Stand:updated on 01.01.2016 | Topic Governance Governance – General requirements
All undertakings must have in place a proper and effective system of governance. In principle, undertakings are free to decide how to design their organisational and operational structure. However, the organisational structure must be transparent and proportionate to the nature, scale and complexity of the operations of the undertaking and the risks associated with them.
There are other supervisory requirements to be complied with, such as a clear allocation and appropriate segregation of responsibilities, requirements regarding the scope of the "four eyes" principle for material decisions, the establishment of four objective and independent key functions, comprehensible documentation and the development of contingency plans.
These and other requirements are specified in the following – non-exhaustive – list of legal bases and interpretative decisions.
Legal bases
- Section 23 ff.
Delegated Regulation (EU) 2015/35
- Article 258 ff.
Guidelines on System of Governance (EIOPA-BoS-14/253 EN)
- Guidelines 1 to 8, 65 and 66 (general governance requirements)
- Guidelines 9 and 10 (remuneration)
- Guidelines 11 to 16 (fit and proper)
