The Joint Forum (a group of international regulators comprising the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors) has issued a report on supervisory colleges for financial conglomerates.
The report provides information on the implementation of the Joint Forum Principles for the Supervision of Financial Conglomerates and, in particular, Principle 6 relating to supervisory cooperation, coordination and information sharing.
According to the report progress has been made since the previous report in 2011 although there are still certain gaps and issues relating to the implementation of Principle 6. These include:
- not all jurisdictions have in place a specific supervisory framework for financial conglomerates or coordination agreements with other supervisors of financial conglomerates on a cross-sectoral level;
- gaps exist in the coordination of on-site and off-site supervision with other domestic or international supervisors as well as in arrangements or processes for taking enforcement action with other domestic or international authorities; and
- there appears to be insufficient specific mechanisms for supervisory cooperation and coordination in periods of crisis.
The Joint Forum believes that jurisdictions should be allowed further time to implement the Principles. It plans to revisit the identified gaps and issues in a year’s time.
View Report on supervisory colleges for financial conglomerates, 3 September 2014
