S.L. 403.24 Art. 10Verification of system of governance by undertakings.

(1) The competent authority shall have appropriate means, methods and powers for verifying the system of governance of authorised insurance undertakings and authorised reinsurance undertakings and for evaluating emerging risks identified by those undertakings which may affect their financial soundness.

(2) The competent authority shall, if the circumstances so warrant, require that the system of governance of an authorised insurance undertaking or an authorised reinsurance undertaking be improved and strengthened to ensure compliance with the requirements set out in article 18I(2) and (3) of the Act.