RegAlert2020-05-05 | NBB_2020_01Added · Updated
Insurance - Update of the overarching circular on governance
The overarching circular on governance is updated to reconcile prudential requirements with the Companies and Associations Code, prohibit the combination of director and employee statuses within the same company, and introduce standard task distribution schemes for significant insurers. New outsourcing rules require compliance and internal audit monitoring of critical functions, while remuneration expectations for identified staff receiving variable pay exceeding 50,000 euros include a 1:1 fixed-to-variable ratio and a three-year deferral of 40% of variable remuneration. IT infrastructure guidelines now explicitly emphasize cybersecurity and cloud outsourcing compliance, and recommendations on sustainable finance require the integration of sustainability risks into training, risk management, and remuneration policies. These changes are effective immediately, except for the outsourcing and remuneration provisions which apply from 1 January 2021.
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RPM (Trade Register) Brussels www.nbb. be mBanqueNqtionaleBank DE BELGIQUE VAN BELGIE Eurosystem Communication Brussels, 5 May 2020 Référence:
Contact person:
Nicolas Strypstein
Phone +32 2 221 44 74 nico)as, strypstein@nbb. be NBB 2020 017 Insurance - Update of the overarching circular on governance Scope Insurance or reinsurance companies under Belgian law, with the exception of small insurance companies under Belgian law as referred to in Articles 275 and 2761 or local insurance companies under Belgian law as referred to in Article 294 of the Law of 13 March 2016 on the légal status and supervision of insurance or reinsurance companies (hereinafter the "Solvency II Law"); Branches of third-country companies pursuing an insurance or reinsurance activity in Belgium, with the understanding that due account is taken ofthe absence ofa légal person and of certain corporate bodies and mechanisms in the Belgian branch: and Entities responsible2 for an insurance or reinsurance group under Belgian law within the meaning of Articles 339, 2° and 343 of the Solvency II Law or for a financial conglomerate under Belgian law within the meaning of Articles 340, 1 ° and 343 of the Solvency II Law. Summarv/Obiectives Through this Communication, fhe National Bank of Belgium (Bank) informs insurance and reinsurance companies ofthe update offhe overarching circular on governance NBB_2016_31. The main changes from the previous version are:
ï. indication of how to reconcile the new rules of the Companies and Associations Code with prudential governance requirements; n. simplification of the rules on the distribution of fasks between members of the management committee; Si. révision of Chapter 7 on outsourcing to reinforce the operational resilience of insurance and reinsurance companies and ta assign a spécifie monitoring responsibility to the compliance and internai audit functions:
Provisions referring in particular to Article 272 of the Solvency l) Law, which provides for conditions relating to premium income, total technical provisions, insurance activities covering liability, crédit, surety and reinsurance risk and activities abroad. And more precisely insurance or reinsurance companies under Belgian law which are participating undertakings in at least one insurance or reinsurance company from the European Economie Area or from a third country, insurance or reinsurance companies under Belgian law of which the parent company is a mixed insurance holding company or a mixed financial holding company from the European Economie Area or from a third country, and insurance holding companies or mixed financial holding companies under Belgian law that are parent companies of an insurance or reinsurance company under Belgian law, insofar as thèse are subject to the provisions of the Solvency II Law. NBB_2020_017 - 5 May 2020 Communication - Page 1/6
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Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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