Index
1.
Preamble
2. Definitions
3. Objectives and principles of cooperation
4. Description of the group and identity of the
competent authorities
5. Confidentiality
6. Responsibilities of the competent authorities
7. Cooperation in going concern situations
8. Cooperation in emergency situations
Appendices
APPENDIX 1 – Supervisors Contact List
1.
Preamble
A. Whereas The National Insurance Commission, Ghana, The Central Bank of Liberia,
The National Insurance Commission, Nigeria, The Sierra-Leone Insurance
Commission and The Central Bank of The Gambia are the insurance
regulators in the English speaking countries of West Africa.
B. insurance
industry is fundamental to the development of enterprises, the mobilization of
savings and investments, and the promotion of economic growth;
C. the increasing operation of cross border
network by branches and/ or offshore subsidiaries in the insurance sector adds
a new and dynamic dimension to the economies of countries;
D. international
mutual cooperation can facilitate growth, development and can facilitate
effective regulation and efficient performance of the functions with which each
insurance supervisor is entrusted within their respective jurisdictions;
E. insurance industry play a key role in the integration and harmonisation aspirations
of ECOWAS.
NOW THEREFOR, The National
Insurance Commission, Ghana, The Central Bank of Liberia, The National
Insurance Commission, Nigeria, The Sierra-Leone Insurance Commission and The Central Bank of The Gambia (hereinafter referred to
as The West Africa Insurance Supervisors Association, WAISA
or “the
Members” or individually as “Member”) have mutually agreed to enter into this Multilateral Memorandum of Understanding (MMOU) in the desire to
establish a mutually acceptable basis for cooperation and consultations and to
achieve their common objectives on the terms provided hereunder.
The acceptable basis for cooperation and
consultation shall take the form of a forum to be known and addressed as “West
Africa Insurance Supervisors Association (WAISA)
2.
Definitions
For the
purposes of this MMoU, unless the context states otherwise:
“WAISA” means West
African Insurance Supervisors Association.
“IAIS” means International
Association of Insurance Supervisors.
“the
Group” is described in paragraph 4.
“competent authority”
means a national authority that is empowered by law to supervise insurance operators.
Competent authorities of the Group are listed in paragraph 4.3.
“insurer” means
every insurance company and reinsurance company that is regulated by the
competent authority in each member state.
“supervisory
college” is a forum meeting for cooperation which gathers the competent authorities who are members of WAISA.
“Emergency situation”
means any situation
or event that could materially affect or impair the financial or operational condition of an insurance entity or substantially affect the public interest of the jurisdiction of a competent
authority and that, accordingly, should be handled
in an expedited manner.
3. Proviso and Objectives of cooperation
1.
The following proviso shall
apply to this MMoU:
(a) The MMoU may be amended, if necessary, to reflect significant changes
to the Group and changes to WAISA
membership and activities. It may also
be amended, if needed, to remain compatible with the IAIS principles and standards.
(b) The provisions of this MMoU do not create any
legally binding obligations nor does it
modify or supersede any jurisdictional law; nor does this MMoU create any
directly or indirectly enforceable rights. This MMoU does not affect any provisions under other
multilateral or bilateral agreements. This MMoU does not affect the freedom of the competent
authorities to cooperate and exchange information on an informal basis or beyond the scope of this MMoU.
(c) Cooperation
among the competent authorities with respect
to group matters
takes place mainly through
the Secretariats of the West African
Insurance Supervisors Association. This MMoU may also provide
a framework for bilateral cooperation, when necessary, and for relevant matters.
2.
The objectives of this MMoU
are to:
(a) Establish
the West African Insurance Supervisors Association, with members being - The National Insurance Commission, Ghana,
The Central Bank of Liberia, The National Insurance Commission, Nigeria, The
Sierra-Leone Insurance Commission, The
Central Bank of The Gambia.
(b) Facilitate
group-wide supervision, entailing in particular, but not limited to, an assessment of the Group’s:
(1) financial situation, (2) compliance with the rules on
solvency, (3) risk concentration and
intra-group transactions, and (4) system of
governance. The competent authorities may facilitate the gathering and analysis of available
information on risk exposure, solvency and governance of entities in the Group.
The competent authorities may assist WAISA in its functions; and may participate
in the prudential assessment of systemic risks applicable to the Group.
(c) Enhance solo supervision of
insurance entities by the competent authorities.
The solo supervision of insurance entities
is the sole responsibility of the relevant
competent authority, and each
competent authority shall take any measures
deemed necessary as regards to the supervision of their respective insurance entities. The gathering
and sharing of information, assessments and discussions by the competent authorities is intended to
facilitate the exchange of useful information among the competent
authorities, thus avoiding the duplication of tasks, in order to allow for more efficient and effective supervision of insurance entities
in the Group by each competent authority.
