1. This paper outlines a general framework for facilitating information-sharing between supervisors of regulated entities within internationally active financial conglomerates. This paper is the result of the work of a Task Force established by the Joint Forum on Financial Conglomerates to examine the structure and operations of several large internationally active financial conglomerates (hereinafter referred to as the Task Force). Although the focus was on large international groups, the Joint Forum believes that the lessons drawn could also apply to smaller conglomerates or conglomerates that operate domestically.
2. Given the internationalisation of financial markets and the growth of emerging market economies, the paper draws attention to the need for enhancing communication links which currently exist primarily within each supervisory sector and facilitating information sharing between supervisors involved in the supervision of international financial conglomerates.
3. This paper is intended to complement the work of the Joint Forum on a number of topics relating to supervisory issues arising from the operations of financial conglomerates, e.g. the Capital Adequacy Principles paper, the Fit and Proper Principles paper, the Coordinator paper, and the Principles for Supervisory Information Sharing paper. The observations and recommendations in this paper should be considered in conjunction with those documents.
4. The framework presented takes account of existing networks of information sharing whereby information flows along established channels of communication, particularly between supervisors in the same sector. Numerous bilateral arrangements exist between supervisors providing for the flow of general and specific supervisory information, in some cases in respect to individual financial conglomerates. This paper is intended to facilitate the evaluation, and where necessary, enhance and expand those information flows.
