Financial Conglomerates Directive
Description
The Financial Conglomerates Directive introduces specific legislation for the prudential supervision of financial conglomerates and financial groups involved in cross-sectoral activities to foster the stability of the financial system.
The main objectives of the Directive are (I) to ensure that financial conglomerates are adequately capitalised, preventing the same capital being counted twice over and so used simultaneously as a buffer against risk in different entities, (II) to introduce methods for calculating a conglomerate's overall solvency position, and (III) to provide for the establishment of a single lead regulator for financial conglomerates, rather than multiple lead regulators as at present, thereby reducing regulatory duplication.
The documents below are available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
Links
External Links
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FSA’s website on Financial Conglomerates (Groups) Directive: includes a workplan highlighting issues which need to be resolved domestically and at a European level