nach oben

Erschienen in:

2015 | OriginalPaper | Buchkapitel

8. Supervisory Review of Key Functions

verfasst von : Meinrad Dreher

Erschienen in: Treatises on Solvency II

Verlag: Springer Berlin Heidelberg

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Picking up from the Chap. 7 examination of the term “key functions” and of the key function holders, this chapter undertakes an examination of the supervisory review of key functions. In particular, this inquiry involves the areas of supervision of the key function holders as to fit-and-proper monitoring, the issue of remuneration of key function holders, the duties of notice and disclosure attendant on a change in key function holders, and the powers of insurance supervisory authorities in the supervision of key function holders.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Definition and Holders of Key Functions

Nächstes Kapitel ‘Senior Management’ of Insurance Undertakings

Directive 2009/138/EG of the European Parliament and of the Council of 25 Nov. 2009, OJEU L 335, p. 1, of 17 Dec. 2009.

The abbreviation DVO when used here and after in reference to the Level 2 DRA signifies the EU Commission draft known as Draft Implementing Measures Solvency II, 31 Oct. 2011.

Hereafter: Governance Guidelines.

RegE eines Zehnten Gesetzes zur Änderung des VAG [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act] of 15 Feb. 2012, BT-Drucks. [Document of the German Bundestag] 17/9342; also, BR-Drucks [Document of the German Bundesrat] 90/12 (hereafter: VAG-RegE) 90/12.

See on this point Dreher, “Begriff und Inhaber der Schlüsselfunktionen nach Solvency II und VAG 2012” [in English: Concept and Holders of Key Functions under Solvency II and the German Insurance Supervision Act 2012 (Draft)], VersR (2012), 933 (Chap. 7, above).

Any mention of insurance undertakings in this chapter includes reinsurance undertakings.

Other language versions of the Solvency II Directive hold likewise. See Dreher, VersR (2012), 933 (936 f.) (Chap. 7, above, at 7.3.1).

Concerning the irrelevance of using the term “key task” in place of “key function” in the German language version of the Solvency II Directive, see Dreher, VersR (2012), 933 at II 2 (Chap. 7, above, at 7.2.2).

However, in art. 42, para. 1 of the Solvency II Directive, these are prefixed by “persons who effectively run the undertaking”, which brings clear definition to the group that constitutes the addressees of the law. See Dreher, VersR (2012), 933 (934 f.) (Chap. 7, above, at 7.2.2).

See Dreher, VersR (2012), 933 (937 f.) (Chap. 7, above, at 7.3.2).

See Dreher, VersR (2012), 933 (938) (Chap. 7, above, at 7.3.4).

See Dreher, VersR (2012), 933 (938 f.) (Chap. 7, above, at 7.3.5).

These special rules cannot be examined in-depth in the present context.

For the somewhat flawed implementation legislation, see sec. 31, para. 3 VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act].

Regarding supervision in the case of outsourcing see art. 38 of the Solvency II Directive.

Regarding implementation, see sec. 32 of the VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act].

See also Bürkle, in: Fahr/Kaulbach/Bär/Pohlmann, VAG [in English: The German Insurance Supervision Act] (5th ed. 2012), in Solvabilität II [in English: Solvency II], ref. 97.

See also the relevant explanation at No. 3.33 ff. and the explanation at No. 1.11, sent. 3 of the Governance Guidelines.

See above, 8.2.1 and in detail below, 8.2.4.

Governance Guidelines Nos. 2.12 and 3.39 ff.

See on this point also Governance Guidelines No. 3.1.

See on this point 8.2.1, above.

For a different view see Bürkle, “Europarechtliche Vorgaben für die interne Governance im Versicherungssektor” [in English: Requirements for Internal Governance in the Insurance Sector], WM (2012), 878 (881).

See, e.g., the English language version: “sound and prudent management” and the French language version “gestion saine et prudente”.

VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act], id. n. 4 above, at Statement of Reasons for sec. 25 VAG [German Insurance Supervision Act] at 272.

See on this point Dreher, “Die Kontrolle der Geschäftsleiter von Versicherungsunternehmen” [in English: The Monitoring of Managers of Insurance Undertakings], ZVersWiss (2006), 375 (396 f., 401 f.) (Supplement, Annual Conference 2006).

On this methodical approach, see in detail Dreher, “Ausstrahlungen des Aufsichtsrechts auf das Aktienrecht” [in English: Effects of Supervisory Law on Corporation Law], ZGR (2010), 496.

