A joint meeting of global regulators has issued new principles for supervising financial conglomerates.

The Basel Committee on Banking Supervision, the International Organisation of Securities Commissions and the International Association of Insurance Supervisors are closing regulatory gaps and eliminating supervisory “blind spots”.

The principles address supervisory responsibility, corporate governance, capital adequacy and liquidity and risk management.

Joint forum chairman Therese Vaughan says worldwide adoption of the principles will strengthen the global financial system.

She says the principles should be applied to large financial conglomerates that operate internationally.