Solvency II Art.47: Art. 47; DR Art. 271 Provide an objective, independent internal audit function

What does Art.47 require?

Undertakings must provide an effective internal audit function that evaluates the adequacy and effectiveness of internal control and other elements of governance, is objective and independent from operations, and reports findings and recommendations to the AMSB, which decides and ensures the actions. Internal auditors may not take on other functions (a proportionate exception allows other key functions where no conflict arises and separate staffing would be disproportionate). The function keeps a risk-based multi-year audit plan covering all activities and the whole governance system, reports the plan and at least annually a written report of findings to the AMSB, and verifies follow-up.