Importance At the current step of their integration, insurance companies and banks converge and concentrate their operations, thus creating financial conglomerates. The financial conglomerate can concurrently encompass banking services, insurance and other financial services under its umbrella structure. Objectives The research examines the specifics of financial conglomerates' operations in the global and domestic financial markets. Methods I applied methods of analysis, logic summary, comparison to study the salience of financial conglomerates and their activity in developed countries. Results I investigated the specifics of financial conglomerates in the EU, USA and Russia and identified the main premises for financial conglomerates to penetrate the banking and insurance sectors of Russia. The article classifies financial conglomerates and presents my proposals for effective corporate management of financial conglomerates in Russia. Conclusions and Relevance Financial conglomerates in the EU and USA operate in line with the principles of transnational corporations. As opposed to developed countries where financial conglomerates are mostly incorporated vertically (combination of banks, insurance and investment companies), Russia demonstrates the tendency for banking groups and holding companies. In Russia, financial conglomerates should operate on the corporate governance principles.
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