“The Joint Forum has today released its report on supervisory colleges for financial conglomerates. The report, the result of a recent self-assessment survey of Joint Forum members, presents findings on how far cross-sectoral issues, and specific questions related to financial conglomerates, are effectively addressed within supervisory colleges. This stocktaking exercise also 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. The Joint Forum notes the general progress that has been made in this area since the previous study in 2011, however the present report identified several gaps and issues in relation to the implementation of Principle 6, such as:

• not all jurisdictions have in place a specific supervision framework for financial conglomerates or coordination agreements with other supervisors of financial conglomerates on a cross-sectoral level. Gaps also exist in the coordination of on-site and off-site supervision with other domestic or international supervisors, and in arrangements or processes for taking enforcement actions with other domestic or international authorities; and
• there appear to be insufficient specific mechanisms for supervisory cooperation and coordination in periods of crisis/stress, thereby possibly hindering effective intervention in times of crisis.

The Joint Forum was established in 1996 under the aegis of the Basel Committee on Banking Supervision (BCBS), the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS) to deal with issues common to the banking, securities and insurance sectors, including the regulation of financial conglomerates.”