12 Oct 2022
The European Insurance and Occupational Pensions Authority (EIOPA) published today a follow-up report to the 2019 peer review on the propriety assessment of administrative, management and supervisory body (AMSB) members and qualifying shareholders across the European Economic Area. The follow-up report assesses how national competent authorities (NCAs) have implemented the actions recommended in the original peer review.
EIOPA has found that the supervision of AMSB members’ and qualifying shareholders’ propriety assessment has improved during the last two years even though the development of supervisory practices is still in progress in a number of countries.
Sixteen NCAs have fully implemented the actions recommended to them by EIOPA while one NCA has fully implemented more than half of its recommended actions. Another six NCAs have worked on implementing 50% of the prescribed actions to them. Five national competent authorities have implemented less than 50% of the recommended actions, out of which one has not worked at all on the follow-up of the peer review.
The 2019 peer review also identified best practices. Most of these have already been adopted by NCAs, leading to a more coherent and consistent application of supervisory guidance.
In accordance with the best practices laid out in the 2019 peer review, NCAs have since:
- developed regulatory frameworks ensuring the accountability of individuals and allowing the authorities to take timely action in case of supervisory breaches;
- worked on establishing supervisory assessment routines of AMSB members taking records into account that are comprehensive in their nature and scope;
- worked on legislation providing a framework that explicitly requires NCAs within the same Member State to share information with each other;
- developed a database to ensure that (fitness and) propriety information is readily available and recorded for future assessments or for information sharing with other supervisory authorities; and
- commenced work on developing a well-structured framework allowing for the appraisal or verification of the propriety of qualifying shareholders on a continuous basis.
EIOPA invites NCAs that have not yet fully implemented the recommended actions to consider the identified examples as inspiration for the development of their national supervisory practices. EIOPA will continue to closely monitor the implementation of recommended actions. EIOPA will also consider how best practices can be included in EIOPA’s supervisory handbook to foster further convergence in the application of the principle of proportionality.
Background information on peer reviews and their follow-up reports
The role of peer reviews is to assess the application of existing practices by NCAs, such as the implementation of directives, regulations, technical standards, EIOPA guidelines and recommendations, or supervisory practices. Peer reviews are also intended to stimulate dialogue within and between supervisory authorities and facilitate the sharing of best practices.
Pursuant to Article 30(6) of the EIOPA Regulation, EIOPA undertook a follow-up report two years after the publication of the peer review report. The follow-up report includes an assessment of the adequacy and effectiveness of the actions taken by NCAs that are subject to the peer review in response to the follow-up measures of the peer review report. EIOPA’s objective is to achieve consistent supervisory practices with the ultimate goal of protecting policyholders.
EIOPA conducts peer reviews in accordance with Article 30 of the EIOPA Regulation. See the current two-year peer review work plan.