Financial Conglomerates

European Union legislation in this area is an important step in the ongoing modernisation of European Union financial legis­lation and addresses an important loop­hole in current EU fi­nan­cial leg­is­la­tion. It is the first com­pre­hen­sive im­ple­men­ta­tion in the world of in­ter­nation­ally-agreed re­com­mend­ations on super­vision of financial conglomerates.

Appropriate supervision of financial conglomerates – large financial groups active in different financial sectors, often across borders – is important because these firms are often systemically important, either in one Member State of the European Union or for the European Union as a whole. The Financial Conglomerates Directive will enhance the prudential soundness and effective supervision of financial conglomerates; will promote convergence in national supervisory approaches, and between sectors; will enhance financial stability and is a significant improvement in the protection of depositors, insurance policy holders and investors.