30 October 2009
The Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) - through the Joint Committee on Financial Conglomerates (JCFC) - today publish their advice to the European Commission on the review of the Financial Conglomerates Directive (FCD), together with their feedback statement following a 3 month public consultation with stakeholders. Industry's responses to this consultation were broadly supportive of the JCFC's work, and of the proposed advice.
The JCFC recommends legislative amendments to address specific areas where the FCD does not meet its objectives in the current framework. These include a change to the definition of holding companies to ensure that the application of the sectoral group directives is supplemented by the FCD irrespective of the structure of the group, and a change to enable supervisors to waive the application of the FCD for small and heterogeneous groups if their risk profile justifies exemption. The JCFC recommends the development of guidance to address the other issues identified in the advice.
The JCFC stands ready to develop the necessary guidance and further assist the European Commission.