| |
The Financial Conglomerates
Directive
from the Basel
ii Compliance Professionals Association (BCPA)
the largest Association
of Sarbanes Oxley professionals in the
world
Article 2
Definitions
For the purposes of this
Directive:
1. ‘credit institution’ shall
mean a credit institution within the meaning of the second
subparagraph of Article 1(1) of Directive
2000/12/EC;
2. ‘insurance undertaking’
shall mean an insurance undertaking within the meaning of Article 6
of Directive 73/239/EEC, Article 6 of Directive 79/267/EEC or
Article
1(b) of Directive 98/78/EC;
3. ‘investment firm’ shall
mean an investment firm within the meaning of Article 1(2) of
Directive 93/22/EEC, including the undertakings referred to in
Article 2(4) of Directive
93/6/EEC;
4. ‘regulated entity’ shall
mean a credit institution, an insurance undertaking or an investment
firm;
5. ‘asset
management company’ shall mean a
management company within the meaning of Article 1a(2) of Council
Directive 85/611/EEC of 20 December 1985 on the coordination of laws,
regulations and administrative provisions relating to undertakings
for collective investment in transferable
securities (UCITS) (9),
as well as an undertaking the registered office of
which is outside the Community and which would require authorisation
in accordance with Article 5(1) of that Directive if it had its
registered office within the Community;
6. ‘reinsurance undertaking’
shall mean a reinsurance undertaking within the meaning of Article
1(c) of Directive 98/78/EC;
7. ‘sectoral rules’ shall mean
the Community legislation relating to the prudential supervision of
regulated entities, in particular laid down in Directives
73/239/EEC, 79/267/EEC, 98/78/EC, 93/6/EEC, 93/22/EEC and
2000/12/EC;
8. ‘financial sector’ shall
mean a sector composed of one or more of the following
entities:
(a) a credit institution, a financial institution or
an ancillary banking services undertaking within the meaning of
Article 1(5) and (23) of Directive 2000/12/EC (the banking
sector);
(b) an insurance undertaking, a reinsurance
undertaking or an insurance holding company within the meaning of
Article 1(i) of Directive 98/78/EC (the insurance
sector);
(c) an investment firm or a financial institution
within the meaning of Article 2(7) of Directive 93/6/EEC (the
investment services sector);
(d) a mixed financial holding
company;
9. ‘parent undertaking’ shall
mean a parent undertaking within the meaning of Article 1 of Seventh
Council Directive 83/349/EEC of 13 June 1983 on consolidated
accounts (1) and any undertaking which, in the opinion of the
competent authorities, effectively exercises a dominant influence
over another undertaking;
10. ‘subsidiary
undertaking’ shall mean a subsidiary
undertaking within the meaning of Article 1 of Directive 83/349/EEC
and any undertaking over which, in the opinion of the competent
authorities, a parent undertaking effectively exercises a dominant
influence;
all subsidiary undertakings of
subsidiary undertakings shall also be considered as subsidiary
undertakings of the parent undertaking;
11. ‘participation’ shall mean a participation within the meaning of the
first sentence of Article 17 of Fourth Council Directive 78/660/EEC
of 25 July 1978 on the annual accounts of certain types of companies
(2), or the direct or indirect ownership of 20 % or more of the
voting rights or capital of
an undertaking;
12. ‘group’ shall mean a group of undertakings, which consists of
a parent undertaking, its subsidiaries and the entities in which the
parent undertaking or its subsidiaries hold a
participation, as well as undertakings linked to each other by a
relationship within the meaning of Article 12(1) of Directive
83/349/EEC;
13. ‘close links’ shall mean a
situation in which two or more natural or legal persons are linked
by:(a) ‘participation’, which shall mean the ownership, direct or by
way of control, of 20 % or more of the voting rights or capital of
an undertaking; or
(b) ‘control’, which shall mean the relationship between a parent
undertaking and a subsidiary, in all the cases referred to in
Article 1(1) and (2) of Directive 83/349/EEC, or a similar
relationship between any natural or legal person and an undertaking;
any subsidiary undertaking of a subsidiary undertaking shall also be
considered a subsidiary of the parent
undertaking which is at the head of those
undertakings.
A situation in which two or more natural or legal
persons are permanently linked to one and the same person by a
control relationship shall also be regarded as constituting
a
close link between such
persons;
14. ‘financial conglomerate’ shall mean a group which meets, subject to Article 3,
the following conditions:
(a) a regulated entity within the meaning of Article 1
is at the head of the group or at least one of the subsidiaries in
the group is a regulated entity within the meaning of Article
1;
(b) where there is a regulated entity within the
meaning of Article 1 at the head of the group, it is either a parent
undertaking of an entity in the financial sector, an entity which
holds a participation in an entity in the financial sector, or an
entity linked with an entity in the financial sector by a
relationship within the meaning of Article 12(1) of Directive
83/349/EEC;
(c) where there is no regulated entity within the
meaning of Article 1 at the head of the group, the group's
activities mainly occur in the financial sector within the meaning
of Article 3(1);
(d) at least one of the entities in the group is
within the insurance sector and at least one is within the banking
or investment services sector;
(e) the consolidated and/or aggregated activities of
the entities in the group within the insurance sector and the
consolidated and/or aggregated activities of the entities within the
banking and investment services sector are both significant within
the meaning of
Article 3(2) or (3).
