation otherwise based on method 1 we should report option 2 - is a participation.
Which method is correct?
EIOPA answer
One of the criteria to assess whether an undertaking is a related undertaking is the existence of a participation. A participation exists when the undertaking holds at least 20% of the capital or voting rights of another undertaking. Therefore, in the case described, the assessment should be made considering the whole capital (or voting rights) of the CIU, which however may not be exactly the second approach proposed depending on the characteristics of each share class.