ACPR on Assessment of Reputation of Board Members of Insurance Firms
ACPR published, in the Official Register, a "position" on the assessment of the good repute of the members of Board of Directors or Supervisory Board of organizations in the insurance sector. ACPR states that insurance, reinsurance, or supplementary occupational pension bodies must have a governance system guaranteeing sound and prudent management of their activity; it should be subject to regular re-examination. The key topics discussed in the position include repute criteria in national and European law, in addition to the regular assessment of good repute of the members of Board of Directors or Supervisory Board by organizations.
The members of Board of Directors or Supervisory Board must have the competence and experience required for their duties at all times. They are assessed by ACPR on matters of good repute, individually, when applying for accreditation or extending the accreditation of the body in which they exercise their functions. Their competence and experience are also assessed on these occasions, on a collective basis. However, appointments made in other contexts do not have to be notified to ACPR. The ACPR Supervisory College may oppose the continuation of the mandate of one or more individuals who are members of the Board of Directors or Supervisory Board if it finds that they no longer meet the conditions of good repute, competence, and experience applicable to them.
Following an assessment of the application of the governance requirements for the good repute of the members of the administrative, management, or supervisory bodies and of the qualified shareholders, EIOPA recommended national supervisors to ensure that the integrity of the directors and members of the Supervisory Board is continuously monitored using a risk-based approach. This assessment is the responsibility of organizations. Consequently, the purpose of this position is, after clarifying the concept of good repute with regard to French and European regulatory requirements, to present the methods by which organizations can carry out this assessment.
Related Link (in French): ACPR Position (PDF)
Keywords: Europe, EU, France, Insurance, Reinsurance, Governance, Risk-based Approach, Operational Risk, ACPR, EIOPA
Previous Article
BIS Paper Examines How Non-Traditional Data Affect Credit ScoringRelated Articles
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
ESMA Responds to Proposal Related to Sustainability Standards Board
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.
