Featured Product

    EIOPA Publishes Results of Peer Review on Propriety of Board Members

    January 25, 2019

    EIOPA published the findings of the peer review examining how national competent authorities assess the propriety of administrative, management, or supervisory body (AMSB) members and qualifying shareholders. EIOPA reviewed national regulatory frameworks and supervisory practices followed by national competent authorities to assess the propriety of AMSB members and qualifying shareholders at the solo and group levels, both at the moment of authorization and on an ongoing basis. Furthermore, EIOPA assessed the effectiveness of cross-border cooperation.

    The report presents the overall findings of the peer review, including identified best practices, case studies, and recommended actions. The report reveals that national competent authorities invest considerable resources in the initial assessment of AMSB members and qualifying shareholders. However, these tend to be seen as a one-off task with few national competent authorities undertaking any ongoing assessments as part of their supervisory activities. Ongoing assessment should involve proactive, risk-based, and proportionate engagement resulting from the national competent authorities' own initiative, as part of its supervisory activities. Other areas that were identified as requiring action from national competent authorities were related to the national legislation or regulatory framework, the propriety assessment questionnaires, and the guidance and supervisory records.

    The review was initiated following a number of cross-border cases indicating a lack of harmonization in relation to the propriety assessment across the European Economic Area, leading to potentially divergent outcomes in different countries in relation to the same person. The review found that complex cross-border cases of propriety assessment can take a long time, hampered by cumbersome information-sharing processes. In relation to the definition of propriety of AMSB members, a significant variation with respect to whether and when to consider ongoing prosecution and pending investigations for criminal and administrative offences became apparent. Overall, the review resulted in 80 recommended actions for 29 national competent authorities. As a result of this peer review, EIOPA will seek to strengthen and support processes of cross-border assessments.

    A key requirement of Solvency II is for insurers to be owned and run by persons of integrity. The primary responsibility to ensure the fitness and propriety of AMSB members at all times rests with insurers, with the national competent authorities conducting their assessment, following the assessment by insurers. Similarly, any acquisition of or changes to qualifying shareholders are subject to review and approval by national competent authorities.

     

    Related Links

    Keywords: Europe, EU, Insurance, Solvency II, Peer Review, AMSB Members, Cross-border Cooperation, Corporate Governance, EIOPA

    Featured Experts
    Related Articles
    News

    BCBS Proposes to Amend Rules on Minimum Haircut Floors for SFTs

    BCBS is consulting on two technical amendments to the rules on minimum haircut floors for securities financing transactions, or SFTs.

    January 26, 2021 WebPage Regulatory News
    News

    BIS Launches Euro Green Bond Fund for Central Banks

    BIS launched a EUR-denominated, open-ended fund for green bond investments by central banks and official institutions, following the launch of the first BIS green bond fund denominated in USD in September 2019.

    January 25, 2021 WebPage Regulatory News
    News

    EBA Announces Stress Test Timeline; ECB Sets Up Climate Change Center

    EBA announced that it will launch the 2021 EU-wide stress test exercise, with the publication of the macroeconomic scenarios on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    BoE Discontinues Form CX on Capital Expenditure and Finance Leasing

    BoE announced that the reporting entities are no longer required to report Form CX after the fourth quarter of 2020 reference period, with the last collection on January 29, 2021.

    January 25, 2021 WebPage Regulatory News
    News

    ECB President Answers Queries on Application of EU Taxonomy

    ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance.

    January 22, 2021 WebPage Regulatory News
    News

    PRA Issues Direction on Capital Buffers, Finalizes PS1/21 on SM&CR

    PRA published a direction for modification by consent of 5.1 to 5.3 and 5.5 of the Capital Buffers Part of the PRA Rulebook.

    January 22, 2021 WebPage Regulatory News
    News

    BIS Innovation Hub Sets Out Work Program for 2021

    BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.

    January 22, 2021 WebPage Regulatory News
    News

    EC Plans to Consult on Crisis Management and EDIS Framework Revisions

    In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.

    January 21, 2021 WebPage Regulatory News
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6495