8. The capital adequacy requirements (and other features of the financial control regimes) that banking, securities and insurance supervisors prescribe for the institutions and groups within their own jurisdictions are taken as given. Supervisors may wish to exercise their judgement on the degree to which they will rely on the application of these requirements in jurisdictions which do not apply similar standards of supervision. The requirements within each sector are not in all cases uniform, but the trend is towards convergence within each sector. Further progress on the elaboration and convergence of capital adequacy requirements in the insurance sector is however desirable, including for insurance groups.

9. The elaboration of acceptable techniques of capital measurement for heterogeneous financial conglomerates does not preclude the use of an accounting-based consolidation approach, or other prudent approaches that meet objectives analogous to those in paragraph 1, for financial conglomerates made up of homogeneous entities.