France: Financial Sector Assessment Program-Technical Note on Supervision of Financial Conglomerates and Less Significant Financial Institutions

International Monetary Fund

No 2025/239, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper analyzes a technical note on supervision of financial conglomerates and less significant financial institutions in France. The EU approach on financial conglomerates with the concept of supplemental supervision is largely effective to address risks that remained potentially unaddressed under specific sectoral regimes. Supervision of less significant institutions (LSI) is effective in France. The paper highlights the main recommendations to enhance the supervision of banking and insurance activities conducted in France with a direct bearing on its financial stability. These recommendations are focused on the supervision of financial conglomerates and LSI. The review underscores the necessity to ensure that the funding of the Autorité de Contrôle Prudentiel et de Résolution (ACPR) provides adequate resourcing while respecting their financial autonomy, through conducting a bottom-up review of supervisory resources and needs, with a forward-looking focus on adequate capacity for managing an increasingly complex regulatory environment. It is recommended that the practice of periodic benchmarking of supervisors' salaries against relevant industry peers be implemented, with findings summarized and presented to the ACPR General Secretariat and Supervisory College for review.

Keywords: markets in financial instruments directive; market landscape; markets authority; securities commission; markets in financial instruments regulation; Financial conglomerates; Financial conglomerates supervision; Capital adequacy requirements; Financial sector stability; Insurance; Global; Europe (search for similar items in EconPapers)
Pages: 54
Date: 2025-08-29
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