On 14 September 2017, the Financial Supervisory Authority concluded that Attestor Capital LLP and its associated entities are eligible to acquire a qualifying holding in Arion banki hf. up to 20% of the banks shares and its subsidiaries Stefnir hf., Valitor hf., Vörður tryggingar hf. and Vörður líftryggingar hf., with reference to Chapter VI of the Act No. 161/2002 on Financial Undertakings and Chapter X of the Act No. 100/2016 on Insurance Activities.
The Financial Supervisory Authority shall assess whether a party intending to acquire a qualifying holding is qualified to own the holding, having regard to the sound and prudent operation of the financial undertaking. The assessment is based on the criteria set out in Paragraph 2 of Article 42 of the Act on Financial Undertakings. The European Supervisory Authorities’ Guidelines from 2008 and 2016 are also taken into consideration.[1]
The Financial Supervisory Authority assessed the eligibility of the Irish investment entity Trinity Investments DAC to acquire a direct qualifying holding in Arion banki hf. Trinity Investments DAC currently holds approximately 9.99% of the shares in Arion banki hf. and approximately 4.7% of the shares in Kaupþing ehf. resulting in an indirect stake of approximately 2.7% in the bank.[2]
The Authority also assessed the following parties’ eligibility to acquire an indirect qualifying holding in Arion banki hf.:
- Attestor Capital LLP, as the investment manager for Trinity Investments DAC and Attestor Value Master Fund LP. Attestor Capital LLP is authorised and regulated by the Financial Conduct Authority as an alternative investment fund manager in the United Kingdom.
- Attestor Services Ltd., having its registered address in the United Kingdom, which has a controlling stake in Attestor Capital LLP.
- Attestor Capital Ltd., having its registered address in the Cayman Islands, which has a controlling stake in Attestor Services Ltd.
- Jan-Christoph Peters, which has a controlling stake in Attestor Capital Ltd.
- Attestor Value Master Fund LP, having its registered address in the Cayman Islands, which funds Trinity Investments DAC. Its largest investors are United States based endowment funds and family offices.
- Wilmington Trust SP Services (Dublin) Ltd., having its registered address in Ireland, which is Trinity Investments DAC’s share trustee.
The Financial Supervisory Authority’s assessment was based on Attestor Capital LLP and its associated entities’ notification, its enclosed documents and other information the Authority obtained from the parties. The assessment was also based on information provided from relevant foreign financial supervisory authorities, including the European Central Bank which has assessed Attestor Capital LLP and its associated entities as eligible to hold a qualifying holding in an Austrian credit institution.
The Financial Supervisory Authority’s assessment emphasised that Arion banki hf. is a systemically important financial undertaking as defined by the Financial Stability Council. Therefore, it was specifically examined whether Attestor Capital LLP and its associated entities’ have the ability to provide additional capital to Arion banki hf. under special circumstances.
[1] Guidelines for the prudential assessment of acquisitions and increases in holdings in the financial sector required by Directive 2007/44/EC (CEBS/2008/214) and Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector (JC/GL/2016/01).
[2] Kaupþing ehf. holds a 57.85% share in Arion banki hf. through Kaupskil ehf. The ownership is subject to conditions set by the Financial Supervisory Authority on 8 January 2010.
