Article 308 System of governance

1.

(a)

information allowing the supervisory authorities to gain a good understanding of the system of governance within the undertaking, and to assess its appropriateness to the undertaking's business strategy and operations;

(b)

information relating to the undertaking's delegation of responsibilities, reporting lines and allocation of functions;

(c)

the remuneration entitlements of the members of the administrative, management or supervisory body, over the reporting period and a comparison of the information with that reported on the previous reporting period and the reasons for any material changes.

2.

(a)

in accordance with the requirements set out in Article 42 of Directive 2009/138/EC, a list of the persons in the undertaking that are responsible for key functions;

(b)

information on the policies and processes established by the undertaking to ensure that those persons are fit and proper.

3.

(a)

information on the undertaking's risk management strategies, objectives, processes and reporting procedures for each category of risk;

(b)

information on significant risks that the undertaking is exposed to over the life-time of its insurance and reinsurance obligations, and how these have been captured in its overall solvency needs;

(c)

information on any material risks that the undertaking has identified and that are not fully included in the calculation of the Solvency Capital Requirement as set out in Article 101(4) of Directive 2009/138/EC;

(d)

information on how the undertaking fulfils its obligation to invest all its assets in accordance with the ‘prudent person principle’ set out in Article 132 of Directive 2009/138/EC;

(e)

information on how the undertaking verifies the appropriateness of credit assessments from external credit assessments institutions including how and the extent to which credit assessments from external credit assessments institutions are used;

(f)

results of the assessments regarding the extrapolation of the risk-free rate, the matching adjustment and the volatility adjustment, as referred to in Article 44(2a) of Directive 2009/138/EC.

4.

(a)

a description of how the own risk and solvency assessment is performed, internally documented and reviewed;

(b)

a description of how the own risk and solvency assessment is integrated into the management process and into the decision-making process of the undertaking.

5.

(a)

information on the key procedures that the internal control system includes;

(b)

information on the activities performed in accordance with Article 46(2) of Directive 2009/138/EC during the reporting period;

(c)

information on the undertaking's compliance policy prepared pursuant to Article 270 of this Regulation, the process for reviewing that policy, the frequency of review and any significant changes to that policy during the reporting period.

6.

(a)

a description of internal audits performed during the reporting period, with a summary of the material findings and recommendations reported to the undertaking's administrative, management or supervisory body, and any action taken with respect to these findings and recommendations;

(b)

a description of the undertaking's internal audit policy, the process for reviewing that policy, the frequency of review and any significant changes to that policy during the reporting period;

(c)

a description of the undertaking's audit plan, including future internal audits and the rationale for these future audits:

(d)

where the persons carrying out the internal audit function assume other key functions in accordance with Article 271(2), an assessment, in qualitative and quantitative terms, of the criteria set out in points (a) and (b) of Article 271(2).

7.

8.

(a)

where the undertaking outsources any critical or important operational functions or activities, the rationale for the outsourcing and evidence that appropriate oversight and safeguards are in place;

(b)

information on the service providers to whom any critical or important operational functions or activities have been outsourced and on how the undertaking ensures that the service providers comply with Article 274(3)(a).

(c)

a list of the persons responsible for the outsourced key functions in the service provider.

9.