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

Time of application
16.41 The assessment and testing of fitness and propriety by supervisors or
undertakings should take place as part of <strong>the</strong> authorisation procedure
before an insurer is granted access <strong>to</strong> <strong>the</strong> insurance market and – if
<strong>the</strong> undertaking is already authorised - before individuals whose
fitness and propriety is being assessed take up <strong>the</strong>ir duties and
responsibilities. The requirements should be checked in <strong>the</strong> same way
in all cases (e.g. new authorisation, function restructuring or <strong>the</strong>
appointment of an additional manager on a function). It is <strong>the</strong>
insurer’s obligation <strong>to</strong> inform <strong>the</strong> supervisory authority prior <strong>to</strong> a
person being replaced or whenever <strong>the</strong>y have reason <strong>to</strong> believe that
<strong>the</strong> fitness or propriety of any previously assessed persons has
changed.
16.42 A supervisor or an undertaking can decide <strong>to</strong> reassess <strong>the</strong> fitness and
propriety of an individual if that individual’s conduct or actions give
cause for such a measure. If offences / indications of an offence are
detected during <strong>the</strong> ongoing supervision, compliance with <strong>the</strong> fit and
proper criteria must also be checked. This includes regular reevaluation,
including analysis of <strong>the</strong> business activity and of <strong>the</strong>
environment of <strong>the</strong> undertaking, particularly in <strong>the</strong> event of a change
in strategy.
Insurance groups
16.43 Compliance with <strong>the</strong> fit and proper criteria is required from all EU
insurance undertakings in an insurance group. The same kind of
compliance will be required from <strong>the</strong> senior management of <strong>the</strong> EU
parts of <strong>the</strong> group.
Powers of <strong>the</strong> supervisory authority
16.44 These powers are described in <strong>the</strong> answer <strong>to</strong> request No. 14 'Powers
of <strong>the</strong> Supervisory Authority', enabling all supervisors <strong>to</strong> use <strong>the</strong> same
<strong>to</strong>olkit.
Shareholder Control and Qualifying Holdings
16.45 In <strong>the</strong> context of shareholder control, CEIOPS considers it necessary
<strong>to</strong> ensure that qualified shareholders are suitable. This entails <strong>the</strong>
following common criteria concerning <strong>the</strong> sound and prudent
management referred <strong>to</strong> in Articles 8 and 15 of <strong>the</strong> Recast Life
Directive:
• <strong>the</strong> shareholder should have 'appropriate financial strength';
• <strong>the</strong> prospective shareholder should not have a negative
influence on <strong>the</strong> corporate governance or <strong>the</strong> objectives of <strong>the</strong>
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