UK: The Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019

The Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019 were made yesterday (February 14): see here or here (pdf). The Regulations come into force on exit day (see reg. 1). They are accompanied by an explanatory memorandum and an impact assessment: see, respectively, here (pdf) and here (pdf). To quote directly from the explanatory memorandum:

2.2 The EU Financial Conglomerates Directive (FICOD – No. 2002/87/EC) was originally adopted in 2002 and subsequently amended in 2011. It was developed to address the lack of specific prudential treatment for financial conglomerates – groups with activities in more than one of the insurance, banking, or investment services sectors. The directive therefore contributes to greater financial stability and consumer protection.

2.3 FICOD applies specifically to a group with at least one entity in the insurance sector, and at least one entity in the banking or investment services sector. One of these entities, according to the EU definition, must be located in the European Economic Area (EEA), while the other(s) may be located anywhere in the world (including the EEA). 

2.4 FICOD sets out specific requirements on solvency to prevent the same capital being used more than once as a buffer against risk in different entities in the same conglomerate. It also sets out requirements related to conglomerates’ management, risk management, and requirements for information sharing with relevant regulators. 

2.5 The UK subsequently implemented FICOD through the Financial Conglomerates and Other Financial Groups Regulations 2004 (FICOR - 2004 No. 1862). This instrument therefore identifies and amends deficiencies in the EU text to ensure that FICOR will remain operative in a UK-only context post-exit".

Europe: Commission consultation on the Financial Conglomerates Directive

The European Commission began a consultation today as part of its evaluation of the EU Financial Conglomerates Directive (2002/87/EC). A copy of the consultation paper is available here (pdf) and further background information is available here. The Commission is considering whether the framework set out in the Directive is proportionate and fit for purpose. More specifically, the Commission wants to know whether the framework has: (a) contributed to enhanced financial stability; (b) safeguarded creditors' and policyholders' interests; and (c) promoted the competitiveness of financial conglomerates within the EU and at international level.

UK: The Financial Conglomerates and Other Financial Groups (Amendment) Regulations 2013

The Financial Conglomerates and Other Financial Groups (Amendment) Regulations 2013 were made and laid before Parliament yesterday and come into force on 10 June: see here (pdf). An explanatory memorandum is available here (pdf). The Regulations implement, in part, Directive 2011/89/EU and make various amendments to the Financial Conglomerates and Other Financial Groups Regulations 2004, the Capital Requirements Regulations 2006, the Financial Services and Markets Act 2000, the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001.

Europe: amending the Financial Conglomerates Directive - amending Directive adopted by Council of the EU

The Council of the European Union yesterday adopted a Directive making changes to the Financial Conglomerates Directive: see here (pdf).

Europe: Commission proposes amendments to the Financial Conglomerates Directive

The European Commission has published proposals to amend the Financial Conglomerates Directive (2002/87/EC), the purpose of which is to provide Member States' regulators with greater powers in respect of so-called supplementary supervision. For further information see: FAQs | Proposal text (pdf) | Impact Assessment - full text (pdf) : executive summary (pdf) |