1.▼M1 ————— ▼B — In Article 1 of Directive 92/49/EEC, a point (l) and ▼M2 ————— ▼B — in Article 1 of Directive 93/22/EEC, a point 15, shall be added containing the following definition: “‘close links” shall mean a situation in which two or more natural or legal persons are linked by: (a) “participation”, which shall mean the ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking or (b) “control”, which shall mean the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 1 (1) and (2) of Directive 83/349/EEC ( 9 ), or a similar relationship between any natural or legal person and an undertaking; any subsidiary undertaking of a subsidiary undertaking shall also be considered a subsidiary of the parent undertaking which is at the head of those undertakings. A situation in which two or more natural or legal persons are permanently linked to one and the same person by a control relationship shall also be regarded as constituting a close link between such persons.’
2.The following subparagraphs shall be added at the end of: ▼M1 ————— ▼B — Article 3 (3) of Directive 93/22/EEC, — Article 8 (1) of Directive 73/239/EEC: — Article 8 (1) of Directive 79/267/EEC: — ▼M2 ————— ▼B ‘Moreover, where close links exist between the financial undertaking and other natural or legal persons, the competent authorities shall grant authorization only if those links do not prevent the effective exercise of their supervisory functions. The competent authorities shall also refuse authorization if the laws, regulations or administrative provisions of a non-member country governing one or more natural or legal persons with which the undertaking has close links, or difficulties involved in their enforcement, prevent the effective exercise of their supervisory functions. The competent authorities shall require financial undertakings to provide them with the information they require to monitor compliance with the conditions referred to in this paragraph on a continuous basis.’