Regulatory Alerts2025-03-28
GFSC Guidance Note on The Prudent Person Principle
The Gibraltar Financial Services Commission issued this guidance to define regulatory expectations for insurers regarding the Prudent Person Principle under the Financial Services (Insurance Companies) Regulations 2020. The document mandates that firms develop and maintain documented investment strategies aligned with their business models and board risk appetite, while implementing robust risk management frameworks to monitor and control investment risks. It further requires rigorous stress testing, diversification, and internal quantitative limits to ensure solvency is not threatened by risk concentrations, counterparty failures, or exposures to non-traded assets.
Share