See on this point Dreher/Lange, “Die Vollharmonisierung der Versicherungsaufsicht durch Solvency II” [in English: Full Harmonization of Insurance Supervision under Solvency II], VersR (2011), 825 (831 f.) (Chap. 1, above, at 1.4.2); Bürkle, “Die Zukunft der materiellen Versicherungsaufsicht in Deutschland” [in English: The Future of Substantive Insurance Supervision in Germany] VersR (2011), 1469 (1472 ff.); Bürkle/Grote, “Die aufsichtsbehördlichen Eingriffsbefugnisse nach Solvency II” [in English: Supervisory Intervention Powers under Solvency II] in: Dreher/Wandt, eds., Solvency II in der Rechtsanwendung [in English: Solvency II in Legal Application], (Karlsruhe: Verlag Versicherungswirtschaft 2009), 191 ff. and 225 ff.

See, on sec. 7 a, para. 1, sent. 3 VAG Dreher, ZVersWiss (2006), 375 (401 f.).

Dreher, ZVersWiss (2006), 375 (397 f.) with further references.

For a critical view of the alignment with the European insurance supervisory regime, see Dreher/Ballmaier, “Das aufsichtliche Überprüfungsverfahren nach Art. 36 Solvency II-Richtlinie und § 289 VAG-RegE” [in English: The Supervisory Review Process under art. 36 of the Solvency II Directive and Sec. 289 of the Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act] in: Dreher/Wandt, eds., Solvency II in der Rechtsanwendung [in English: Solvency II in Legal Application], Frankfurt Edition, Volume 26, Karlsruhe (2012) 73ff. (Chap. 2, above).

BaFin [German Federal Financial Supervisory Authority], “Merkblatt zur Kontrolle der Mitglieder von Verwaltungs- und Aufsichtsorganen gemäß KWG und VAG” [in English: Guidance Notice on Vetting Members of Administrative and Supervisory Bodies in accordance with the Banking Act and the Insurance Supervision Act] dated Feb. 22, 2010; the draft of a new version of the notice dated May 3, 2012 is currently in the consultation phase. The new notice contains no changes with respect to the matter discussed above.

See Dreher/Lange, “Die Qualifikation der Aufsichtsratsmitglieder von Versicherungsunternehmen nach VAG und Solvency II” [in English: Qualifications of Supervisory Board Members of Insurance Undertakings under VAG and Solvency II] ZVersWiss (2011), 211 (218 f.) (Chap. 6, above, at 6.3.2).

See also, on the risk management policies, art. 44, para. 2, subpara. 3 of the Solvency II Directive.

See on this point Dreher, VersR (2012), 933 (940) (Chap. 7, above, at 7.3.5.4).

See on this point, e.g., art. 263 SG11, para. 3 of the DVO.

See Dreher, VersR (2012), 933 (937 f.) (Chap. 7, above, at 7.3.2.3).

See nos. 2.14 and 3.2.4 of the Governance Guidelines.

See explanation to Guideline 14 of the Governance Guidelines at No. 3.55: “The policies and procedures describe how the undertakings will assess the persons”.

See the three examples in No. 3.56 of the Governance Guidelines.

On this point see 8.2.3.3, below.

See on this point Dreher, “Die Solvenzanforderungen in der Versicherungsaufsicht nach Solvency II und VAG-RegE” [in English: Solvency Requirements in Insurance Supervision under Solvency II and VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act]], at 4.2.3, ZVersWiss (2012), 381 (Chap. 6, above).

See on the significance of management responsibility in general and the associated limits on delegation authority from a corporate law view Dreher, “Nicht delegierbare Geschäftsleiterpflichten” [in English: Non-delegable Duties of Business Managers] in Festschrift für [Publication in Honor of] Klaus J. Hopt on his 70th Birthday on Aug. 24, (2010), 517 (518 ff.) with further references, and with respect to horizontal or vertical delegation as viewed by insurance supervisory law Dreher id., n. 43, above, at 4.1.1.

See on this point section “The Establishment and Documentation of Fitness (“Assessment”)”, above.

See above, section “The Establishment and Documentation of Fitness (“Assessment”)”.

See above, n. 33.

See Dreher/Lange, ZVersWiss (2011), 211 (218 f.) (Chap. 6, above, at 6.3.2).

See in detail on this point Dreher, ZVersWiss (2006), 357 (411 f.) with numerous references as well as, recently, “VGH München” [in English: Munich High Administrative Court], NJW (2011), 2822.

See above, at 8.2.1.

See as a parallel WpHG [German Securities Trading Act]-WpHGMaAnzV [German Securities Trading Act Employee Notice Regulations] of BaFin [German Federal Financial Supervisory Authority], BGBl. [German Federal Law Gazette] (2011), I 3116 ff. with abstract rules on the expertise and fit and proper criteria for staff members within the scope of the WpHG.

See on this point 8.2.1, above.

See above, 8.2.3.2 and 8.2.3.3.

The reference to sec. 24 is an editing error; sec. 25 is meant.

