Consultation on Financial Conglomerates
The European Commission reflects on a possible revision of the Financial Conglomerates Directive (FICOD). To this end, the Commission launched a consultation as part of the re-evaluation of its legislation exercise (REFIT). Lieve Lowet and Linda van Goor replied together to the recent consultation on financial conglomerates (20160919 Reply Lowet Vangoor). They call for the abolition of unnecessarily complicating thresholds and for a better alignment of the sector directives either via changes to the sectoral directives or through a modified version of FICOD. The FICOD 2002 directive, revised in 2011, foresees supplementary supervision for group risks on top of the sector supervision. The rules on sector supervision are essentially to be found in Solvency II for insurance, and in CRR / CRD for banking. There are 82 financial conglomerates in the EEA with four headquartered outside Europe. Examples include bancassurance groups such as Achmea Rabobank, Crédit Agricole, KBC, Banco Santander, but also Generali, APG and many others. The Commission is now looking at all the entries and if further legislative initiatives may prove necessary, there will be a separate impact assessment.