PROVISION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of December 22, 2014 No. 447-P

About curators of insurance companies

Based on the Law of the Russian Federation of November 27, 1992 No. 4015-1 "About the organization of insurance case in the Russian Federation" (Sheets of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, No. 2, Art. 56; Russian Federation Code, 1998, No. 1, Art. 4; 1999, No. 47, Art. 5622; 2002, No. 12, Art. 1093; No. 18, Art. 1721; 2003, No. 50, Art. 4855, Art. 4858; 2004, No. 30, Art. 3085; 2005, No. 10, Art. 760; No. 30, Art. 3101, Art. 3115; 2007, No. 22, Art. 2563; No. 46, Art. 5552; No. 49, Art. 6048; 2009, No. 44, Art. 5172; 2010, No. 17, Art. 1988; No. 31, Art. 4195; No. 49, Art. 6409; 2011, No. 30, Art. 4584; No. 49, Art. 7040; 2012, No. 53, Art. 7592; 2013, No. 26, Art. 3207; No. 30, Art. 4067; No. 52, Art. 6975; 2014, No. 23, Art. 2934, No. 30, Art. 4224; No. 45, the Art. 6154) and the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 45, of the Art. 6154) this Provision establishes procedure for appointment, obligation, the right and responsibility of employees of the territorial offices of the Bank of Russia and Department of the insurance market of the Bank of Russia exercising control and supervision of observance of the requirements of the insurance legislation of the Russian Federation appointed by curators of insurance companies (further - the curator).

Chapter 1. General provisions

1.1. The purpose of appointment of curators is ensuring implementation by the Bank of Russia of function of control and supervision of activities of insurance companies, including on the basis of the best understanding and assessment of such aspects of activities of insurance company as financial stability and solvency (condition of the capital, insurance reserves, insurance rates, reinsurance, quality of assets), corporate management (including the organization of internal control), transparency of structure of property, structure of insurance group in which the insurance company is parent organization or the participant.

1.2. The main objective of the curator is timely, complete and exact assessment of financial position of the insurance company assigned to it, including identification of shortcomings of its activities at perhaps earlier stages of their emergence, for the purpose of protection of the rights and legitimate interests of the insurers, insured persons and beneficiaries recognized by those according to the insurance legislation of the Russian Federation, the prevention and suppression of violations of requirements of the insurance legislation of the Russian Federation, and also the prevention of emergence of the situations menacing to stability of functioning of the insurance market of the Russian Federation.

1.3. The employee of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) whose professional and personal qualities provide effective solution of the task determined by Item 1.2 of this provision is appointed the curator.

1.3.1. The employee of the Bank of Russia appointed by the curator shall have the highest economic, either the highest legal, or the higher mathematical education and length of service at least two years in body of insurance supervision in the field of supervision of insurance companies or in the insurance company registered in the territory of the Russian Federation, rating agency in the field of the analysis of financial stability and solvency of insurance companies, auditing organization in audit areas of insurance companies or other higher education in case of work experience in body of insurance supervision in the field of supervision of insurance companies or insurance company, rating agency in the field of the analysis of financial stability and solvency of insurance companies, auditing organization in audit area of insurance companies at least three years.

1.3.2. The employee of the Bank of Russia appointed by the curator shall not:

have within three years preceding its appointment, employment relationships with the insurance company assumed to fixing to it and be during the specified term the board member (supervisory board) expected to fixing to it of insurance company;

be the owner (owner) of shares (shares) expected to fixing to it of insurance company, and also person, under control or considerable influence of which there is insurance company assumed to fixing to it. For the purpose of this provision control or considerable influence are determined according to the International accounting standard (IFRS) 10 "Consolidated financial statements" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of July 18, 2012 No. 106n "About enforcement and cancellation of documents of International accounting standards in the territory of the Russian Federation", registered by the Ministry of Justice of the Russian Federation on August 3, 2012 No. 25095 (The Russian newspaper of August 15, 2012), with the changes enacted in the territory of the Russian Federation by orders of the Ministry of Finance of the Russian Federation of October 31, 2012 No. 143n "About enforcement of documents of International accounting standards in the territory of the Russian Federation" the registered Ministry of Justice of the Russian Federation on December 12, 2012 No. 26099 (The Russian newspaper of December 21, 2012), of May 7, 2013 No. 50n "About enforcement of the document of International accounting standards in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on June 14, 2013 No. 28797 (The Russian newspaper of July 12, 2013) and the International accounting standard (IAS) 28 "Investments into the associated and joint businesses", the order of the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation of July 18, 2012 No. 106n "About enforcement and cancellation of documents of International accounting standards in the territory of the Russian Federation", the registered Ministry of Justice of the Russian Federation on August 3, 2012 No. 25095 (The Russian newspaper of August 15, 2012);

