Statement - EIOPA “Results of the peer review on propriety of administrative, management or supervisory body members and qualifying shareholders”

Today, the European Insurance and Occupational Pensions Authority (EIOPA) published a report on the “Results of the peer review on propriety of administrative, management or supervisory body members (AMSB) and qualifying shareholders (QS)”. The Peer Review examined national legislative and regulatory frameworks, supervisory processes and practices, and cross-border cooperation in relation to fitness and probity of AMSB members and QS across the 31 EEA countries.

Sylvia Cronin, Director of Insurance Supervision said: “Our approach to insurance supervision is to ensure we are aligned with European best practice. As a member of the EIOPA Board of Supervisors, EIOPA working groups and committees, we play an active and important part in shaping and influencing European standards.

“The Central Bank supports the objective of the Review to focus on the convergence of supervisory practices in fitness and probity assessments across the EEA.

“Regulated firms can expect to see a continued supervisory focus on fitness and probity (F&P). It is important that firms are fully aware of their F&P responsibilities to ensure that all individuals within firms comply with F&P Standards. The ultimate objective is to embed a culture of individual responsibility and compliance with core standards that will influence the behaviour of individuals and protect consumers.”

The Review highlighted the following:

• The primary responsibility for completing robust F&P assessments rests with insurance undertakings.
• F&P should be a continuous process rather than considering it as a one-off task.
• A robust legislative and regulatory framework, sound supervisory practices and effective cross border cooperation among supervisory authorities ensure the proper functioning of the European single market for insurance.
• F&P, when conducted properly, is an important supervisory tool.

Notes

This is the first time a peer review has been completed in relation to (fitness and) propriety assessment since the introduction of Solvency II.

Faheem Mirza, Head of Life and Health Insurance Supervision of the Insurance Directorate of the Central Bank lead the peer review with participation from supervisory representatives from a number of European national supervisory authorities and EIOPA.

Further information on the Central Bank’s Fitness & Probity regime.