The Financial Conglomerate Directive (FICOD)—essentials
The Financial Conglomerate Directive (FICOD)—essentials

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • The Financial Conglomerate Directive (FICOD)—essentials
  • Background
  • Definition of a financial conglomerate
  • EU FICOD I—the Amending Directive
  • EU FICOD II—a fundamental review of EU FICOD
  • European Commission’s EU FICOD Evaluation Roadmap
  • Staff working document—conclusions
  • Aligning reporting under EU FICOD
  • UK implementation of EU FICOD and the impact of Brexit
  • More...


Financial conglomerates are large groups with significant activities in more than one financial sector (banking, investment and/or insurance). They tend to be complex in structure, operate across borders and the wider group can contain unregulated entities (from a financial legislation perspective) and entities not involved in financial services. The bancassurance model has traditionally been the most important operating model for financial conglomerates. Bancassurers are groups which combine both banking and insurance business. Bancassurers are able to offer a full range of financial products in a one-stop shopping model—from traditional banking, through mutual funds to insurance products. For insurance companies, the bancassurance model offers new distribution channels with a stable customer base, while banks are able to diversify products and enhance their profitability by selling more products utilising the same infrastructure already in place and hence reducing operating fixed/overhead costs (economies of scale). One-stop-shopping in a bancassurance group provides customers with a variety of financial products, ranging from mortgages to life and non-life insurance. Although the bancassurance model appeared to be popular mainly in Portugal, Spain, Italy, France, Belgium and Austria, and was never the dominant model in Germany, the UK or the Netherlands, in light of its dominance, EU FICOD was developed to focus on the bancassurance model.

Financial conglomerates engage in a range of financial activities which are each regulated by their own sectorial

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