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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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PIN A2.15 Guidance

Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

1. The senior management of an InsurerG remain responsible for its regulatory compliance, including in any areas that are delegated or outsourced to other GroupG members.
2. The overall governance, high-level controls and reporting lines within the GroupG should be clear so far as they affect the InsurerG . An InsurerG should not, for example, be subject to material control or influence from other GroupG members that is exercised through informal or undocumented channels.
3. Reliance upon functions performed at a GroupG level (for example, GroupG risk management, capital planning, liquidity and compliance) should be subject to approval and monitoring by senior management of the InsurerG .
4. Where an InsurerG relies upon functions that are performed at a GroupG 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 InsurerG of its relationship with other members of the GroupG and the activities of other members of its GroupG . These systems and controls should include procedures to monitor the following matters:
a. changes in relationships between GroupG members;
b. changes in the activities of GroupG members;
c. conflicts of interest arising within the GroupG ; and
d. events in the GroupG , particularly those that may affect the Insurer'sG own regulatory compliance (for example, failures of control or compliance in other GroupG members).
6. The InsurerG should have in place procedures to insulate the InsurerG , so far as practicable, from potentially adverse effects of GroupG activities (for example, transfer pricing or fronting) or GroupG events that may expose the InsurerG to risk. Such procedures could include requirements for transactions with GroupG 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:
a. relevant GroupG members are aware of the Insurer'sG GroupG risk management and reporting obligations;
b. GroupG capital and GroupG risk reporting requirements are complied with; and
c. information in respect of the GroupG provided to the DFSAG is of appropriate quality.

Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]