The art of Consolidated Supervision is to balance the
consideration of the group as a single economic entity
(across which risks can be diversified and/or concentrated)
and the consideration of the group as a set of separate
legal entities.
There may be different perspectives on whether a group
can be treated entirely as a single entity, and whether
solo supervision should continue; it is worth noting
that regulators license individual legal entities, not
groups, an these individual regulated entities remain
their primary focus. Not all of a group’s supervisors
will necessarily be based in the same Member State, nor
even within the EU. Hence home/host issues are of crucial
importance when assessing the needs and effectiveness
of Consolidated Supervision.
