Sharon's speech in Plenary session in the European Parliament: Financial Conglomerates, 5th July 2011
A key feature in the supervision of conglomerates is ensuring that there is avoidance of regulatory repetition, but also to have a level playing field viewed from the point of the separate sectoral companies with which they compete. This underlies several amendments and there is the specific point included that all risks are incorporated while eliminating supervisory and prudential overlaps.
Correlation tables are included and happily all institutions agree they are necessary in this instance because it does get complicated fitting in to all the other legislation. More generally I reinforce that correlation tables are vital as part of the European Supervisory Architecture.
Inclusion of uniform reporting formats, frequency and dates within two years of adoption of implementing technical standards has also been agreed and will make supervision easier.
Stress tests are included, but they are neither mandatory nor public, however becoming compulsory is covered in the review clause.
Another matter in the review clause as the rapporteur said, and I am disappointed it is only in the review, is a report on extending the scope of the directive including looking at the material relevance of the financial part of the conglomerate so as to cover the situation where a very large conglomerate's financial part does not pass the threshold for inclusion.
When it comes to the full review we should aim to be bolder and already we have given an indication of areas in which this can be done.