Basel ii and the Financial Conglomerates Directive - New Service from Compliance LLC

Compliance LLC today announced that it has launched a new web site and new courses in the Financial Conglomerates Directive and the Basel ii implementation in the European Union.

Wilmington, DE, March 07, 2007 --( Compliance LLC, a leading provider of Basel ii, Sarbanes Oxley, MiFID and EU Financial Services Action Plan training, executive coaching and consulting in more than 30 countries, today announced the launch of a new web site, that is focused on the interaction between Basel ii and the European Union’s Financial Conglomerates Directive.

“There are many common elements in both compliance projects, the Capital Requirements Directive (Basel ii in the EU) and the Financial Conglomerates Directive,” said George Lekatis, General Manager and Chief Compliance Consultant of Compliance LLC. 

“Both directives try to ensure that: 

“1. Financial conglomerates are adequately capitalised. 

“2. The same capital is not being counted twice – is not used as a buffer against risks in different entities. 

“3. Conglomerates calculate their overall solvency position. 

“4. There is only one lead regulator for financial conglomerates and not many national regulators that understand only a part of what is really happening in the conglomerate. The lessons learned from the BCCI appear in several directives of the European Union’s Financial Services Action Plan. The Financial Conglomerates Directive is definitely one of them. 

In the Financial Conglomerates Directive we have the “co-coordinating supervisor”, not so different from the “consolidating supervisor” we have in Basel ii / Capital Requirements Directive. 

Conglomeration across financial sectors, especially between insurance and banking is definitely an opportunity, but is can also be a risk for the stability of the financial system. It is easier to spread risks, but it can also give rise to new ones. 

The Financial Conglomerates Directive tries to introduce supplementary supervision of financial conglomerates on a group-wide basis, in addition to both the prudential supervision of regulated entities on a standalone basis and consolidated supervision on a sectoral basis. 

“I can not imagine how we can implement Basel ii in several financial organizations, if we do not take into account the requirements of the Financial Conglomerates Directive,” continued George Lekatis.

“There is also significant extraterritorial application of this EU regulation. Firms that are headquartered outside the EU and are operating in EU markets, must be subject to supervision at the holding company level by a competent home country authority, supervision that must be equivalent to that provided for by the provisions of the Directive,” said George.

“If you visit the web site you will find the text sections of the directive in an easy to read format,” said Lyn Spooner, Marketing Manager of Compliance LLC. 

“Compliance LLC is also offering in-company awareness and training courses. This is the first choice for many companies, fully tailored training, presented exclusively for your own people. We will work on your premises or at a venue of your choice, on a fixed fee per day, for teams from 2 to 50. There are special presentations for the Board of Directors and Executive Management, an overview of the Financial Conglomerates Directive, and training that can be tailored to your needs. Presentations recommended for managers and professionals who need to speak the specialized language of Basel ii, which must become the common language throughout their organization,” continued Lyn.

About Compliance LLC
Compliance LCC is a leading international provider of Basel ii, Sarbanes Oxley, MiFID and EU Financial Services Action Plan training, executive coaching and consulting. Work in more than 30 countries, providing excellent personalized solutions to companies and organizations of the private and the public sector.

For further information, contact Lyn Spooner, E-mail:, Tel: +1 (302) 342-8828 Ext 1, or George Lekatis, E-mail:, Tel: +1 (302) 342-8828 Ext 5.

Web sites include:

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Compliance LLC
George Lekatis
(302) 342-8828
1220 N. Market Street Suite 804
DE 19801

Lyn Spooner: +1 (302) 342-8828 Ext 1
Cynthia Rast: +1 (302) 342-8828 Ext 2
John Ritt: +1 (302) 342-8828 Ext 3
Elmyra Branley: +1 (302) 342-8828 Ext 4