ESAs have submitted their response to the Commission’s Call for Advice on the fundamental review of the Financial Conglomerates Directive (FICOD). It includes the following recommendations:

  • the perimeter of group supervision should be extended to include insurance ancillary services undertakings and special purpose vehicles;
  • mixed financial holding companies, even if unregulated, should be made subject to supplementary supervision;
  • supervisors should be empowered to require the creation of an intermediate financial holding responsible for the financial entities in a mixed activity holding company;
  • the entity within a financial conglomerate that exercises control, that is dominant from a market’s perspective and that fulfils duties towards subsidiaries and supervisors should be designated as ultimate responsible parent entity; and
  • ESAs should develop binding technical standards for a common reporting scheme on risk concentrations and intra-group transactions.

ESAs have also published feedback to the stakeholders’ comments that informed its advice to the Commission. (Source: ESAs' Advice to Commission on FICOD Review and Feedback to Stakeholders’ Comments)