In advance of Solvency II implementation, the Central Bank's
Fitness and Probity Regime was reviewed to determine its
compatibility with the Solvency II regime. Changes to be made to
the Fitness and Probity Regime for all (re) insurance undertakings
include:
(i) Key Function Holders
Under Solvency II, all undertakings are required to have the four
key functions of the System of Governance (Compliance, Internal
Audit, Risk Management and Actuarial Functions) in place from 1
January 2016. Undertakings that do not currently have these
functions in place will be required to establish the function and
designate an individual to be responsible for each function and
submit an IQ ("Individual Questionnaire") to the Central
Bank for approval in advance of 1 January 2016.
(ii) Outsourcing of Key Functions
The Central Bank requires that, where key functions are outsourced,
the undertaking designates a current PCF ("Pre-Approval
Controlled Functions") holder within the undertaking with
overall responsibility for the outsourced arrangement. Undertakings
that outsource key functions will therefore be required to notify
the Central Bank of the PCF(s) with responsibility for the key
functions.
(iii) Head of the Actuarial Function
The domestic Actuarial Regime introduces the requirement for all
undertakings to appoint a Head of Actuarial Function
("HoAF"). This role incorporates responsibility for the
tasks of the actuarial function as outlined in Article 48 of the
Solvency II Directive along with added responsibilities outlined in
the Domestic Actuarial Regime.
(iv) Removal of Chief Actuary and Signing Actuary
PCF20 ("Chief Actuary") and PCF44 ("Signing
Actuary") will be removed as PCFs from the Fitness and Probity
Regime. These amendments do not affect the role or responsibilities
held by these individuals but simply remove the roles from the
pre-approval provisions of the Fitness and Probity Regime.
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