(d) Provide
a permanent forum for cooperation to: (1) build relationships between the members,
(2) coordinate supervisory activities and (3) engender greater cohesiveness in cooperation between competent
authorities. This MMoU is an on-
going mechanism that forms an integral part of the supervision process, contributing to the ongoing protection of policyholders’ interests
and fostering better
supervision by each of the
competent authorities in a financial crisis.
(e) Foster a better understanding
of supervisory practices and more efficient and effective supervision. There are significant differences in the
supervisory practices of the various
competent authorities, due to the specific features of each local market, which are better understood by
the relevant competent authority. As competent authorities work together, they
shall gain a greater understanding of the structure and nature of the
Group and both solo and group risks.
4.0 Description
of the Group and identity of the competent authorities
4.1
Description and structure of the Group
4.2
The Group shall be any parent
company which has its registered office in its home country and has subsidiary
insurer or subsidiary insurance brokers or branch offices in the countries listed
below; (this list is to be updated
on a regular basis)
·
Ghana
·
Liberia
·
Nigeria
·
Sierra Leone
·
The Gambia.
4.3
Identity
of the competent authorities
1.
This MMoU will take effect among
the following competent authorities:
·
National Insurance Commission, Ghana
·
The Central Bank of Liberia
·
National Insurance Commission, Nigeria
·
The Sierra-Leone Insurance Commission
·
The Central Bank of The
Gambia
2.
The Chief Executive officer of each competent
authority shall be members of the Executive
Committee of WAISA. The competent authorities must designate individuals (“contacts”)
who shall be members of a Technical
Committee of WAISA and will represent each competent authority in the
activities described in this MMoU. A list of contacts is in Appendix 1. It will be updated
on a regular basis.
5.0 Confidentiality
1
The competent authorities
acknowledge that they have made available to each other their own local rules of confidentiality.
The competent authorities acknowledge that they have been informed of these local rules, and that they have had the opportunity to check, if necessary,
that the rules of confidentiality of the competent authorities are at least equivalent to their own
confidentiality obligations.
2
The competent authorities will notify through
WAISA; the other competent authorities of any changes in the guarantees of confidentiality applying
to the information transmitted which
could affect the assessment of the equivalence of these guarantees. Should a competent authority consider that these
changes could hinder the application of paragraph 1, they will notify the
Secretariat of the WAISA. The Executive Committee of WAISA will endeavour to find an appropriate
solution and will reconsider the MMoU in this
regard.
3
Further to the
confidentiality requirements resulting from national laws and regulations or from any other legal obligations, the competent authorities confirm that any confidential information shared between them shall be used only for the lawful supervision of the Group
and its entities. The transmission of information between
competent authorities may consider the terms of any existing
bilateral and multilateral MoUs on the exchange of information.
4
The competent authorities shall endeavour to
maintain the confidentiality of all
information received to the extent permitted by their respective laws (“confidential information”). Should a competent authority receive a request
or demand for confidential information from any person or entity that is not a competent authority
i.e., a third party; such competent authority shall
immediately inform the competent authority that supplied the information of such request or demand,
and will use all reasonable
efforts to obtain the written consent of that competent authority prior to disclosure of the confidential information to the third party. Where such request
for consent is denied or has not been answered, the competent authority in
possession of the confidential information shall use all lawful means available to it to resist disclosure of the
information, and shall afford the competent authority that supplied the
confidential information the opportunity to
take whatever action it deems appropriate to preserve, protect
and maintain the confidential nature of its information. Where the
competent authority in possession of the confidential information is legally compelled
to provide the information, it shall immediately inform both the competent authority that provided the
confidential information, and the secretariat of WAISA, of the disclosure.
5
The competent authorities
will endeavour to ensure that all persons dealing with, or having access to, such confidential information are bound by the obligation of confidentiality.
6.0 Responsibilities
of the competent authorities
1.
The Executive Committee of WAISA has the role of policy making and governing,
coordinating and supervising of the Association. The Executive committee
shall determine all what relevant or essential
information is required to be gathered from competent authorities,
especially those for going concern and emergency situations, including the dissemination
of information which is of importance for the solo supervisory tasks of the competent
authorities, and authorize such information to be sent to relevant competent authorities.
2.
The competent authorities
shall endeavor to contribute to the gathering of information by supplying,
to the extent permitted by law, any
information that they consider may be
relevant to the other competent authorities so as to facilitate supervision of
the Group.
3.
The Technical Committee of the WAISA has the role of implementing the policy direction set
by the Executive Committee and reporting to the Executive committee on the activities of WAISA and proposing changes
to its functioning. The
technical committee shall keep all competent authorities informed, in
advance, of WAISA meetings and the main issues to be discussed. It shall also inform them of the findings of the meetings
and any planned
actions.
4.
The activities and findings
of WAISA shall not impact in any way on the individual
regulatory responsibilities that each competent authority has pursuant to its
own national law.
