1. The senior management of an Insurer^G remain responsible for its regulatory compliance, including in any areas that are delegated or outsourced to other Group^G members.

2. The overall governance, high-level controls and reporting lines within the Group^G should be clear so far as they affect the Insurer^G . An Insurer^G should not, for example, be subject to material control or influence from other Group^G members that is exercised through informal or undocumented channels.

3. Reliance upon functions performed at a Group^G level (for example, Group^G risk management, capital planning, liquidity and compliance) should be subject to approval and monitoring by senior management of the Insurer^G .

4. Where an Insurer^G relies upon functions that are performed at a Group^G level the protocols for the performance of those functions should be clear.

5. Senior management should establish and maintain systems and controls to identify and monitor the effect on the Insurer^G of its relationship with other members of the Group^G and the activities of other members of its Group^G . These systems and controls should include procedures to monitor the following matters:

6. The Insurer^G should have in place procedures to insulate the Insurer^G , so far as practicable, from potentially adverse effects of Group^G activities (for example, transfer pricing or fronting) or Group^G events that may expose the Insurer^G to risk. Such procedures could include requirements for transactions with Group^G members to be at arm's length, and for maintenance of 'Chinese walls', and development of contingency plans.

7. Senior management should take reasonable steps to ensure that: