Daniel Hirschfield

The third-country branch requirement, reverse solicitation and grandfathering: unresolved questions under Art 21c

Article 21c requires non-EU lenders to establish a locally authorised branch before providing core banking services within a Member State’s territory, replacing the patchwork of national regimes with a single EU-wide framework. However, key elements of CRD VI are drafted on a minimum-harmonisation basis and Member States have transposed the Directive with markedly different speed and rigour, meaning non-EU lenders continue to face a nuanced, jurisdiction-by-jurisdiction landscape. This article examines that landscape together with some particular challenges: the reverse solicitation exemption, the scope of grandfathering protections, and the meaning of carrying out activities “in the relevant Member State”.