Persons effectively running the undertaking or responsible for other key functions

Notification of the persons who effectively run the undertaking or are responsible for other key functions

General overview

Generally speaking, any person who establishes, administers or manages an insurance or reinsurance undertaking must meet the associated fit, proper and expertise and experience requirements and comply with the rules on professional incapacity.

The new Solvency II rules broaden fit and proper requirements applicable to persons who effectively run the undertaking or are responsible for other key functions. Insurance or reinsurance undertakings must notify their nominations to the ACPR.

Regulatory references

Since January 1st, 2016, for insurance or reinsurance undertakings subject to Solvency II, the provisions of Chapter IV, Title V, Book III of the Insurance Code, applicable to undertakings covered by each of the three codes, transposing Articles 41 and following of Directive 2009/138/EC, known as “Solvency II”, lay down in general terms the new governance rules for insurance undertakings. In particular:

For undertakings not subject to Solvency II, the notidication of managers are defined in the following documents : "instruction n°2017-I-10" (French) and "Nomination or renewal form for the managers" (French)

 

Notification of the person who effectively run the undertaking or are responsible for other key functions, for insurance or reinsurance undertakings subject to Solvency II

Insurance or reinsurance undertakings are required to notify the ACPR of the nomination or renewal of the persons who effectively run the undertaking or are responsible for other key functions (risk-management, compliance, internal audit and actuarial functions) within 15 days of their nomination or renewal.

Application requirements are laid down in Instruction 2015-I-03 reffered to above.

Notification of new managers for undertakings not subject to Solvency II

The relevant individuals are the chief executive officer, deputy chief executive officers, the sole chief executive officer, the members of the management board, the salaried senior executives referred to in Article L.114-19 of the Mutual Insurance Code and any individual called upon to carry out equivalent duties.

Application requirements are laid down in Instruction 2015-I-02 referred to above.

Shared procedure :

Applications should be sent by post and e-mail to the following addresses:

Secrétariat général de l’Autorité de contrôle prudentiel et de la résolution
Direction des Agréments, des Autorisations et de la Réglementation
Service des Organismes d’Assurances
61, rue Taitbout
75436 Paris Cedex 09

E-mail : 2789-dirigeants-rfc-soa-ut@acpr.banque-france.fr

Applicants may be asked for additional information or details.

 

The ACPR has two months from receipt of the completed application to object to such nomination or renewal; if no reply is given during this period, consent may be assumed.

Key points :

For undertakings subject to Solvency II, the persons mentioned below must be notified as persons who effectively run the undertaking. They must therefore comply with fit and proper requirements.

  • For insurance undertakings and mutual insurance undertakings subject to the French “Code des assurances”, the chief executive officer and all the deputy chief executive officers, or when appropriate, all the members of the management board must be notified as persons who effectively run the undertaking;
  • For mutual undertakings and unions of mutual undertakings subject to the French “Code de la mutualité”, the Chairman of the board must be notified as a person who effectively runs the undertaking, as well as the operational director (who must be notified as required by the Article L. 211-14 from the same code);
  • For provident institutions and unions of provident institutions subject to the French “Code de la sécurité sociale”, the CEO must be notified as a person who effectively runs the undertaking, as well as all the deputy chief executive officers (the nomination of at least one deputy CEO is required by the Article R. 931-3-22 from the same code).

In these three cases, more persons who effectively run the undertaking can be notified. They must comply with the same requirements. However, the notifications of the persons mentioned above are still required.

Updated on: 06/07/2018 15:09