18. 7. 95 Official Journal of the European Communities No L 168/7 EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 95/26/EC of 29 June 1995 » amending Directives 77/780/EEC and 89/646/EEC in the field of credit institutions, Directives 73/239/EEC and 92/49/EEC in the field of non-life insurance, Directives 79/267/EEC and 92/96/EEC in the field of life assurance, Directive 93/22/EEC in the field of investment firms and Directive 85/611/EEC in the field of undertakings for collective investment in transferable securities (Ucits), with a view to rcinforcing prudential supervision THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular the first and third sentences of Article 57 (2) thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the Economic and Social Committee (), Acting in accordance with the procedure laid down in Article 189b of the Treaty (*) in the light of the joint text approved by the Conciliation Committee on 11 May 19935, (1) Whereas certain events have shown that it is appropriate to amend in certain respects certain Council  Directives, specifying the  general framework within  which credit institutions, insurance undertakings, investment firms and undertakings for investment in transferable securities {Ucits) may carry on their business, namely Directives 77/780/EEC () and 89/646/EEC, Directives ~ 73/239/EEC () and  92/49/EEC, Directives 79/267/EEC (*) and 92/96/EEC, Directive 93/22/EEC (7) and Directive 85/611/EEC (*), with a view to reinforcing prudential supervision; whereas it is desirable to adopt similar measures throughout the financial services sector; ) OJ No C 229, 25. 8. 1993, p. 10. (*) OJ No C 52, 14. 2. 1994, p. 15. ) Opinion of the European Parliament of 9 March 1994 (O] No C 91, 28. 3. 1994, p. 61), Council common position of 6 June 1994 (O] No C 213, 3. 8. 1994, p. 29), European Parliament Decision of 26 October 1994 (O] No C 323, 21. 11. 1994, p. 56). (") OJ No L 322, 17. 12. 1977, p. 30. Directive as last amended by Directive 89/646/EEC (O] No L 386, 30. 12. 1989, p. D). (*) OJ No L 228, 16. 8. 1973, p. 3. Directive as last amended by Directive 92/49/EEC (O] No L 228, 11. 8. 1992, p. 1). (*) O] No L 63, 13. 3. 1979, p. L. Directive as last amended by Directive 92/96/EEC {O] No L 360, 9. 12, 1992, p. 1). (") OJ No L 141, 11. 6. 1993, p. 27. (*) OJ No L 375, 31. 12. 1985, p. 3. Directive as amended by Directive 88/220/EEC (O] No L 100, 19. 4. 1988, p. 31). (2) Whereas those Directives lay down, inter alia, the conditions which must be fulfilled before the competent authorities may grant authorization for the taking-up of business; Whereas the competent authorities should not authorize or continue the authorization of a financial undertaking where they are liable to be prevented from effectively exercising  their supervisory functions by the close links between that undertaking and other natural or legal persons; whereas financial undertakings already authorized must also satisfy the competent authorities in that respect; Whereas the definition of ‘close links’ in this Directive lays down minimum criteria and that does not prevent Member States from applying it to situations other than those envisaged by the definition; Whereas the sole fact of having acquired a significant proportion of a company’s capital does not constitute participation for the purposes of this Directive if that holding has been acquired solely as a temporary investment which does not make it possible to exercise influence over the structure or financial policy of the undertaking; Whereas the reference to the supervisory authorities’ effective exercise of their supervisory functions covers supervision on a consolidated basis which  must be exercised over a financial undertaking where the provisions of Community law so provide; whereas, in such cases, the authorities applied to for authorization must be able to identify the authorities competent to exercise supervision on a consolidated basis over that financial undertaking; Whereas the principles of mutual recognition and of home Member State supervision require that Member States’ competent authorities should not grant or should withdraw authorization where factors such as the content of programmes of operations, the geographical distribution of the activities actually carried on indicate clearly that a financial undertaking has opted for the legal system of one Member State for the purpose of evading the stricter standards in force in another Member State within whose territory it carries on or intends to carry on the greater part of its activities; whereas a