EIOPA calls for improvements to the assessment of the propriety of board members and qualifying shareholders of insurers
On 25 January 2019 the European Insurance and Occupational Pensions Authority (EIOPA) published the findings of its peer review examining how national competent authorities (NCAs) assess the propriety of administrative, management or supervisory body (AMSB) members and qualifying shareholders.
EIOPA reviewed national regulatory frameworks and supervisory practices followed by NCAs to assess the propriety of AMSB members and qualifying shareholders at solo and group level, both at the moment of authorisation and on an ongoing basis. Furthermore, EIOPA assessed the effectiveness of cross-border cooperation.
A key requirement of Solvency II is for insurers to be owned and run by persons of integrity. The primary responsibility to ensure the fitness and propriety of AMSB members at all times rests with insurers, with NCAs carrying out their assessment following the assessment by insurers. Similarly, any acquisition of or changes to qualifying shareholders are subject to review and approval by NCAs.
The report presents the overall findings of the peer review, including identified best practices, case studies and recommended actions.
The EIOPA report is available on the watchdog’s website by link.