EC requests that Hungary implement EU rules

EU

The European Commission in the form of a reasoned opinion asked Hungary, Luxembourg and Poland to implement the first amendment of the Financial Conglomerates Directive, Hungarian news agency MTI reported today citing an EC announcement.

MTI noted that a reasoned opinion is a second step in infringement procedures. The first step was launched by EC in April, 2014, when the commission sent letters of formal notice to the countries, MTI added.

The EC might decide to refer the member states to the European Union’s Court of Justice if they fail to comply within two months, MTI said. Member states were required to implement the amendments by June 2013, with the exception of provisions relating to alternative investment managers where the deadline was July 2013, MTI added.

However, these three countries have failed to notify all the necessary measures to the European Commission, as such the Commission cannot conclude that complete implementation of these rules into national law has taken place, the EC statement said.

The directive in question (Directive 2011/89/EU, "FICOD1") tackled supplementary supervision of financial entities in a financial conglomerate - financial groups which have significant activity in both the banking/investment and insurance sectors, MTI said, adding that FICOD1 was adopted as a ʼquick fixʼ directive to address gaps in supplementary supervision revealed during the crisis, in particular allowing supervisors to apply both sectorial and supplementary supervision simultaneously.

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