Regulatory Alerts2022-01-01 | JPRF-S-2022-034JPRF-S-2022-034 — Harmonization of External Auditor Chapter Provisions on Services Provided to the Same Audited Entity in the Insurance Sector
The Financial Policy and Regulation Board (JPRF) issued Resolution No. JPRF-S-2022-034 to harmonize the regulatory framework for external auditors in the insurance sector with that of the financial sector. The resolution substitutes Article 11 of the Private Insurance System regulations to mandate that the general shareholders' meeting select external auditors from a shortlist provided by management, limiting engagement periods to three consecutive years. It further establishes strict independence requirements, prohibiting auditors from providing non-audit services to the audited entity and banning them from offering any services to that entity for one year after their contract terminates.
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