Insurance Regulatory Update - November 2014

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

CENTRAL BANK PUBLISHES FITNESS AND PROBITY STANDARDS 2014 CENTRAL BANK PUBLISHES UPDATED REQUIREMENTS FOR REINSURANCE UNDERTAKINGS CENTRAL BANK PUBLISHES CONSULTATION PAPER ON THE USE OF NATIONAL SPECIFIC TEMPLATES FOR SOLVENCY II DEPARTMENT OF FINANCE BEGINS PUBLIC CONSULTATION ON SOLVENCY II CENTRAL BANK PUBLISHES SOLVENCY II PHASING-IN APPROVALS SURVEY CENTRAL BANK PUBLISHES SKILLED PERSONS' REPORTING - STATEMENT OF PROPOSED USE CENTRAL BANK PUBLISHES INDUSTRY LETTER REGARDING PROTECTED DISCLOSURES INSURANCE EUROPE ISSUES PRESS RELEASE ON THE INSURANCE BLOCK EXEMPTION REGULATION EIOPA'S 4th ANNUAL CONFERENCE HELD IN FRANKFURT, GERMANY SOLVENCY II IMD2 - COUNCIL OF THE EUROPEAN UNION AGREES A GENERAL APPROACH ON IMD2 KEY INFORMATION DOCUMENTS FOR PRIIPS IN DOMESTIC NEWS...

Central Bank Publishes Fitness And Probity Standards 2014

On 3 November, the Fitness and Probity Standards 2014 (the 2014 Standards) were published. The 2014 Standards supplement/amend the Fitness and Probity Standards 2011 (the 2011 Standards). The Central Bank has also introduced revised Guidance on Fitness and Probity Standards and a new Fitness and Probity FAQ document which provide some additional information.

The 2011 Standards have been amended in two ways. Firstly, the 2011 Standards have been amended in recognition of the change introduced by the European Single Supervisory Mechanism. The European Single Supervisory Mechanism was implemented at a European level in order to ensure the safety and soundness of the European banking system and requires the regulated financial service provider to notify the European Central Bank of the appointment of a person performing a pre-approval controlled function (PCF) to the management board of "significant credit institutions". Secondly, the 2014 Standards reflect the clarified position in relation to certified persons under the Investment Intermediaries Act, 1995 in the context of the outsourcing exemption that can apply when PCFs or controlled functions are outsourced to a regulated financial service provider.

A link to the Fitness and Probity Standards 2014 is here.

A link to the Guidance on Fitness and Probity Standards is here.

A link to the Fitness and Probity Standards FAQ document is here.

Central Bank Publishes Updated Requirements For Reinsurance Undertakings

In November, the Central Bank published updated versions of the (1) Requirements for Non-Life Reinsurance Undertakings (2) Requirements for Life Reinsurance Undertakings and (3) Requirements for Composite Reinsurance Undertakings (the Requirements). The updates replace the previous requirements which were published in 2012. The Requirements note the changes to the minimum guarantee fund for all reinsurers (except captives) effective from 31 December 2014. The Requirements set out further detail regarding the submission of annual forms, in particular on ceding commission and other operating expenses on the P&L form. The Central Bank also highlights its view that providing loans for activities not directly related to the reinsurance business of a reinsurer is not consistent with a firm's authorisation. Also, it is noted that the format of the compliance statement is now housed in the 'Guideline for Life Insurance Undertakings, Non-Life Insurance Undertakings and Reinsurance Undertakings - Compliance Statements'.

A Link to the Requirements is here.

Central Bank...

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