EC proposes conglomerate supervision overhaul

Posted by admin in Management & Execution on Tue, 17/08/2010 - 12:26
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The European Commission has proposed giving national supervisors greater oversight of conglomerates and holding companies. 

"The Commission proposes to equip national financial supervisors with new powers to better oversee the conglomerates' parent entities, such as holding companies," the EU executive said in a statement, saying the move was being made as a result of the financial crisis.

"This would allow supervisors to apply banking supervision, insurance supervision and supplementary supervision at the same time, thereby remedying unintended loopholes identified in the context of the financial crisis."
 
The Commission's proposal must now go to EU member states and to the European Parliament for consideration.
 

The Bottom Line:If Mr Cable has his way...

"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more

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