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)