Consultation on EU financial conglomerates directive

The Treasury and Financial Services Authority today jointly published a consultation paper on the proposed EU Financial Conglomerates Directive.

The Directive requires that prudential supervision for companies which straddle the insurance, banking and investment sectors be applied by a single supervisory co-ordinator.

Announcing the publication Financial Secretary Ruth Kelly said:

“This Directive is a key element in the Financial Service Action Plan and is necessary to ensure that the supervision of corporate groups takes full account of the group as a whole and the individual firms which comprise it. I hope all those with an interest participate in the consultation process.”

The closing date for responses to the consultation is 9th February 2004.

Notes to Editors

1. The Financial Conglomerates Directive was adopted in Council in December 2002 and is due to come into force in 2005.

2. The consultation paper can be found online on the Treasury website

3. Responses to the consultation should be sent to:

Natasha Cock
Financial Stability and Regulatory Policy Team
4/24
HM Treasury
1 Horse Guards Road
London SW1A 2HQ

Email: natasha.cock@hm-treasury.gsi.gov.uk

4. Media enquirers should call HM Treasury press office, tel. 020 7270 5238 or FSA press office 020 7066 3232.