Identifying Groups as ‘Financial Conglomerates’ Under European Financial Law (Directive 2002/87/EC): A Not So Straightforward Exercise

Abstract

The purpose of this paper, structured in three Sections, is twofold: (a) The first is to analyse the conditions under which a group of financial firms is considered to be a ‘financial conglomerate’ in accordance with the (complex) definition of this term in Article 2 (point (14)) of the ‘Financial Conglomerates Directive’ (FICOD) of the European Parliament and of the Council (Directive 2002/87/EC, as in force) (Section B).

(b) The second is to discuss the precise field of application, ratione personae, of that Directive in accordance with its Article 5 (Section C).

Section A serves as a general introduction to the Directive, providing an overview of its adoption and evolution, its primary and secondary objectives and its field of application (both ratione personae (further analysed then in Sections B and C) and ratione materiae).

Keywords: financial conglomerates, list of financial conglomerates, group-subgroup, regulated entities, mixed financial holding companies, coordinator, financial sector, insurance sector, banking and investment services sector, sectoral rules, significant cross-sector financial activities, financial position

JEL Classification: E44, F65, G01, G21, G22, G23, G24, G28, G32, G34, K20, K23, K33, N24