The Commission has published an indicative roadmap for its evaluation of the Financial Conglomerates Directive (FICOD) as amended by the Directive known as FICOD 1 and the fourth Capital Requirements Directive (CRD4). It will evaluate the added value of the revisions made by FICOD 1 and whether the legislation fulfils its objectives. FICOD 1’s tools to ensure better prudential supervision of bank-insurance groups set out rules concerning:

  • identification of financial conglomerates;
  • capital adequacy;
  • risk concentration and intragroup transactions;
  • internal control mechanisms and risk management processes; and
  • coordination between supervisors.

The evaluation is expected to be completed in Q4 2016 or Q1 2017. (Source: Commission evaluates FICOD 1)