have the related relations (are determined according to the Family code of the Russian Federation (The Russian Federation Code, 1996, No. 1, the Art. 16) with shareholders (participants) of the insurance company assumed to fixing to it to whose share more than one percent of shares (shares) fall and (or) with persons, under control or considerable influence of which is the insurance company assumed to fixing to it;

have the related relations with board members (supervisory board), person performing functions of sole executive body, his deputy, the member of collegiate executive body, the chief accountant or the deputy chief accountant with division managers of this organization if the insurance company assumed to fixing to the curator is under control or considerable influence of specified persons;

have contractual relations with the insurance company assumed to fixing to it.

1.4. The employee of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) assumed to appointment as the curator in writing informs the head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) (person, it replacing) or his deputy who is granted the right to appoint the curator, on availability of the circumstances known to it listed in subitem 1.3.2 of Item 1.3 of this provision, and also other circumstances capable to cause conflict of interest or to otherwise interfere with proper accomplishment of the obligations assigned to it.

1.5. Appointment of the employee of Department of the insurance market of the Bank of Russia as the curator (territorial office of the Bank of Russia), fixing to it of insurance company is performed by means of the publication of the administrative act of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) considering distribution of obligations on control and supervision of observance of requirements of the insurance legislation of the Russian Federation by subjects of insurance case.

1.6. One or several insurance companies can be assigned to the curator.

1.7. The curator can supervise insurance company no more than three years in a row. The head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) has the right to make the decision on prolongation of the term of fixing to the curator of insurance company established by this provision, but no more than for one year.

1.8. If the insurance company which is parent organization of insurance group is assigned to the curator it is recommended to assign to him and other insurance companies of this group.

1.9. Proceeding from nature and scale of the operations performed by insurance company on insurance, reinsurance and joint insurance, nature and amount of the accepted risks, and also other aspects of activities of insurance company, the Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) can make the decision on forming of supervising group of employees of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) led by the curator.

Determination of members of supervising group is performed by means of the publication of the administrative act of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia).

1.10. Along with appointment of the curator the head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) the administrative act determines person who in the period of temporary absence of the curator will fulfill its duties, from among members of supervising group (in case of its forming according to Item 1.9 of this provision), or from among other curators of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia), or from among other employees of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia).

All regulations provided by this Provision concerning the curator extend to person who in the period of temporary absence of the curator fulfills its duties.

1.11. For implementation by the curator of the obligations the Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) shall (shall) undertake the following.

1.11.1. Within five working days after day of appointment of the curator to send written information on its appointment, and also the data necessary for establishment of contact with the curator, to the insurance company assigned to the curator, and also to the interested structural divisions of the Bank of Russia which list is determined by organizational and administrative documents of the Bank of Russia.

1.11.2. Provide to the curator access to available Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) of information on activities of the insurance company assigned to the curator, including the correspondence arriving from the insurance company assigned to the curator and sent to its address by divisions of the Bank of Russia.

Provision of information (on paper and (or) in electronic form) carried to information of limited access is performed according to requirements of the normative and other acts of the Bank of Russia regulating operating procedure with the documents containing information of limited access.

1.11.3. Provide participation of the curator in discussion of questions of activities of the insurance company assigned to it, and also in preparation of decisions concerning its activities.

1.12. If necessary the head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) has the right to make the decision (to petition) for participation of the curator and (or) the member (members) of supervising group in exit check of activities (further - check) the insurance company assigned to the curator as the member (members) of working group.

