| |
The Financial Conglomerates
Directive
from the Basel
ii Compliance Professionals Association (BCPA)
the largest Association
of Sarbanes Oxley professionals in the
world
SECTION 2: FINANCIAL POSITION
Article 6
Capital adequacy
1. Without prejudice to the sectoral rules,
supplementary supervision of the capital adequacy of the regulated
entities in a financial conglomerate shall be exercised in
accordance with the rules laid down in Article 9(2) to (5), in
Section 3 of this Chapter, and in Annex I.
2. The Member States shall require regulated entities
in a financial conglomerate to ensure that own funds are available
at the level of the financial conglomerate which are always at least
equal to the capital adequacy requirements as calculated in
accordance with Annex I.
The Member States shall also require regulated
entities to have in place adequate capital adequacy policies at the
level of the financial conglomerate.
The requirements referred to in the first and second
subparagraphs shall be subject to supervisory overview by the
coordinator in accordance with Section 3.
The coordinator shall ensure that the calculation
referred to in the first subparagraph is carried out at least once a
year, either by the regulated entities or by the mixed financial
holding company.
The results of the calculation and the relevant data
for the calculation shall be submitted to the coordinator by the
regulated entity within the meaning of Article 1 which is at the
head of the financial conglomerate, or, where the financial
conglomerate is not headed by a regulated entity within the meaning
of Article 1, by the mixed financial holding company or by the
regulated entity in the financial conglomerate identified by the
coordinator after consultation with the other relevant competent
authorities and with the financial
conglomerate.
3. For the purposes of calculating the capital
adequacy requirements referred to in the first subparagraph of
paragraph 2, the following entities shall be included in the scope
of supplementary supervision in the manner and to the extent defined
in Annex I:
(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;
(b) an insurance undertaking, a reinsurance
undertaking or an insurance holding company within the meaning of
Article 1(i) of Directive 98/78/EC;
(c) an investment firm or a financial institution
within the meaning of Article 2(7) of Directive
93/6/EEC;
(d) mixed financial holding
companies.
4. When calculating the supplementary capital adequacy
requirements with regard to a financial conglomerate by applying
method 1 (Accounting consolidation) referred to in Annex I, the own
funds and the solvency requirements of the entities in the group
shall be calculated by applying the corresponding sectoral rules on
the form and extent of
consolidation as laid down in particular in Article 54
of Directive 2000/12/EC and Annex I.1.B. of Directive
98/78/EC.
When applying methods 2 or 3 (Deduction and
aggregation, Book value/Requirement deduction) referred to in Annex
I, the calculation shall take account of the proportional share held
by the parent undertaking or undertaking which holds a participation
in another entity of the group.
‘Proportional
share’ means the proportion of the
subscribed capital which is held, directly or indirectly, by that
undertaking.
5. The coordinator may decide not to include a
particular entity in the scope when
calculating the supplementary capital adequacy requirements in the
following cases:
(a) if the entity is situated in a third country where
there are legal impediments to the transfer of the necessary
information, without prejudice to the sectoral rules regarding the
obligation of competent authorities to refuse authorisation where
the effective exercise of their supervisory functions is
prevented;
(b) if the entity is of negligible interest with
respect to the objectives of the supplementary supervision of
regulated entities in a financial
conglomerate;
(c) if the inclusion of the entity would be
inappropriate or misleading with respect to the objectives of
supplementary supervision.
However, if several entities are to be excluded
pursuant to (b) of the first subparagraph, they must nevertheless be
included when collectively they are of non-negligible
interest.
In the case mentioned in (c) of the first subparagraph
the coordinator shall, except in cases of urgency, consult the other
relevant competent authorities before taking a
decision.
When
the coordinator does not include a regulated entity in the scope
under one of the cases provided for in (b) and (c) of the first
subparagraph, the competent authorities of the Member State in which
that entity is situated may ask the entity which is at the head of
the financial conglomerate for information which may facilitate
their supervision of the regulated entity.
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 |
| | |
