Council of the European Union and European Parliament 16 December 2002, Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council

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Directive 2002/87/EC establishes rules for the supplementary supervision of credit institutions, insurance undertakings, and investment firms within financial conglomerates, aiming to address prudential supervision gaps due to cross-sectoral financial activities. Key provisions include the requirement for competent authorities to assess solvency, risk concentration, and intra-group transactions at the conglomerate level, while ensuring cooperation among supervisory bodies. The directive applies to all significant financial conglomerates and mandates that Member States may implement stricter regulations, thereby enhancing the overall stability of the financial system.AI