PINS S8.3 Specific obligations of group members

(1) If an insurer is a member of a group, the insurer's senior management should monitor any functions performed for the insurer at the group level.

Examples

•    group risk management
•    capital planning
•    liquidity
•    compliance.
(2) The insurer's senior management should establish and maintain procedures and controls to identify and monitor the effect on the insurer of its relationship with the other members of the group and the activities of those other members.
(3) The procedures and controls should include procedures to monitor:
(a) changes in relationships between group members;
(b) changes in the activities of group members;
(c) conflicts of interest arising within the group;
(d) events in the group, particularly those that might affect the insurer's own regulatory compliance (for example, any failure of control or compliance in another group member);
(e) the effect on it of:
(i) its relationship with the other members of the group;
(ii) its membership in the group; and
(iii) the activities of the other members of the group; and
(f) the group's compliance with:
(i) the supervision requirements applicable to it, including systems for the production of relevant data; and
(ii) group reporting requirements.
(4) The insurer should have procedures to insulate it, so far as practicable, from the adverse effects of other group activities (for example, transfer pricing or fronting) or group events that might expose the insurer to risk.

Examples

Such procedures could include:
•    a requirement for transactions within the group to be at arm's length
•    maintenance of “Chinese walls
•    development of contingency plans.
(5) The insurer's senior management should take reasonable steps to ensure that:
(a) other group members are aware of the insurer's management and reporting obligations in relation to group risk;
(b) group capital and group risk reporting requirements are complied with; and
(c) information about the group provided to the Regulatory Authority is accurate, and is provided in a timely manner.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).