The joint working group of CEBS and CEIOPS has issued a consultation paper on the Financial Conglomerates Directive. The Commission has asked the group to consider specific aspects of national implementation of the Directive in the context of the Commission’s review of it. The group has found four areas in which it thinks the Directive may not achieve its objectives:  

  • confusion caused by interaction of definitions covering different types of holding company;  
  • definition of the “financial sector” in respect of asset management companies and the workings of the threshold conditions for identifying conglomerates;  
  • interpretation of the terms “participation” and “durable link” which leads to some Member States including participations that others exclude; and  
  • how groups treat participations in terms of risk control where they do not control the participations.  

The paper recommends how the Commission could address these issues and asks for comment by 28 August.