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
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206