This update was first published in the February 2012 International edition of Accounting and Business magazine
National financial regulators across the EU gained new powers on 9 December 2011. They now have the right to demand accounts information from major financial conglomerates which may trade in many member states.
The change comes in amendments to EU financial conglomerate directive 2002/87/EC through the amending directive 2011/89/EU.
It frees regulators to assess banking and insurance information – where before they had to choose between the two – and to demand supplementary information to make sure that a conglomerate is in rude financial health.
The change follows concerns about management failures in such groups during and before the 2008 financial crisis.
Keith Nuthall, journalist