The Directive on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, known as FICOD, was first adopted in 2002. Financial conglomerates are large financial groups which provide services and products in the banking/investment and insurance sectors.
FICOD aims to identify and manage risks that are inherent to these groups active in several financial sectors to ensure financial stability. FICOD does not replace the existing supervision of the different, regulated financial conglomerate sectors (banking, investment and insurance) but it introduces a layer of supplementary supervision of the regulated entities in the conglomerate.
This allows supervisors to look across sectors and address any potential blind spots in the sectoral legislation. There have been many changes in both the market and in the EU policy and legislative framework since FICOD was adopted. Therefore, the Commission services decided last year that FICOD should be evaluated to assess whether it is proportionate and fit for purpose, and delivering as expected.
This consultation is part of the Commission's Regulatory Fitness and Performance Programme ("REFIT"). Through this consultation, Commission services are actively seeking the opinions of interested and affected groups on the performance of FICOD; the results of this consultation will feed into the final evaluation. The public consultation runs from 9 June 2016 to 20 September 2016.
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Consultation paper
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