Article (4): Corporate Culture, Business Objectives and Strategies
C 24/2022 Effective from 29/9/2022
1.
The Board must set the strategies and policies for the Company, and for supervising Senior Management in implementing the business and risk strategy to ensure that the Company meets its goals, leaving daily function responsibilities to Senior Management. Strategies and polices must cover fair treatment of policyholders; Risk Appetite; choice of lines of insurance; introduction of new products; appointing competent persons with relevant qualifications commensurate with their roles and responsibilities; pricing underwriting; provision of reinsurance cover; investment; asset-liability management and the assessment of solvency requirements.
2.
The Board must establish, communicate and oversee the implementation of corporate culture and values by reinforcing appropriate norms for responsible and ethical behaviour. The Board must set the "tone from the top", particularly as it relates to the ethical behavior expectations of Staff, through approving supporting policies, including, but not limited to, a written code of conduct, a conflict of interest policy, a whistleblowing policy mechanism and an insider trading policy.
3.
A Company must enter into all transactions with Related Parties on an arm's length basis, monitor these transactions, and take appropriate steps to control or mitigate the risks to Related Parties in accordance with Board approved policies and procedures.
4.
The Central Bank may set, on a general or case-by-case basis, limits for exposures to Related Parties, deduct such exposures from capital when assessing capital adequacy, or require collateralisation of such exposures.
5.
The allocation of responsibilities to individual Board members to serve on one of the Board's committees must take account of whether the relevant Board member exercises the independence and objectivity required to carry out the functions of the said committee. Oversight of executive functions should be performed by the non-executive Board members.