Late last week, the Hong Kong Insurance Authority (IA) published a circular setting out its key findings from anti-money laundering and counter-financing of terrorism (AML/CFT) onsite inspections of authorised insurers carrying on long term business.
The IA conducted visits of more than 20 insurers to review their AML/CFT policies, procedures and controls and their compliance with the relevant legislative and regulatory requirements. Continue reading
The governance landscape for insurers continues to develop following the introduction of the Senior Insurance Managers Regime last year and PRA Supervisory Statement SS5/16 on Board Responsibilities. The Audit Directive, which applies to financial years beginning on or after 17 June 2016 (subject to transitional provisions), will affect the way in which insurers manage their audit arrangements, and in particular introduces independence requirements to most firms. The extension of the banking sector Senior Managers and Certification Regime (“SMCR”) to all authorised firms will also bring change to insurers’ compliance and governance processes. A consultation paper on the extension of the SMCR is expected in Q2 2017.
Our “at a glance” guide (which can be found here) provides a summary of recent developments in governance for insurance companies.
Earlier today, it was announced that yesterday’s trilogue discussions on the Omnibus II Directive (Omnibus II) had finished in agreement. The announcement puts to rest recent uncertainty about the future of the Solvency II Directive and sets in train a timetable bringing the new regime into force from the beginning of 2016.
Of more immediate concern, a consultation paper issued by the PRA (CP9/13) in October describes its approach to guidelines published by the European Insurance and Occupational Pensions Authority (EIOPA) that address Member State preparations for Solvency II (theGuidelines).