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
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