3
General Governance for Large Non-Directive Insurers
3.1
This Chapter only applies to a large non-directive insurer.
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3.2
(1) A firm must have in place an effective system of governance which provides for sound and prudent management of its business.
(2) The system of governance must include at least:
(a) an adequate transparent organisational structure with a clear allocation and appropriate segregation of responsibilities; and
(b) an effective system for ensuring the transmission of information.
(3) [Not currently used]
(4) The system of governance must be subject to regular internal review.
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3.3
A firm’s system of governance must be proportionate to the nature, scale and complexity of its operations.
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3.4
A firm must:
(1) have written policies in relation to at least risk management, internal control, internal audit and, where relevant, outsourcing;
(2) make those policies subject to prior approval of its governing body;
(3) ensure those policies are implemented;
(4) review those policies at least annually; and
(5) adapt those policies in view of any significant change in the system or area concerned.
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3.5
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