The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) is launching today a three-month public consultation on the proposed response to the call for technical advice from the European Commission on the fundamental review of the Financial Conglomerates Directive (“the FICOD“).
This consultation covers three broad areas where advice is sought by the European Commission: the scope of application, the group wide internal governance requirements and sanctions and supervisory empowerments under the FICOD.
In its proposed response, the Joint Committee issues a series of recommendations for the review of the FICOD, including the widening of the scope of supervision, addressing requirements and responsibilities to a designated entity within the financial conglomerate and the framework of supervisory powers provided by the FICOD.
Moreover, the Joint Committee will be providing later this year, a supervisory contribution to the wider fundamental review of the FICOD, which is being carried out by the European Commission.
The consultation paper is available on the websites of the three ESAs: EBA, EIOPA and ESMA.
Please send your comments by 13 August 2012 COB to the EBA, EIOPA and ESMA, using the template provided, by e-mail to email@example.com, firstname.lastname@example.org and email@example.com by indicating the reference ‘JC/CP/2012/01’ on the subject field.
All contributions received will be published following the close of the consultation, unless otherwise requested.
Note to the Editors
(1) The Joint Committee of the European Supervisory Authorities received a Call for technical advice from the European Commission (EC) to assist the European Commission in its fundamental review of the Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate (“the FICOD”). The fundamental review follows the technical review, resulting in the Directive 2011/89/EU published in the Official Journal on 8 December 2011.
The European Commission has asked the Joint Committee to conduct ‘an assessment of supervisory practices and experiences, in the context of international developments and recently available legislation, in the areas of (A) scope of application, especially the inclusion of non-regulated entities (B) internal governance requirements and sanctions, in particular with respect to the obligations of the parent entity, and (C) supervisory empowerment, in particular the necessary legislative provisions in case the parent entity is a (non-regulated) holding company’.
(2) The Joint Committee is a forum for cooperation that was established on 1 January 2011, with the goal of strengthening cooperation between the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and European Securities and Markets Authority (ESMA), collectively known as the three European Supervisory Authorities (ESAs). Through the Joint Committee, the three ESAs cooperate regularly and closely and ensure consistency in their practices. In particular, the Joint Committee works in the areas of supervision of financial conglomerates, accounting and auditing, micro-prudential analyses of cross-sectoral developments, risks and vulnerabilities for financial stability, retail investment products and measures combating money laundering. In addition to being a forum for cooperation, the Joint Committee also plays an important role in the exchange of information with the European Systemic Risk Board (ESRB) and in developing the relationship between the ESRB and the ESAs.