The European Commission wants to revise the supervision of financial conglomerates and has published a proposal to amend the relevant directives. One of the proposed amendments is to enable sectoral and supplementary supervision of a conglomerate’s parent company. In addition, financial regulators should have greater flexibility in choosing supplementary supervision or waiving it if they consider the risks of a certain conglomerate negligible. The proposed amendments relate to the Financial Conglomerates Directive, the Capital Adequacy Directive, and the Directive on supplementary supervision of insurance undertakings in an insurance group. The Commission aims for the new rules to take effect in 2011.