Insurance Regulatory Update – April 2014

Author:Ms Elizabeth Bothwell and Jennifer McCarthy
Profession:Arthur Cox
 
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APRIL 2014 - THIS MONTH'S NEWS

CENTRAL BANK PUBLISHES FAQ FOR THE CORPORATE GOVERNANCE CODE FOR CREDIT INSTITUTIONS AND INSURANCE UNDERTAKINGS 2013 CENTRAL BANK PUBLISHES ANNUAL REPORT FOR 2013 CENTRAL BANK DEPUTY GOVERNOR'S ADDRESS TO THE DELOITTE FUTURE OF PRUDENTIAL REGULATION BRIEFING CENTRAL BANK'S FLAOR REPORT UPLOAD FACILITY NOW AVAILABLE FOR HIGH & MEDIUM HIGH INSURANCE UNDERTAKINGS INSURANCE IRELAND WELCOMES PWC REPORT 'CREATING THE FUTURE FOR INSURANCE IN IRELAND' EIOPA LAUNCHES INSURANCE STRESS TEST AND PUBLISHES SOLVENCY II TECHNICAL SPECIFICATIONS JOINT FORUM PUBLISHES POINT OF SALE DISCLOSURE IN THE INSURANCE, BANKING AND SECURITIES SECTORS INSURANCE EUROPE PUBLISHES STATISTICS ON THE EUROPEAN LIFE INSURANCE MARKET FOR 2012 EIOPA PUBLISHES CONSULTATION PAPER ON SET 1 OF ITS IMPLEMENTING TECHNICAL STANDARDS FOR SOLVENCY II EIOPA DEVELOPS A COMMON APPLICATION PACKAGE FOR INTERNAL MODELS OMNIBUS II ADOPTED PARLIAMENT ADOPTS REGULATION ON A KEY INFORMATION DOCUMENT FOR PACKAGED RETAIL INVESTMENT PRODUCTS MIFID II AMENDMENTS TO IMD1 EIOPA UPDATES Q&A ON SOLVENCY II GUIDELINES IN DOMESTIC NEWS...

CENTRAL BANK PUBLISHES FAQ FOR THE CORPORATE GOVERNANCE CODE FOR CREDIT INSTITUTIONS AND INSURANCE UNDERTAKINGS 2013

On 31 March, the Central Bank published a Frequently Asked Questions document (FAQ) for the Corporate Governance Code for Credit Institutions and Insurance Undertakings 2013 (the Code). The FAQ was drafted on the basis of queries received by the Central Bank in relation to the Code and is intended to be used for guidance purposes only. The FAQ will apply from the same date as the new Code i.e. 1 January 2015. The existing FAQ document (issued in 2010) and existing Corporate Governance Code (2010) will continue to apply in the interim period.

The sections of the FAQ broadly reflect each section of the Code. The FAQ includes:

guidance on the newly established role of the Chief Risk Officer; specific guidance on committees of the board, the additional requirements in respect of the Risk Committee, composition of committees and cross-membership between board sub-committees; guidance in relation to the composition of the board, including INEDs and group directors, and requirements regarding attendance at board meetings; practicalities around holding board meetings by electronic means; considerations for directors including limits on directorships, and the exclusion for directorships held in the public interest on a voluntary and pro bono basis; considerations in relation to the roles of the Chairman and Chief Executive Officer; and guidance on the requirements regarding the compliance statement and its submission to the Central Bank. A link to the FAQ is here.

CENTRAL BANK PUBLISHES ANNUAL REPORT FOR 2013

On 30 April, the Central Bank published its Annual Report 2013 and its Annual Performance Statement - Financial Regulation 2013-2014. Both documents contain summaries of the Central Bank's activities in the insurance sector over the course of 2013, including data in relation to the number of (re)insurance licence authorisations and revocations by the Central Bank. Certain key action points are highlighted for 2014 (separate to the Programme of Themed Reviews and Inspections 2014, and its Enforcement Priorities in 2014, which were published earlier this year). Key action points the Central Bank will focus on over the coming year include:

anti-money laundering and counter terrorist financing; consumer...

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