-The Council has reached a political agreements a on the proposed Directive on Financial Conglomerates, approving numerous amendments adopted by Parliament. The Directive steps up the supervision of large banking groups, financial investments and insurance.
The text will impose rules of solvency on conglomerates and ban duplication of own funds to cover risks in various entities of the same conglomerate. It will leave some margin to manoeuvre to companies to choose the method of how to eliminate duplication.
On the definition of conglomerates, one of the key concerns, the threshold of financial activity was fixed to 40 percent instead of 50 percent mentioned in the original proposal.
On the other key concern of supervision, the Council accepted mechanisms for coordinating control authorities and strengthened the obligations on information.
The political agreement is to become a Common Position.
Proposed Common Position
Commission press release
© Council of the European Union
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article