Answers to the European Commission on the ... - Eiopa - Europa

• Governing functions 123
o Board of Direc<strong>to</strong>rs function
o Senior Management function
• Required functions
o Apportionment and oversight function
o Actuarial function
o Compliance oversight function
o Money laundering reporting function
• Systems and controls functions
o Finance function
o Risk assessment and management function (e.g. Chief Risk
Officer)
o Internal Control function
o Internal audit function
• Significant management function (e.g. persons with responsibility
for business lines).
16.11 All of <strong>the</strong>se functions will be of importance within <strong>the</strong> new solvency
regime. Regarding <strong>the</strong> importance of, e.g. <strong>the</strong> actuarial function, not
only in <strong>the</strong> valuation of technical provisions but also in <strong>the</strong> overall risk
management process of <strong>the</strong> insurance undertakings, CEIOPS advice is
<strong>to</strong> harmonize <strong>the</strong> objectives of <strong>the</strong> actuarial function within insurance
undertakings. Annex A proposes a framework for <strong>the</strong> actuarial function.
16.12 The responsibility for verifying fulfilment of <strong>the</strong> fit and proper
requirements rests ei<strong>the</strong>r solely with <strong>the</strong> undertaking or with <strong>the</strong>
undertaking <strong>to</strong>ge<strong>the</strong>r with <strong>the</strong> supervisory authority. The supervisors’
duties should at least include assessing whe<strong>the</strong>r persons with
governing functions meet <strong>the</strong> requirements. A Member State has
expressed a view that <strong>the</strong>y should not be forced <strong>to</strong> assess <strong>the</strong> senior
management function.
16.13 To ensure that supervisors assess <strong>the</strong> level of compliance with <strong>the</strong> fit
and proper criteria with equal scrutiny, level 3 supervisory guidance
should be provided relating <strong>to</strong> <strong>the</strong> criteria <strong>to</strong> be examined.
123 The terms ‘Board of Direc<strong>to</strong>rs’ and ‘Senior Management’ are used in <strong>the</strong> answers <strong>to</strong> <strong>the</strong> Calls for Advice in a
functional ra<strong>the</strong>r than a legal interpretation, since <strong>the</strong> legal interpretation varies between Member States.
See IAIS Insurance Core Principle No. 9.
184