Regulatory Alerts2015-02-18
Joint Guidelines on the convergence of supervisory practices relating to the consistency of cooperation agreements for financial conglomerates
The European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority (ESAs) have issued joint guidelines to standardise supervisory practices regarding cooperation agreements for cross-border financial conglomerates. The document mandates competent authorities and coordinators to implement a structured allocation procedure, establish written cooperation agreements with annexes for exceptional situations, and coordinate information exchange, risk concentration assessments, capital adequacy evaluations, and intra-group transaction monitoring. It further requires supervisory planning through regular college meetings, delegated tasks, and clear decision-making procedures to ensure consistent oversight and a level playing field across the internal market.