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Breadcrumb

  1. Home
  2. Single Rulebook Q&A
  3. 2025_7300 Definition of financial institution under Article 4(1)(26)
Question ID
2025_7300
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Other issues
Article
4
Paragraph
1
Subparagraph
26
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
N/A
Type of submitter
Competent authority
Subject matter
Definition of financial institution under Article 4(1)(26)
Question

Does the definition of financial institution under Article 4(1)(26) CRR include trust companies under Liechtenstein law?

Background on the question

As per Regulation (EU) No 575/2013 (CRR), Article 4(1)(26) financial institution means an undertaking other than an institution and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, including an investment firm, a financial holding company, a mixed financial holding company, an investment holding company, a payment institution within the meaning of Directive (EU) 2015/2366 of the European Parliament and of the Council ( 11 ), and an asset management company, but excluding insurance holding companies and mixed‐activity insurance holding companies as defined in points (f) and (g) of Article 212(1) of Directive 2009/138/EC.

In Liechtenstein, trust companies carry out the following activities (according to Art. 2 Trustee Act):

a) Establishment of legal entities, companies and trusteeships for third parties, in the licence holder’s own name and for the account of third parties and related contact and correspondence with courts and administrative authorities; 

b) Acceptance of board mandates in accordance with Art. 180a of the Liechtenstein Law on Persons and Companies and acceptance of trusteeships; 

c) Financial and business consultancy; 

d) Tax consultancy; 

e) Bookkeeping and audit review, provided this activity is not reserved for auditors and auditing companies.

There are credit institutions in Liechtenstein that hold such trust companies as subsidiaries. Do these companies fall under the definition of “financial institution” and are therefore part of the scope of prudential consolidation?

Submission date
09/01/2025
Rejected publishing date
21/01/2025
Rationale for rejection

This question has been rejected because the issue it deals with is already explained in Article 4(1)(26) of Regulation (EU) 575/2013.

The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts. The Q&A process cannot, for example, consider issues which would require changes to the regulatory framework.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status
Rejected question

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