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This stocktaking exercise also provides information on the implementation of the Joint Forum Principles for the Supervision of Financial Conglomerates and, in particular, Principle 6 relating to supervisory cooperation, coordination and information-sharing. The Joint Forum notes the general progress that has been made in this area since the previous study in 2011; however the present report identified several gaps and issues in relation to the implementation of Principle 6, such as:
• Not all jurisdictions have in place a specific supervision framework for financial conglomerates or coordination agreements with other supervisors of financial conglomerates on a cross-sectoral level. Gaps also exist in the coordination of on-site and off-site supervision with other domestic or international supervisors, and in arrangements or processes for taking enforcement actions with other domestic or international authorities; and
• There appear to be insufficient specific mechanisms for supervisory cooperation and coordination in periods of crisis/stress, thereby possibly hindering effective intervention in times of crisis.
Mr Thomas Schmitz-Lippert, Chairman of the Joint Forum and Executive Director, International Policy at the German Federal Financial Supervisory Authority (BaFin), said, “Supervisory colleges are key to supervisory cooperation, coordination and information-sharing on financial conglomerates. Therefore the implementation of the Joint Forum’s principles for colleges is critical and will continue to be monitored.”