New rules concerning financial conglomerates have been published and are expected to  take effect shortly. The new rules aim to improve cooperation between the various supervisors involved in a financial conglomerate.

This amendment implements the European Directive on financial conglomerates. The Directive contains prudential rules for banks, insurers and investment companies forming part of a financial conglomerate, and is aimed at ensuring consistency between the different forms of group supervision.

The main changes are:

  • new rules for the cooperation between the various supervisors involved in a financial conglomerate
  • European supervisors may adopt common guidelines
  • member states may require the coordinating supervisor to carry out stress tests at financial conglomerates
  • financial conglomerates have to give more insight into the legal structure, management and organisational structure of the group, and must publish annual information on this
  • managers of alternative investment funds receive the same treatment as managers of UCITs
  • one of the four calculation methods for adequacy at the group level is abolished

The deadline for implementation by member states was 10 June 2013.

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