Audit Committee For Insurance And Reinsurance Undertakings

The MFSA has just published a consultation document in relation to new proposed Insurance Rules that will implement audit committee requirements. This is a result of the new Regulation (EU) No. 537/2014 and changes to EU Directives on statutory audits, in particular changes to Directive 2014/56/EU which removed the previous discretion to exempt non-listed public interest entities from the requirement to have an audit committee. Insurance and reinsurance undertakings fall within the definition of "public interest entities" which are now all required to have an audit committee.

The proposed new Insurance Rules require the establishment of an audit committee which fulfils the following requirements: