The European Insurance and Occupational Pensions Authority (EIOPA) published today a Consultation Paper on the proposal for the Guidelines on facilitating an effective dialogue between insurance supervisors and auditors that carry out statutory audit of (re)insurance companies. These draft Guidelines relate to the provisions on fostering an effective dialogue as set out in the Audit Regulation (Regulation (EU) No 537/2014).
The Guidelines objective is to develop an effective, consistent and proportionate supervisory approach towards a regular dialogue between supervisors and auditors. Therefore, the draft Guidelines present relevant principles such as the nature of the information to be exchanged, the form, frequency and timing as well as the representatives involved in such dialogues between supervisors and auditors.
EIOPA, in close cooperation with the European Banking Authority (EBA), assessed the current supervisory practices linked with the interaction with statutory auditors. It noted that insurance supervisors have regular and ad hoc interactions with statutory auditors, which are currently often not based on clear rules.
The consultation will end on 28 April 2016. Comments should be submitted via email to CPemail@example.com. Please note that comments submitted after the deadline or not submitted on the provided template cannot be processed.
The consultation paper and the template for comments can be viewed here.
Articles 68 and 72 of the Solvency II Directive (Directive 2009/138/EC ) set out legal requirements on statutory auditors to report promptly any facts which are likely to have a serious effect on the financial situation or administrative organisation of a (re)insurance company. However, in addition to this duty, supervisory and auditor's tasks can be supported by an effective dialogue between supervisors and statutory auditors.
EIOPA Guidelines are non-binding instruments addressed to National Competent Authorities (NCAs). Their aim is to ensure common, uniform and consistent application of Union law as well as to establish consistent, efficient and effective supervisory practices drafted by EIOPA in accordance with Article 16 of the Regulation establishing EIOPA.