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
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)