Any subgroup of a group within the meaning of point 12
which meets the criteria in this point shall be considered as a
financial conglomerate;
15. ‘mixed financial holding company’ shall mean a parent undertaking, other than a
regulated entity, which together with its subsidiaries, at least one
of which is a regulated entity which has its head office in the
Community, and other entities, constitutes a financial
conglomerate;
16. ‘competent authorities’
shall mean the national authorities of the Member States which are
empowered by law or regulation to supervise credit institutions,
and/or insurance undertakings and/or investment firms whether on an
individual or a group-wide basis;
17. ‘relevant competent authorities’ shall mean:
(a) Member States' competent authorities responsible
for the sectoral group-wide supervision of any of the
regulated entities in a financial
conglomerate;
(b) the coordinator appointed in accordance with
Article 10 if different from the authorities referred to in
(a);
(c) other competent authorities concerned, where
relevant, in the opinion of the authorities referred to in (a) and
(b); this opinion shall especially take into account the market
share of the regulated entities of the conglomerate in other Member
States, in particular if it exceeds 5 %, and the importance in the
conglomerate of any regulated entity established in another Member
State;
18. ‘intra-group
transactions’ shall mean all transactions
by which regulated entities within a financial conglomerate rely
either directly or indirectly upon other undertakings within the
same group or upon any natural or legal person linked to the
undertakings within that group by ‘close links’, for the fulfilment
of an obligation, whether or not contractual, and whether or not for
payment;
19. ‘risk concentration’ shall
mean all exposures with a loss potential borne by entities within a
financial conglomerate, which are large enough to threaten
thesolvency or the financial position in general of theregulated
entities in the financial conglomerate; such
exposures may be caused by counterparty risk/credit
risk, investment risk, insurance risk, market risk, other risks, or
a combination or interaction of these risks.
Certified Basel
ii Professional (CBiiPro) - Distance Learning and Online
Certification Program
The Cost: US$ 297
What is
included in this price:
A. The official presentations we use
in our instructor-led classes (1880 slides)
B. Up to 3 Online
Exams
There is only one exam you need to pass, in order to become
a Certified Basel ii Professional (CBiiPro). If you fail, you must
study again the official presentations, but you do not need to spend
money to try again. Up to 3 exams are included in the
price.
To learn more you may visit:
www.basel-ii-association.com/Questions_About_The_Certification_And_The_Exams_1.pdf
www.basel-ii-association.com/Certification_Steps_CBiiPro.pdf
C. Personalized Membership
Certificate printed in full colour.
Processing, printing,
packing and posting to your office or home
To start is easy.
We will follow the steps described at:
www.basel-ii-association.com/Distance_Learning_Online_Certification.htm
MORE
INFORMATION ABOUT THE OFFICIAL PRESENTATIONS
We will
send you 3 emails.
The first email (704 slides) covers all
the presentations that are needed for the CBiiPro Exam. All the
questions of the exam are based on these slides.
You can find
the course synopsis at:
www.basel-ii-association.com/Certified_Basel_ii_Professional.htm
We also cover the Enhancements to
the Basel II framework, July 2009, Supplemental Pillar 2
Guidance
(Supervisory Review Process) from the Bank for
International Settlements
The second and the third emails
cover the implementation of the Basel ii framework in the United
States of America and the European Economic Area. There
presentations are especially important for professionals working in
multinational or large financial organizations.
These
presentations are:
- Basel II in the United States of America
(235 slides)
- The Capital Requirements Directive of the
European Union (426 slides)
The Capital Requirements
Directive (CRD) is the common framework for the implementation of
Basel ii in European Union.
If you understand the Capital
Requirements Directive (CRD), you can work not only for the
implementation of the Basel ii framework in the 27 countries of the
European Union, but also around the world for multinational banks
and financial organizations with European operations.
The
presentations not only cover the European directives, but also
include topics like: Hedge Funds and the Capital Requirements
Directive, Securitization and the Capital Requirements
Directive.
- Regulatory Arbitrage after Basel ii (233
slides)
- The Financial Conglomerates
Directive (183 slides)
QUESTION:
Why in a Basel ii
certification program we need to understand the Financial
Conglomerates Directive?
ANSWER:
Because we have a very
different Basel ii implementation in each of the following
structures:
A. The bank is the regulated entity at the head of
the group
B. The bank is under a mixed financial holding company
(MFHC)
C. The bank is under a financial holding company
(FHC)
D. The bank is under an insurance holding company
(IHC)
Only the first 704 slides (first email), that cover the
Basel ii principles, are needed for the
exam.
To find more:
www.basel-ii-association.com/Distance_Learning_Online_Certification.htm |
| | |
