The European Commission has published a brief consultation on the Financial Conglomerates Directive, and the Delegated Regulation made under it.

The Commission is using the consultation to gather the evidence it needs to decide whether the Directive and Regulation are proportionate, fit for purpose, and delivering on their policy objectives*.

As the Commission seems to acknowledge, it’s already clear, from the Commission’s 2011 Call for Advice and its 2012 Report, that the Directive and Regulation are not meeting these objectives, so change is almost inevitable.

The Commission’s consultation includes a brief narrative and a handful of questions about:

  • Scope – are all of the entities and activities that ought to be covered, actually covered (but no more)?
  • Risk and group-risk management – especially as regards capital adequacy; corporate governance; risk management processes; risk concentrations, and intra-group transactions; and
  • Supervisory powers, supervisory coordination, and enforcement.

The consultation period runs until 20 September 2016. The Commission is especially keen to hear from the 78 European financial conglomerates that exist today, but other stakeholders are also invited to contribute.