1.13. The department of the insurance market of the Bank of Russia in coordination with the interested structural divisions of the Bank of Russia determines order of interaction of the curator with employees of divisions of the Bank of Russia, including receipt of consultations by all questions of activities of the insurance company assigned to the curator arising in course of execution of the obligations assigned to it.

Chapter 2. Obligations of the curator

2.1. The curator shall observe requirements of the legislation of the Russian Federation, including regulations of the Bank of Russia determining ethical standards of business behavior and responsibility of bank clerks of Russia, to submit to the direct head.

2.2. The curator shall within five working days after emergence of circumstances (from the date of when circumstances became known), the listed in paragraphs three - pole of subitem 1.3.2 of Item 1.3 of this provision, to inform the head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) on these circumstances.

2.3. The curator keeps the file of the insurance company assigned to it.

The file of insurance company represents the code of information on activities of the insurance company assigned to the curator including including the following data containing in electronic databases and cases of the divisions of the Bank of Russia created according to the list of the documents which are formed in activities of the Central bank of the Russian Federation with indication of terms of their storage:

data on state registration and the obtained licenses for implementation of insurance and (or) reinsurance;

information on structure of property, including information on affiliates;

the reporting represented by insurance company to the Bank of Russia;

audit opinions;

actuarial conclusions;

information on corporate management (about structure of governing bodies, internal control system);

the internal documents (rules, procedures, provisions, orders, decisions, orders, techniques, job descriptions and other documents) received from the insurance company assigned to the curator in case of realization of functions by the Bank of Russia in the field of insurance supervision;

the conclusions (references, analytical notes and so forth) about financial position of insurance company containing data on results of the monitoring of activities of insurance company performed using financial performance (coefficients) characterizing financial position of insurance company and its resistance to internal and external factors of risk;

forecasts of tendencies of development of insurance company;

data on the chosen supervision modes, including on individual programs of supervision;

data on the applied measures.

The curator has the right to include in the file also other documents (data) received by it in course of execution of the obligations assigned to it, for example, data of mass media, information of rating agencies, other external sources.

The procedure for stay at the curator of documents (originals or their copies) is determined by the administrative act of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) by which access rights to the file of insurance company of other employees of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) shall be also determined.

Also employees of other divisions of Bank in coordination with the head of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) can have right of access to the file of insurance company.

2.4. In course of execution of the obligations the curator on permanent basis:

interacts with the insurance company assigned to it;

interacts with structural divisions of the Bank of Russia concerning implementation of supervision of the insurance company assigned to it;

analyzes the reporting, and also all available information of the Bank of Russia concerning the insurance company assigned to it, and takes part in assessment of its reliability;

estimates financial position of the insurance company assigned to it by means of implementation of monitoring of activities of the insurance company assigned to it using financial performance (coefficients) characterizing financial position of insurance company and its resistance to internal and external factors of risk;

reveals violations (shortcomings) of activities of the insurance company assigned to it at perhaps earlier stages of their emergence, and also the situations menacing to legitimate interests of her insurers, reinsurers, insured persons and beneficiaries, stability of the insurance market of the Russian Federation;

estimates perspectives of activities of the insurance company assigned to it;

prepares according to administrative acts of Department of the insurance market of the Bank of Russia (territorial office of the Bank of Russia) of the offer on the supervision mode of the insurance company assigned to it, and also develops the draft of the program of supervision of this insurance company;

the imprisonment (reference) containing (containing) the short analysis of financial position of the insurance company assigned to it, observance by it of requirements of financial stability and solvency prepares and represents to the direct head at least once a quarter assessment of its financial position, and also the offer on the choice of the mode of supervision.

As required, but at least once a year, the curator prepares the conclusion with appendix of analytical note about financial position of the insurance company assigned to it, including about observance of requirements to financial stability and solvency (condition of the capital, insurance reserves, quality of assets) by it, corporate management (including the organization of internal control), transparency of structure of property, structure of insurance group in which the insurance company assigned to it is parent organization or the participant, and also about the essential events which took place in activities of the insurance company assigned to it for the analyzed period, the short-term and medium terms of its activities taking into account tendencies and forecasts of its development.

