Zagreb Law Review, Vol. 3 No. 1, 2014.
Review article
Requirements of the European Legislator Regarding the Establishment of Key Functions in the Insurance Sector with Special Focus on the “Compliance Monitoring Function”
Mladenka Grgić
; Postgraduate student in the doctoral programme of the Faculty of Law in Zagreb
Abstract
This paper analyses the requirements of the European legislator with regard to the establishment of key functions in the insurance sector. It deals with the obligation of aligning the national laws of individual Member States with EU rules laid out in the “Pillar II” - Directive 2009/138/EC – Solvency II. The term “key function” in the insurance sector is the starting point for many regulations on supervision in insurance and reinsurance, as well as for all the personnel in companies that perform key functions as part of their business. These are the bases of the legal framework of the key functions presented in this paper, with special emphasis on the compliance monitoring function. It is particularly important to view the legal framework of these functions in terms of their inclusion in the management system of the insurance sector, especially because the EU legislator considers them important and critical key functions. The establishment of new key functions raises many questions, particularly in terms of the staff of the company, their role, the legislator’s requirement concerning the organisational structure, professional qualifications and the reliability of these persons, as well as the role of the supervisory authority, which may, pursuant to legal provisions, issue an order to discharge these persons.
Keywords
insurance law; European Union; key functions in the insurance sector; compliance monitoring function
Hrčak ID:
129513
URI
Publication date:
16.4.2014.
Visits: 2.699 *