Central Bank Of Ireland Supervisory Review Of Solvency II Firms

Author:Ms Breeda Cunningham and Michele Barker
Profession:Dillon Eustace
 
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Introduction

The Central Bank of Ireland (the "Central Bank") published its programme of themed inspections (the "Programme") on 3 February 2016, indicating its supervisory priorities for 2016 which reflect the full implementation of the Solvency II regime. The purpose of the inspections is to highlight to the Central Bank the areas where Solvency II firms might need to improve their levels of compliance.

We understand that the Central Bank has recently contacted a number of Solvency II firms in order to conduct a supervisory review and to seek information as part of the themed review of Corporate Governance and Operational Risk. We have set out below the typical information sought by the Central Bank in advance of such reviews.

Supervisory Review

In conducting its supervisory review of Solvency II firms, the Central Bank requires the following information be provided in advance of the review and the meeting with the CEO:

A copy of the last two sets of Board Packs and minutes; A copy of the last two sets of sub-committee meeting minutes for both the Audit Committee and Risk Committee; A copy of the risk register and risk appetite statement; Own Risk and Solvency Assessment ("ORSA") for 2015; Appointed Actuary Report for 2015; A copy of the annual assessment of the board's performance in line with Corporate Governance Code requirements; A copy of the latest board and management succession plan; Compliance plan for 2015 and 2016, including a summary of significant findings and the compliance manual; Internal Audit plan for both 2015 and 2016, including copies of reports completed in the past twelve months; A group chart structure; A local organisation chart with details of reporting lines; and A presentation to support the CEO meeting, to include a summary of the business plan, 2015 financial performance and key risks facing the company. Themed Review of Corporate Governance and Operational Risk

In addition, where the Central Bank is undertaking targeted risk assessments under the areas of Corporate Governance and...

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