On 25 January 2019 EIOPA published findings of its peer review, which examined how national competent authorities (NCAs) assess the propriety of administrative, management or supervisory body (AMSB) members and qualifying shareholders. The review was initiated following a number of cross-border cases indicating a lack of harmonisation with regards to the propriety assessment across the EEA. This leads to different outcomes in different countries for the same person.
EIOPA noted that a key requirement of Solvency II is for insurers to be owned and run by persons of integrity. The review uncovered that cross-border cases of propriety assessment can be time consuming and are slowed by cumbersome information sharing processes. Further, in relation to the definition of propriety of ASMB members, the report highlighted a substantial variation in terms of the consideration of on-going prosecution pending investigations for criminal and administrative offences.
The report highlighted a number of areas where particular NCAs were recommended to make improvements. The PRA was amongst those directed to make improvements in relation to the assessment of AMSB members. However, the PRA was also held up as an example of best practice in relation to measures introduced as part of SM&CR.
EIOPA has, as a result of the review, announced that it will seek to strengthen and support the processes of cross-border assessments.