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Part II Prudential Regulation, 9 The Prudential Supervision of Cross-border Groups

From: The Law of Financial Services Groups

Charles H R Morris

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 20 September 2021

Subject(s):
Banks and cross-border issues — Regulation of banks — Withdrawal from the Eurozone and currency — Prudential regulation — Regulators

This chapter examines how the principles of prudential supervision are applied on a cross-border basis for international groups with multiple regulators, including after Brexit. To this day, the prudential regulation of financial services groups remains dependent upon, and built around, national or federal regulation, albeit in the context of a greater-or-lesser degree of international cooperation. In order, therefore, to understand how a cross-border group is prudentially regulated, it is necessary to start from an understanding of the impact of the national and federal regulatory regimes, and then to determine the priorities of, and points of conflicts and overlap between, such regimes. EU regulation, as it has developed over recent decades, has aimed to address systematically these issues within cross-EU groups. This has largely been made possible by the harmonization of the substantive prudential regulatory requirements across the EU, which in turn allows for the smoother integration of, and interaction between, different Member States’ regimes. This nonetheless leaves the dynamics arising in groups that straddle the EU and UK, or the EU/UK and other jurisdictions unaddressed.

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