Study On Several Legal Issues Of Supervision Of Financial Conglomerates

Financial conglomerate is the result of the integration and synthesis of financial service industry, and the reflection of the modern financial service. Because financial conglomerate broke the wall between traditional financial sectors, it arouses new problems of supervision. In the late 20th century and early this century, some important international financial supervisory institutions and countries with highly developed financial industry passed several documents and acts relating to the supervision of financial conglomerates. These documents and acts are of great significance in studying how to supervise financial conglomerates.This paper mainly studies on Supervision of Financial Conglomerates released by the Joint Forum; Gramm-Leach-Bliley Act of 1999 and Directive 2002/87/EC. And the paper is about the following four aspects: supervision object, supervisors, supervision aspects and supervision approaches. Lastly, according to the current situations of China's financial industry, this paper summarizes some points which are worth learning to China.Chapter 1 deals with the question of"Who is to be supervised". It defines financial conglomerate, while at the same time analyses the special risks of it and brings several supervision problems forward. In Chapter 2-4, the paper analyses those problems and proposes the way to resolve them. Chapter 2 deals with the question of"Who is supervising". It analyses US's and England's two different models of supervision and makes a comparison of the two. Chapter 3 deals with the question of"What to supervise". It discusses supervision of capital adequacy, intra-group transactions, risk concentrations and fit and proper principles. Chapter 4 deals with the question of"How to supervision". It mainly discusses the mechanism of information sharing and the system of coordinators. And the last chapter introduces the development and specialties of China's financial conglomerates. And on that basis, the paper gives some effective advice on supervision of China's financial conglomerates.