2.5. The curator within the established obligations exercises control of observance by the insurance company of the legislation of the Russian Federation, including regulations of the Bank of Russia assigned to it, takes part in assessment of conformity to requirements of the legislation of the Russian Federation and the regulations of the Bank of Russia, nature, scales and conditions of activities of insurance company, and also compliance of practical activities of insurance company to provisions of the specified documents which are available at its order of internal documents of the insurance company assigned to it.

2.6. The curator timely, including proceeding from the terms established by regulations of the Bank of Russia prepares and represents to the direct head offers on all questions connected with implementation of supervision of the insurance company assigned to it.

2.7. The curator prepares and represents to the direct head offers concerning carrying out scheduled and unscheduled inspections of the insurance company assigned to it with indication of including type and type of check, questions which are subject to check, the checked period.

2.8. The curator according to the procedure, established by normative and other acts of the Bank of Russia, interacts with the division of the Bank of Russia performing, the head of working group on questions of preparation, the organization, carrying out and consideration of results of check of the insurance company assigned to it, and also before date of completion of check gets acquainted with the draft of the inspection statement of the insurance company assigned to it (including with the draft of the intermediate inspection statement), other materials of check (including the current results of check), considers its results, prepares offers on results of consideration of materials of check, participates in the meetings organized by the division of the Bank of Russia performing.

2.9. The curator will organize work of the supervising group headed by him within the powers established by the administrative act of structural division of the Bank of Russia.

Chapter 3. Rights of the curator

3.1. The curator has the right to access to information resources of the Bank of Russia on the insurance company assigned to it, obtaining in divisions of the Bank of Russia of information relating to activities of the insurance company assigned to it, insurance, credit and other companies being members of insurance group which part the insurance company assigned to the curator is.

3.2. The curator has the right to get advice of employees of divisions of the Bank of Russia or territorial offices of the Bank of Russia on all questions arising in course of execution of the obligations assigned to it.

3.3. With the permission of the direct head and in coordination with management of the insurance company assigned to the curator the curator has the right:

visit the fixed insurance company for the purpose of studying of its activities. Results of visit by the curator of the insurance company assigned to it are drawn up in the form of the reference to which the materials received during visit are applied. If in case of visit of insurance company the circumstances requiring decision making in the field of supervision are established, the curator shall reflect data on these circumstances in the specified reference with statement of information on the facts of violations (shortcomings) of activities of the insurance company assigned to it and propose solutions in the field of supervision. The reference is submitted the curator to the direct head and is stored in the file of insurance company;

receive from management, employees of the insurance company assigned to it, including heads of structural divisions of insurance company, employees exercising internal control, internal audit of insurance company, the explanation, reference (in oral and written type), and also to have access to other data (other information) concerning activities of the insurance company assigned to it;

participate without voting power in meetings, meetings, meetings held in the insurance company assigned to it.

3.4. The curator has the right to offer the direct head carrying out with the insurance company of meetings, business meetings, including with participation of auditing organization assigned to it with which at insurance company the contract for carrying out annual audit of accounting (financial) records is signed; the responsible actuary who was carrying out actuarial estimation of activities of insurance company; professional association of insurers, other associations of subjects of insurance case which member is the insurance company.

3.5. The curator can discuss within the powers conferred to him by his direct head about its financial position, tendencies, development perspectives, the revealed violations of the insurance legislation and (or) the available shortcomings of its activities, ways (methods) of their elimination, and also other questions connected with execution of the legislation of the Russian Federation by it assigned to it insurance company including regulations of the Bank of Russia.

3.6. The curator has the right to prepare requests for the direction from bank name of Russia (Department of the insurance market of the Bank of Russia, territorial office of the Bank of Russia) to the insurance company assigned to it about provision of explanations (explanations) according to the reporting and its activities other information obtained according to the list of forms of the reporting and other information provided by insurance companies in the Bank of Russia, and also in executive bodies of the Russian Federation and other organizations about the provision of information and documents necessary for implementation of insurance supervision.

Chapter 4. Final provisions

4.1. This provision becomes effective after 10 days after day of its official publication in "the Bulletin of the Bank of Russia".

 

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