Featured Product

    NBB Updates Circular on Governance and Cloud Outsourcing for Insurers

    May 05, 2020

    NBB published an update of its overarching circular (NBB_2016_31) on governance for the insurance sector. The entry into force of the Companies and Associations Code, the new EIOPA guidelines on cloud outsourcing and remuneration, and other regulatory developments require an update of this circular. NBB_2016_31 sets out the expectations of NBB with regard to governance for the insurance and reinsurance sectors. All changes to the overarching circular on governance come into effect immediately, with the exception that new recommendations on outsourcing and remuneration shall apply from 2021. NBB also published a circular with recommendations on outsourcing to cloud service providers. The circular implements the recommendations of EIOPA.

    The main updates to the overarching circular on governance include the following:

    • Indication of how to reconcile the new rules of the Companies and Associations Code with prudential governance requirements
    • Simplification of the rules on the distribution of tasks between members of the management committee
    • Revision of Chapter 7 on outsourcing to reinforce the operational resilience of insurance and reinsurance companies and to assign a specific monitoring responsibility to the compliance and internal audit functions
    • Revision of Chapter 8 on remuneration to clarify the prudential expectations to be met by Identified Staff receiving significant variable remuneration, in accordance with the recommendations proposed by EIOPA
    • Update of Chapter 10 on IT infrastructure to emphasize cyber security and compliance with the new rules on cloud outsourcing
    • Introduction of certain recommendations on sustainable finance

    The general rules on outsourcing have been set out in Article 274 of the EU Delegated Regulation 2015/35, which supplements the Solvency II Directive, and in Chapter 7 of the overarching circular on governance (NBB_2016_31). NBB circular on recommendation on outsourcing to cloud service providers should be read in conjunction with Chapter 7 of the overarching circular on governance. These recommendations transpose the guidelines on outsourcing to cloud service providers, as published by EIOPA on February 06, 2020, into Belgian regulations.


    Related Links

    Effective Date: May 05, 2020/Year 2021

    Keywords: Europe, Belgium, Insurance, Governance, Solvency II, Cloud Outsourcing, Sustainable Finance, Operational Risk, Cyber Risk, Remuneration, NBB

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    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.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    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.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    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.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    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

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    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.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    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)

    October 31, 2022 WebPage Regulatory News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    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)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582