Montenegro proposes new financial conglomerate regulation thresholds

The Government of Montenegro has proposed amendments to the Law on Financial Conglomerates, significantly raising the thresholds for determining financial conglomerates and additional supervision. The changes aim to align Montenegrin legislation with European Union legal standards, specifically Directive 2002/87/EC, as a prerequisite for closing Negotiation Chapter 9 regarding Financial Services.

The most notable change involves increasing the balance sheet threshold for the smallest financial sector within a group from 100 million euros to 6 billion euros. Additionally, the threshold for additional supervision of financial conglomerates will rise from 80 million euros to 5 billion euros. The proposal also clarifies the status of voluntary pension fund management companies, ensuring they are integrated into their respective financial sectors to prevent regulatory gaps.