Financing companies (sociétés de financement) are regulated entities licensed to grant credit transactions but not to receive funds from the public. As such, they do not qualify as credit institutions (which implies, by way of example, that they are not eligible for ECB refinancing) but as financial institutions for the purposes of the Capital Requirements Regulation (no. 575/2013). Secondary legislation setting out the capital requirements regime applicable to financing companies was released on December 23, 2013. Broadly, the secondary legislation extends the application of the capital requirements regime set out for credit institutions to financing companies except where they are expressly disapplied, i.e., liquidity and coverage requirements for the most part.
Further, secondary legislation was taken on December 12, 2013 to the effect of limiting the circumstances in which financing companies may refinance themselves through the issue of debt securities without being deemed to be collecting funds from the public (which latter activity is barred to financing companies). This mostly covers issue of debt securities issued by way of private placement to qualified investors or with a denomination per security in excess of EUR 100,000.