Regulatory Alerts2022-05-17
Final fit and proper standard for licensed insurers
The Reserve Bank of New Zealand issued this standard under the Insurance (Prudential Supervision) Act 2010 to mandate that all licensed insurers maintain a continuous fit and proper policy for directors and relevant officers. The document specifies nine critical factors for assessing fitness and propriety, including professional qualifications, history of insolvency involvement, findings of serious wrongdoing, bankruptcy status, disciplinary actions, director disqualifications, regulatory compliance, conflicts of interest, and criminal convictions. These assessment criteria apply globally, requiring insurers to evaluate conduct and events occurring both within and outside of New Zealand when determining the suitability of individuals for defined positions.