ESAs are consulting on regulatory technical standards to apply the Financial Conglomerates Directive (FICOD) in the light of the CRD4 package. Article 6(2) of FICOD requires regulated entities in a conglomorae ensure that own funds are available at the level of the financial conglomerate, which are always at least equal to the capital adequacy requirements calculated under FICOD. ESAs put forward two calculation methods: one based on the consolidated accounting position of the group; the other on the accounts of solo entities but with aggregation of own funds and deduction of participations in other entities of the group. A combination of both methods would also be possible if more appropriate. These methods follow the principle of removing multiple gearing and the intra-group creation of own funds. The consultation is open until 5 October. (Source: ESAs Consult on Calculation Methods under Art. 6.2 FICOD)