BaFin launched consultation (17/2019) on a circular that provides guidance on minimum regulatory requirements for the "business organization of small insurance companies,” in accordance with Section 211 of the Insurance Supervision Act. This circular is based on the approach that the directors of a company have the overall responsibility for proper and effective governance of the company. The scope of this circular covers all primary insurance companies supervised by BaFin that fulfill the conditions set out in Section 211 of the Insurance Supervision Act. The closing date for the comment period on this consultation is December 08, 2019.
The key topics covered in the draft circular include proportionality, responsibility of management, significant risks, general business organization requirements, risk management, internal control framework, and spin-offs. The draft circular highlights that the principle of proportionality plays a significant role in the implementation of business organization requirements. On January 25, 2017, Circular 2/2017 on “Regulatory Minimum Requirements for the Business Organization of Insurance Companies” was published. The scope of Circular 2/2017 covered all companies to which the Solvency II Directive applies but it did not apply to the small insurance companies. However, the planned new circular will address the "business organization requirements" for these small insurance companies.
Related Links (in German)
Comment Due Date: December 08, 2019
Keywords: Europe, Germany, Insurance, Insurance Supervision Act, Proportionality, Governance, Operational Risk, Small Insurance Companies, BaFin
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
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.
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.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
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.
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.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.