Solvency II Art.41: Art. 41(1), (2); DR Art. 258 Maintain an effective, proportionate system of governance

Undertakings must have an effective system of governance providing sound and prudent management: a transparent organisational structure with clear allocation and appropriate segregation of responsibilities, effective transmission of information, and compliance with Articles 42 to 49, subject to regular internal review and proportionate to the nature, scale and complexity of operations. The Delegated Regulation adds: effective decision making and reporting lines, a board that collectively and individually has the needed qualifications, competent personnel aware of their procedures, task assignment that does not impair objectivity, complete and timely information systems, orderly records, security and confidentiality of information, at least two persons who effectively run the undertaking, processes to identify and manage conflicts of interest, and regular evaluation of the governance system with remediation of deficiencies.