Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

22 October 2003

FSA : Consultation on EU Financial Conglomerates Directive





The Treasury and Financial Services Authority today jointly published a consultation paper on the proposed EU Financial Conglomerates Directive.

The Directive requires that prudential supervision for companies which straddle the insurance, banking and investment sectors be applied by a single supervisory co-ordinator. Announcing the publication Financial Secretary Ruth Kelly said:

“This Directive is a key element in the Financial Service Action Plan and is necessary to ensure that the supervision of corporate groups takes full account of the group as a whole and the individual firms which comprise it. I hope all those with an interest participate in the consultation process.”

The financial services industry has continued to see the formation of financial groups with significant activities in the banking and investments sectors on the one hand, and the insurance sector on the other hand. This has prompted regulators to consider the structures necessary for containing and supervising the risks arsing in these groups known as financial conglomerates. In the European Economic Area, this has resulted in the adoption of internationally agreed Principles in the Financial Conglomerates Directive.

This Consultation Document also contains the FSA’s proposal to move to a ‘hard’ capital adequacy test at EEA parent level for UK insurance firms which was stated in the FSA’s CP50 – ‘Implementing the EC Directive on Insurance Groups’ (Chapter 4, footnote 10) – and is also noted in the ‘Interim Prudential Sourcebook for Insurers’, Guidance Note 10.1, para.22.

The closing date for responses to the consultation is 9th February 2004.

Financial Groups Part 1
Financial Groups Part 1 Annex 1, 2, 3, 4, 5, 6
Financial Groups Part 2, Annex 1


© FSA - Financial Services Authority


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment