Guideline 65 - Responsibilities for setting internal governance requirements

1.118. The participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company should set adequate internal governance requirements across the group appropriate to the structure, business model and risks of the group and of its related entities, and should consider the appropriate structure and organization for risk management at group level, setting a clear allocation of responsibilities at all entities that are part of the group.

1.119. The participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company should not impair the responsibilities of the AMSB of each entity in the group when setting up its own system of governance.

Guideline 66 - System of governance at group level

1.120. The participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company should:

a) have in place appropriate and effective tools, procedures and lines of responsibility and accountability enabling it to oversee and steer the functioning of the risk management and internal control systems at individual level;

b) have in place reporting lines within the group and effective systems for ensuring information flows in the group bottom up and top-down;

c) document and inform all the entities that are part of the group about the tools used to identify, measure, monitor, manage and report all risks to which the group is exposed;