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The Commission sent a third call of advice to the Joint Committee on Financial Conglomerates (JCFC) asking for additional advice on which articles of the Financial Conglomerates Directive (FCD) need to be improved.
Four key issues remain to be resolved, the Commission states:
Ø Supervision at the level of the holding company.
Ø Identifying a financial conglomerate following the definition of ‘financial sector’ and FCD article 3.
Ø The definitions of ‘participations’, ‘close links’ and ‘group’ and their consequences for the scope of the supplementary supervision.
Ø The treatment of participants for the supervision of risk concentrations, intra group transactions, and internal control mechanisms.
The revision will now directly take the form of a legislative revision, the Commission announced, which it expects to lead to legislative simplification.
The draft advice should be available for public consultation by 30 May 2009, with the final advice to be issued in September 2009. The JCFC plans to hold a public hearing during the consultation period in late June/early July before submitting its final advice in the autumn.