ESAs publish financial conglomerate supervisory practice Guidelines: The Joint Committee of ESAs has published the final draft of the Joint Guidelines on the convergence of practices aimed at ensuring consistency of supervisory coordination arrangements for financial conglomerates. They focus on how financial authorities should cooperate to achieve a supplementary oversight of financial conglomerates. The Joint Guidelines cover:

  • mapping of the financial conglomerate structure and written agreements;
  • coordination of information exchange, supervisory planning and coordination of supervisory activities in going concern and emergency situations;
  • the supervisory assessment of financial conglomerates; and
  • other decision-making processes among the competent authorities.

The Joint Guidelines will apply from 23 February 2015. (Source: ESAs Publish Guidelines on Conglomerate Supervision)

ESAs publish risk concentration and intra-group RTS: The Joint Committee of the  ESAs has published RTS to clarify which risk concentrations and intra-group transactions within a financial conglomerate should be considered as significant. (Source: ESAs Publish Risk Concentration and Intra-Group Guidelines)

ESAs consult on cross-selling practices: The Joint Committee of ESAs has published a consultation paper on draft Guidelines for regulating cross-selling practices in the EU financial sector to ensure firms comply with the general conduct of business standards expected. In particular, the Guidelines provide an approach for supervising firms valid across the EU. The ESAs say this will give more scope for EU customers to take better informed purchasing decisions, and propose greater disclosure of costs and risks to minimise the risk that consumers may buy unsuitable products. The consultation will run until 22 March 2015. (Source: ESAs Consult on Cross-Selling Practices)

ESAs publish credit ratings discussion paper: The Joint Committee of ESAs has published a discussion paper on the use of credit ratings by financial intermediaries in the EU. This follows the removal of all references to credit ratings in any regulatory standards where there was a  potential to trigger sole or mechanistic reliance on credit ratings. The ESAs will use the responses to compose a first draft of proposed alternatives to credit ratings, which the Joint Committee hopes to issue in the second quarter of 2015. Consultation closes on 27 February 2015. (Source: ESAs Seek Views on Credit Rating Alternatives)