The Joint Committee on Financial Conglomerates (JCFC) is a European Level-3 committee that works for European convergence in the supervision of financial conglomerates. In practice, the JCFC operates as an add-on to the CEBS (European banking supervisors) and the CEIOPS (European insurance supervisors). Similarly, the Financial Conglomerates Directive (FCD), the European Directive on the supervision of financial conglomerates, is a supplement to the CRD and the Solvency Directive. The JCFC may be seen as the European counterpart to the global Joint Forum.
The members of the JCFC represent the supervisors in the 27 Member States and three observer states, the European Commission and the three Level-3 comittees. The JCFC is chaired by Patrick Brady (of the Irish IFSRA) and co-chaired by Thomas Schmitz-Lipperts (of the German Bafin). It meets four times a year, alternating between Frankfurt and London as the venue.
The JCFC works for European convergence in the supervision of financial conglomerates, primarily from the perspective of the FCD, but fully aware of the necessary convergence with the supervision of banking and insurance groups.
The main activity of the JCFC in 2009 is performing a review of the FCD at the request of the European Commission. As part of the review, a public consultation is expected to be held in the course of 2009.
In October 2005, the CEBS, the CEIOPS and the European Comission agreed to erect a structure for the elaboration of the FCD. Initially, this resulted in the creation of the Interim Working Committee on Financial Conglomerates (IWCFC). In 2009, the IWCFC was renamed Joint Committee on Financial Conglomerates.
European System of Financial Supervision
The European Union has drawn important lessons from the events of the credit crisis and introduced a reform of financial supervision on 1 January 2011. The reform consisted of the creation of a European System of Financial Supervision. This System includes three European microprudential supervisory authorities (European Supervisory Authorities or ESAs): one for the banking industry, one for the securities trade and one for the insurance and occupational pension sector. A cross-sectoral network (the Joint Committee) has been set up to safeguard cross-sectoral consistency in the European supervision performed by the ESAs. Its scope will also include the Joint Committee on Financial Conglomerates.