| |
The Financial Conglomerates
Directive
from the
Basel
ii Compliance Professionals Association (BCPA)
the largest Association
of Sarbanes Oxley professionals in the
world
CHAPTER IV: AMENDMENTS TO EXISTING
DIRECTIVES
Article 22
Amendments to Directive 73/239/EEC
Directive 73/239/EEC is amended as
follows:
1. the following Article shall be inserted: ‘Article
12a
1. The competent authorities of the other Member State
involved shall be consulted prior to the granting of an
authorisation to an insurance undertaking, which
is:
(a) a subsidiary of an insurance undertaking
authorised in another Member State;
or
(b) a subsidiary of the parent undertaking of an
insurance undertaking authorised in another Member State;
or
(c) controlled by the same person, whether natural or
legal, who controls an insurance undertaking authorised in another
Member State.
2. The competent authority of a Member State involved
responsible for the supervision of credit institutions or investment
firms shall be consulted prior to the granting of
an
authorisation to an insurance undertaking which
is:
(a) a subsidiary of a credit institution or investment
firm authorised in the Community; or
(b) a subsidiary of the parent undertaking of a credit
institution or investment firm authorised in the Community;
or
(c) controlled by the same person, whether natural or
legal, who controls a credit institution or investment firm
authorised in the Community.
3. The relevant competent authorities referred to in
paragraphs 1 and 2 shall in particular consult each other when
assessing the suitability of the shareholders and the reputation and
experience of directors involved in the management of another entity
of the same group.
They shall inform each other of any information
regarding the suitability of shareholders and the reputation and
experience of directors which is of relevance to the other competent
authorities involved for the granting of an authorisation as well as
for the ongoing assessment of compliance with operating
conditions.’
2. the following subparagraphs shall be added to
Article 16(2):
‘The available solvency margin shall also be reduced
by the following items:
(a) participations which the insurance undertaking
holds in
— insurance undertakings within the meaning of Article
6 of this Directive, Article 6 of FirstDirective 79/267/EEC of 5
March 1979 on the coordination of laws, regulations
and
administrative provisions relating to the taking up and pursuit of
the business of direct life assurance (*), or Article 1(b) of
Directive 98/78/EC of the European Parliament and of the Council
(**),
— reinsurance undertakings within the meaning of
Article 1(c) of Directive 98/78/EC,
— insurance holding companies within the meaning of
Article 1(i) of Directive 98/78/EC,
— credit institutions and financial institutions
within the meaning of Article 1(1) and (5) of Directive 2000/12/EC
of the European Parliament and of the Council
(***),
— investment firms and financial institutions within
the meaning of Article 1(2) of Directive 93/22/EEC (****) and of
Article 2(4) and (7) of Directive 93/6/EEC
(*****);
(b) each of the following items which the insurance
undertaking holds in respect of the entities defined
in
(a) in which it holds a
participation:
— instruments referred to in paragraph
3,
— instruments referred to in Article 18(3) of
Directive 79/267/EEC,
— subordinated claims and instruments referred to in
Article 35 and Article 36(3) of Directive
2000/12/EC.
Where shares in another credit institution, investment
firm, financial institution, insurance or reinsurance undertaking or
insurance holding company are held temporarily for the purposes of a
financial assistance operation designed to reorganise and save that
entity, the competent authority may waive the provisions on
deduction referred to under (a) and (b) of the fourth subparagraph.
As an alternative to the deduction of the items
referred to in (a) and (b) of the fourth subparagraph which the
insurance undertaking holds in credit institutions, investment firms
and financial institutions, Member States may allow their insurance
undertakings to apply mutatis mutandis methods 1, 2, or 3 of Annex I
to Directive 2002/87/EC of the European Parliament and of the
Council of 16 December 2002 on the
supplementary
supervision of credit institutions, insurance
undertakings and investment firms in a financial conglomerate
(******).
Method 1 (Accounting consolidation) shall only be
applied if the competent authority is confident about the level
ofintegrated management and internal control regarding the entities
which would be included in the scope of consolidation. The method
chosen shall be applied in a consistent manner
overtime.
Member States may provide that, for the calculation of
the solvency margin as provided for by this Directive, insurance
undertakings subject to supplementary supervision in accordance with
Directive 98/78/EC or to supplementary supervision in accordance
with Directive 2002/87/EC, need not deduct the items referred to in
(a) and (b) of the fourth subparagraph which are held in credit
institutions, investment firms, financial institutions, insurance or
reinsurance undertakings or insurance holding companies which are
included in the supplementary supervision.
For the purposes of the deduction of participations
referred to in this paragraph, participation shall mean a
participation within the meaning of Article 1(f) of Directive
98/78/EC.
(*) OJ L 63, 13.3.1979, p. 1. Directive as last
amended by Directive 2002/12/EC of the
European Parliament and of the Council (OJ L 77,
20.3.2002, p. 11).
(**) OJ L 330, 5.12.1998, p.
1.
(***) OJ L 126, 26.5.2000, p. 1. Directive as amended
by Directive 2000/28/EEC (OJ L 275, 27.10.2000, p.
37).
(****) OJ L 141, 11.6.1993, p. 27. Directive as last
amended by Directive 2000/64/EC of the European Parliament and of
the Council (OJ L 290, 17.11.2000, p. 27).
(*****) OJ L 141, 11.6.1993, p. 1. Directive as last
amended by Directive 98/33/EC of the European Parliament and of the
Council (OJ L 204, 21.7.1998, p. 29).
(******) OJ L 35, 11.2.2003.’
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
|
| | |
