EC proposes codification of the Financial Conglomerates Directive

The European Commission (EC) published a proposal for a Directive to codify and replace Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate. The proposal aims to improve legal clarity and accessibility by consolidating the existing framework governing cross‑sectoral supervision of financial conglomerates, including rules on capital adequacy, risk concentration, intra‑group transactions, governance, supervisory coordination and cooperation with third‑country authorities, into a single, clear and consolidated instrument.  It preserves the current supervisory structure, including the role of a designated coordinator, the involvement of the European Supervisory Authorities through the Joint Committee, and the use of delegated and implementing acts for technical adaptations. The codified Directive would repeal Directive 2002/87/EC upon entry into force, while maintaining member state obligations on transposition and application dates under the existing regime.

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