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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society, as modified by 12; and
  3. (3) in accordance with Insurance General Application 3, managing agents, as modified by 12.

4.1

01/01/2016

  1. (1) A firm must have in place an effective internal control system.
  2. (2) That system must include administrative and accounting procedures, an internal control framework, appropriate reporting arrangements at all levels of the firm and a compliance function.

Additional Notes


[Note: Art. 46(1) of the Solvency II Directive]

4.2

01/01/2016

The compliance function referred to in 4.1(2) must include:

  1. (1) advising the governing body on compliance with the rules and other laws, regulations and administrative provisions adopted in accordance with the Solvency II Directive; and
  2. (2) an assessment of the possible impact of any changes in the legal environment on the operations of the firm concerned and the identification and assessment of compliance risk.

Additional Notes


[Note: Art. 46(2) of the Solvency II Directive]

4.3

01/01/2016

A firm must have internal processes and procedures in place to ensure the appropriateness, completeness and accuracy of the data used in the calculation of its technical provisions.

Additional Notes


[Note: Art. 82 of the Solvency II Directive]

4.4

01/01/2016

A firm must have processes and procedures in place to ensure that the best estimate and the assumptions underlying the calculation of the best estimate are regularly compared against experience.

Additional Notes


[Note: Art. 83 of the Solvency II Directive]