The trend towards consolidation of financial institutions from different sectors of the world financial market (insurance companies, banks, investment companies, pension funds) and their penetration into the functionally new markets has led to the emergence of the new organizational and institutional form of financial convergence - financial conglomerate. The purpose of the article is to identify and assess the directions of modifying the state and interstate regulation of financial conglomerates. Research methodology is based on the methods of comparative and factor analysis. The results of the study. The main causes of financial conglomerates' regulation failures of are: 1) the lack of a precise definition of "financial conglomerate"; (2) the homogeneity of regulation, when the participants of the conglomerate operate in different sectors of the financial market. The choice of the model of financial market regulation (regional, functional, mega-regulation) is determined by the legal system of the country where FC is based. There are new challenges for regulators: the legitimate empowerment of large financial players, increase in their number; lack of regulation, ensuring their solvency; the development of the new complex financial services; the contradiction between international character of financial conglomerates and the national basis of their regulation. The article proposes a matrix of the state and interstate regulation of financial conglomerates, consisting of four components. The “institutions of prudential regulation” should focus on safety and solvency of individual entities of the financial conglomerate; "consumer protection" should be based on reducing the likelihood of the incomplete factors of client's awareness, integrating the specificities of the national financial markets, unfair terms of contracts, the imputed schemes, etc. Creating a system of interstate regulation and supervision with the aim to anticipate possible failures in the functioning and stability of the financial system as a whole and its individual systemically important parts. "The competition" - the supervision of financial conglomerates on the subject of price collusion, lack of competition, artificial entry barriers, and social responsibility.