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The Financial Conglomerates
Directive
from the Basel
ii Compliance Professionals Association (BCPA)
the largest Association
of Sarbanes Oxley professionals in the
world
CHAPTER III: POWERS CONFERRED ON THE COMMISSION AND
COMMITTEE PROCEDURE
Article 28
Amendments to Directive
98/78/EC
Directive 98/78/EC
is amended as follows:
1. in Article 1 points (g), (h),
(i) and (j) shall be replaced by the following:
"(g)
'participating undertaking' shall mean an undertaking which is
either a parent undertaking or other undertaking which holds a
participation, or an undertaking linked with another undertaking
by a relationship within the meaning of Article 12(1) of
Directive 83/349/EEC;
(h) 'related undertaking' shall
mean either a subsidiary or other undertaking in which a
participation is held, or an undertaking linked with another
undertaking by a relationship within the meaning of Article
12(1) of Directive 83/349/EEC;
(i) 'insurance holding
company' shall mean a parent undertaking, the main business of
which is to acquire and hold participations in subsidiary
undertakings, where those subsidiary undertakings are
exclusively or mainly insurance undertakings, reinsurance
undertakings, or non-member-country insurance undertakings, at
least one of such subsidiary undertakings being an insurance
undertaking, and which is not a mixed financial holding company
within the meaning of 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(30);
(j) 'mixed-activity insurance holding
company' shall mean a parent undertaking, other than an
insurance undertaking, a non-member country insurance
undertaking, a reinsurance undertaking, an insurance holding
company or a mixed financial holding company within the meaning
of Directive 2002/87/EC, which includes at least one insurance
undertaking among its subsidiary undertakings."
2. in
Article 6(3) the following sentence shall be added:
"The
competent authority which made the request may, if it so wishes,
participate in the verification when it does not carry out the
verification itself."
3. in Article 8(2) the first
subparagraph shall be replaced by the following:
"Member
States shall require insurance undertakings to have in place
adequate risk management processes and internal control
mechanisms, including sound reporting and accounting procedures,
in order to identify, measure, monitor and control transactions
as provided for in paragraph 1 appropriately. Member States
shall also require at least annual reporting by insurance
undertakings to the competent authorities of significant
transactions. These processes and mechanisms shall be subject to
overview by the competent authorities."
4. the following
Articles shall be inserted:
"Article 10a
Cooperation with third countries' competent authorities
1. The Commission may submit proposals to the Council, either at
the request of a Member State or on its own initiative, for the
negotiation of agreements with one or more third countries
regarding the means of exercising supplementary supervision
over:
(a) insurance undertakings which have, as
participating undertakings, undertakings within the meaning of
Article 2 which have their head office situated in a third
country; and
(b) non-member country insurance
undertakings which have, as participating undertakings,
undertakings within the meaning of Article 2 which have their
head office in the Community.
2. The agreements referred
to in paragraph 1 shall in particular seek to ensure both:
(a) that the competent authorities of the Member States are
able to obtain the information necessary for the supplementary
supervision of insurance undertakings which have their head
office in the Community and which have subsidiaries or hold
participations in undertakings outside the Community; and
(b) that the competent authorities of third countries are
able to obtain the information necessary for the supplementary
supervision of insurance undertakings which have their head
office in their territories and which have subsidiaries or hold
participations in undertakings in one or more Member States.
3. The Commission and the Insurance Committee shall examine
the outcome of the negotiations referred to in paragraph 1 and
the resulting situation.
Article 10b
Management
body of insurance holding companies
The Member States
shall require that persons who effectively direct the business
of an insurance holding company are of sufficiently good repute
and have sufficient experience to perform these duties."
5. in Annex I.1.B. the following paragraph shall be added:
"Where there are no capital ties between some of the
undertakings in an insurance group, the competent authority
shall determine which proportional share will have to be taken
account of."
6. in Annex I.2. the following point shall
be added:
"2.4a. Related credit institutions, investment
firms and financial institutions
When calculating the
adjusted solvency of an insurance undertaking which is a
participating undertaking in a credit institution, investment
firm or financial institution, the rules laid down in Article
16(1) of Directive 73/239/EEC and in Article 18 of Directive
79/267/EEC on the deduction of such participations shall apply
mutatis mutandis, as well as the provisions on the ability of
Member States under certain conditions to allow alternative
methods and to allow such participations not to be deducted."
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MORE
INFORMATION ABOUT THE OFFICIAL PRESENTATIONS
We will
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questions of the exam are based on these slides.
You can find
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We also cover the Enhancements to
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- The Financial Conglomerates
Directive (183 slides)
QUESTION:
Why in a Basel ii
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ANSWER:
Because we have a very
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B. The bank is under a mixed financial holding company
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C. The bank is under a financial holding company
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D. The bank is under an insurance holding company
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Only the first 704 slides (first email), that cover the
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To find more:
www.basel-ii-association.com/Distance_Learning_Online_Certification.htm |
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