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

    NGFS Updates Address Short-Term Climate Scenarios and Transition Plans

    The Network for Greening the Financial System (NGFS) is exploring the development of short-term climate scenarios to complement its existing scenario framework of long-term climate scenarios.

    May 31, 2023 WebPage Regulatory News
    News

    ISSB Updates Address ESG Issues while IASB Consults on Impairments

    The International Sustainability Standards Board (ISSB) is seeking feedback, until August 09, 2023, on the exposure draft that sets out the methodology proposed by ISSB to amend the Sustainability Accounting Standards Board (SASB) Standards' metrics

    May 30, 2023 WebPage Regulatory News
    News

    OSFI to Review Liquidity Adequacy Guidelines and Policy Architecture

    The Office of the Superintendent of Financial Institutions (OSFI) is consulting, until June 21, 2023, on a review of the liquidity treatment provided in the Liquidity Adequacy Requirements (LAR) Guideline for wholesale funding sources with retail-like characteristics.

    May 30, 2023 WebPage Regulatory News
    News

    ESRB Publishes Report on Cryptos and DeFi; ECB Updates on Digital Euro

    The European Systemic Risk Board (ESRB) published a report that outlines the systemic implications of crypto markets and proposes policy options to address the risks stemming from crypto-assets and decentralized finance or DeFi.

    May 26, 2023 WebPage Regulatory News
    News

    EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation

    The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers

    May 26, 2023 WebPage Regulatory News
    News

    ESAs Propose ESG Disclosure on STS Securitization, Issue Other Updates

    The Joint Committee of the three European Supervisory Authorities (ESAs) proposed to amend the Implementing Regulation 2016/1799 on the mapping of External Credit Assessment Institutions' (ECAIs) credit assessments.

    May 26, 2023 WebPage Regulatory News
    News

    UK Authorities Issue Updates, Finalize Policy on Model Risk Management

    The Prudential Regulation Authority (PRA) finalized the model risk management principles for banks, the policy statement PS5/23 on risks from contingent leverage, and PS4/23 on moving senior managers regime forms from the PRA Rulebook.

    May 25, 2023 WebPage Regulatory News
    News

    APRA Revises Implementation Timeline for Operational Risk Standard

    The Australian Prudential Regulation Authority (APRA) updated the implementation date of the new cross-industry prudential standard CPS 230 on operational risk management

    May 25, 2023 WebPage Regulatory News
    News

    BCBS Consults on Basel FAQs and Amendments, Issues Other Updates

    The Basel Committee on Banking Supervision (BCBS) published a report assessing implementation of the global Basel standards on net stable funding ratio (NSFR) and large exposures (LEX) in South Africa

    May 25, 2023 WebPage Regulatory News
    News

    EBA Announces Multiple Regulatory and Reporting Updates in April 2023

    The European Banking Authority (EBA) published consultations on the amendments to the guidelines on risk-based anti-money laundering and countering the financing of terrorism (AML/CFT) supervision

    May 24, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8911