S.L. 403.24 ст. 4General principles of supervision.

(1) Without prejudice to article 3 of the Act, supervision by the competent authority shall be based on a prospective and risk-based approach. It shall include the verification on a continuous basis of the proper operation of the business of insurance and of the compliance by authorised insurance undertakings and authorised reinsurance undertakings with the Act, regulations and Insurance Rules issued thereunder, and any other delegated acts and any technical standards that have been or may be issued under the Solvency II Directive.

(2) Supervision by the competent authority of authorised insurance undertakings and authorised reinsurance undertakings shall be carried out in a timely and proportionate manner and shall comprise an appropriate combination of off-site and on-site supervision.

(3) The competent authority shall apply the requirements laid down in the Act, regulations and Insurance Rules issued thereunder in a manner which is proportionate to the nature, scale and complexity of the risks inherent in the business of the authorised insurance undertaking and the authorised reinsurance undertaking concerned.