Statement by Bernardino according to a report in the Börsenzeitung [in English: Stock Market Journal] dated Feb. 11, 2012.

See above, at 8.2.1 and 8.2.3.

Recital 34, sent. 2 of the Solvency II Directive addresses only the necessary proper requirement.

No. 3.46 to 3.54 Governance Guidelines; see also the general Explanation No. 3.32, sent. 2 of the Governance Guidelines.

On this point generally see art. 249 SG1, para. 5 of the DVO.

According to para. 2, even submission of a declaration under oath is sufficient in cases where a Member State does not issue such documentation.

Computer simulation could also be considered, involving, for example, decision-making in situations where conflict of interest or legal infringement plays a role.

Of course, this “personal balance sheet” is not to be disclosed to the insurance undertaking.

See in this regard, e.g., relevant methods in cartel procurement law of restoring the reliability of a public contracting entity within the meaning of sec. 97, para. 4, of the GWB [Act Against Restraints of Competition], Dreher, “Die “Selbstreinigung” zur Rückgewinnung der kartellvergaberechtlichen Zuverlässigkeit” [in English: The ‘Self-Cleaning’ for Restoration of reliability under Cartel Procurement Law] in Festschrift für [Publication in Honor of] Horst Franke on his 60th Birthday, (2009), 31 ff.; Dreher/Hoffmann, NZBau (2012), 265.

See as well, previously, Dreher, ZVersWiss (2006), 375 (389).

See Dreher, ZVersWiss (2006), 375 (385 ff.).

VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act], id. n. 4 above, at Statement of Reasons for sec. 25 VAG [German Insurance Supervision Act] at 272.

See Dreher, ZVersWiss (2006), 375 (389 f.).

See Dreher, VersR (2012), 933 (935 f.) (Chap. 7, above, at 7.2.3).

See on this point 8.3.2.1, above.

See above, at 8.2.4.2.

See Dreher, VersR (2012), 933 (939, 941) (Chap. 7, above, at 7.3.5.3 and 7.3.5.5).

See Governance Guidelines, Guideline 10 and Explanation No. 3.28 f.

See Dreher, VersR (2012), 933 (938) (Chap. 7, above, at 7.3.3).

See, on this issue, the hierarchy of the regulatory language in the Solvency II system, above, at 8.3.2.2.

It is noteworthy that only in this place the Explanation uses the term “application” instead of “notification”.

See on this point section “The Policies”, above.

VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act], id. n. 4 above, at Statement of Reasons for sec. 44 at 278.

See 8.5.1.1, above.

See regarding the current equivalent practice of the BaFin [Federal Financial Supervisory Authority] with the retirement of a managing board member Hasse, “Informations- und Offenlegungspflichten der Versicherungsunternehmen nach Solvency II” [in English: Information and Disclosure Obligations for Insurance Undertakings under Solvency II] in: Dreher/Wandt, eds., Solvency II in der Rechtsanwendung [in English: Solvency II in Legal Application], (Karlsruhe: Verlag Versicherungswirtschaft 2009), 61 (79) with further references.

VAG-RegE [Government’s Draft of a Tenth Act Amending the German Insurance Supervision Act], id. n. 4 above, at Statement of Reasons for sec. 44 at 279.

On this point, in detail, see Dreher/Schaaf, “Die Veröffentlichungspflichten von Versicherungsunternehmen gegenüber der Allgemeinheit nach Solvency II” [in English: Insurance Undertakings’ Duty of Disclosure to the Public under Solvency II] in: Dreher/Wandt, eds., Solvency II in der Rechtsanwendung, [in English: Solvency II in Legal Application], Verlag Versicherungswirtschaft, Karlsruhe (2009), 129 ff. (Chap. 13, below).

See art. 1 no. 9 and 9 Gesetz vom [Law of] 5 Apr. 2011 BGBl (2011) I 538 and with this WpHGMaAnzV [German Securities Trading Act Employee Notice Regulations] n. 52.

See in more detail on the supervisory interventions frequently graduated in accordance with the principle of proportionality Dreher, ZVersWiss (2006), 396 (408 f.).

See currently sec. 83, para. 1, sent. 1, no. 1 of the VAG, in which the duty to provide information does not extend to employees of insurance undertakings.

See in detail Rittner/Dreher, Europäisches und deutsches Wirtschaftsrecht [in English: European and German Economic Law] (3rd ed. 2008) sec. 12, ref. 22 f.

Titel: Supervisory Review of Key Functions
verfasst von: Meinrad Dreher
Verlag: Springer Berlin Heidelberg
Buch: Treatises on Solvency II
Print ISBN: 978-3-662-46289-8

Electronic ISBN: 978-3-662-46290-4

Copyright-Jahr: 2015
DOI: https://doi.org/10.1007/978-3-662-46290-4_8