The Joint Forum of Basel Committee on Banking Supervision, International Organisation of Securities Commissions and International Association of Insurance Supervisors has issued its final report entitled “Principles for Supervision of Financial Conglomerates”. This updated report supersedes the Compendium of documents produced by the Joint Forum in 2001 (which included capital adequacy principles, fit and proper principles, and framework for supervisory information sharing).

In revising its principles, the aim of the Joint Forum was to focus on closing regulatory gaps, eliminating supervisory “blind spots” and ensuring effective supervision of risks arising from unregulated financial activities and entities. The principles are divided into five sections as follows (i) supervisory powers and authority, (ii) supervisory responsibility, (iii) corporate governance, (iv) capital adequacy and liquidity and (v) risk management