Council adopts directive to strengthen supervision of financial conglomerates
November 8, 2011
The Council of the European Union has adopted a directive amending the financial conglomerate directive ("FICOD") in order to close loopholes and ensure appropriate supplementary supervision of financial entities in a financial conglomerate. The new directive also adapts the supervision of financial conglomerates to the EU's new supervisory structure.
The revision of FICOD also amends the relevant legislation on banking and insurance supervision, namely the capital requirements directive (2006/48/EC and 2006/49/EC) and the directive on supplementary supervision of insurance undertakings in insurance groups (98/78/EC).
The FICOD, adopted at the end of 2002, gave national financial supervisors additional powers and tools to watch over conglomerates and apply supplementary supervision on them, in addition to specific banking and insurance supervision.