On 24 July 2014, the European Supervisory Authorities (ESMA, the European Banking Authority and the European Insurance and Occupational Pensions Authority, together, the "ESAs") published proposed draft regulatory technical standards ("RTS") under the Financial Conglomerates Directive. Pursuant to the Directive, financial conglomerates are subject to supplementary prudential supervision of any banking and insurance entities in the group. The draft RTS include proposals on (i) the reporting of information to national regulators and coordinators; (ii) the risk concentration and intra-group transactions at the level of the financial conglomerate that should be considered "significant" for the purpose of reporting obligations; (iii) the factors that national regulators and coordinators should consider when identifying types of significant risk concentration and setting thresholds for reporting requirements; and (iv) supervisory measures to assist in developing a harmonized approach to supervision of financial conglomerates. The consultation is open until 24 October 2014.
The proposed draft RTS are available at: http://www.eba.europa.eu/documents/10180/764919/JC-CP-2014-04+Joint+Consultation+Paper+draft+RTS+art+21a+1a+FICOD.pdf
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