7.0 Cooperation
in going concern situations
7.1
WAISA as a Supervisory College
1.
WAISA shall use its meeting
to examine and discuss the legal structure
of specific Groups and the risks to which they are or might be exposed.
2.
The Technical Committee shall
from time to time meet to discuss the technical supervisory issues as it
concerns the Group and shall report on their work to a the Executive Committee of WAISA as is necessary.
3.
The WAISA supervisory College
meeting may invite members of the relevant banking or securities supervisors to participate in parts of the meeting
of the Supervisory College with the proviso that ad hoc arrangements on
confidentiality and professional secrecy have
been concluded and the terms
of which are satisfactory to all competent authorities prior to the meeting.
7.2
Exchange of information among
competent authorities
1.
Information shall be
centralised and disseminated through WAISA to the relevant competent
authorities. However, a competent authority may exchange information bilaterally with another competent authority if it deems it
more appropriate or necessary. In such a case, the competent
authority shall, to the extent possible, endeavour
to keep the WAISA informed of the exchange of information.
2.
The competent authorities may, to the extent permitted by law:
(a) on request, share with each other relevant
information concerning an entity in the Group
which may allow or facilitate group supervision,
(b) on their own initiative, share any information
which appears to them to be essential for the
other competent authorities.
3.
Where one competent authority
receives information from another in response to a specific request, and where WAISA receives information
provided without a specific request, the receiving competent
authorities and WAISA may
disclose that information to other competent authorities subject to the terms of this
MMoU. Prior consent to the sharing of information between
the competent authorities is not required
provided that any condition(s) placed on disclosure by
the providing competent authority are
communicated to the other competent
authorities who, subject
to their national
laws, must comply with those conditions.
4.
The information that
competent authorities may exchange between themselves includes, at the very least: (1) any granting
or withdrawal of authorizations/licences, (2) changes in the membership of the board of directors, (3) solvency concerns
or problems concerning a member in the Group (including financial problems which
could lead to the drafting
of financing schemes or the winding-up of an entity of the Group, the
declaration of emergency settlements, the freezing of assets), (4) the granting
of declarations of no objection or licenses to one of the
entities of the Group in order to allow a major
acquisition leading to a qualified participation in another insurance or
financial entity, (5) other
major acquisitions by one of the entities
in the Group, and (6) any enforcement action in relation to (one of the) entities of the Group.
5.
Where a competent authority wishes in specific
cases to verify
important information concerning an insurance entity supervised
by another competent authority, it
may ask the other competent authority to arrange for the verification. The
competent authority that receives
such a request should endeavour
to act on it, to the extent permitted by law, by:
(1) carrying out the verification itself,
(2) allowing the requesting competent
authority to carry out the
verification, or (3) allowing an external auditor or other independent expert to carry out the verification. In
any event, the requesting competent authority should, as far as possible, be kept informed
of all actions and findings
by the responding competent authority. To the extent possible, WAISA should be informed of the requests,
actions and findings, and may disclose them to other competent authorities in accordance with the terms of this MMoU.
7.3 The Task sharing, delegation, joint
activities, specialised group, joint on-site
inspections
1.
Competent authorities may
share and delegate tasks to other competent authorities,
subject to their mutual consent, and in compliance with the national laws and regulatory requirements applying
to each competent authority. Before any delegation of tasks, the planning of the competent authorities
involved should be taken into consideration.
2.
Joint activities between
competent authorities may be organised on a voluntary basis, in compliance with the local regulatory requirements applying to each involved competent authority.
3.
The Supervisory College may decide to set up working groups comprising a number of competent authorities, working on a
voluntary basis, in order to examine specific points of interest.
8.0 Cooperation
in emergency situations
8.1
Emergency situations and conflicts of interest
1.
An emergency situation may
arise or be identified in relation to either the solo supervision of an
insurance entity or the supervision of the Group, and urgent action may be required. The relevant competent authority,
i.e. the supervisor responsible for the solo supervision of the insurance entity or for group supervision, shall endeavour to take the appropriate
supervisory measures according to its regulatory requirements and national laws. However, because the situation and measures taken
may be relevant for all the competent authorities, the competent
authority taking the measures shall, to the greatest
extent possible, inform the other competent authorities beforehand or at the latest on a timely
basis. If necessary, an emergency meeting
of the Supervisory College may be arranged in order to provide any
information which may assist the relevant competent
authority. The secretariat of WAISA
may coordinate the management of the emergency
situation, encouraging the
exchange of information and ensuring cohesion in the decision-making process.
2.
The Supervisory College
acknowledges that conflicts of interest may arise between competent authorities,
especially in emergency situations.
3.
In order to avoid conflicts
of interest between competent authorities as much as possible, and to be well prepared for any action which may be required,
the Supervisory College shall analyse any emergency
situations that may arise and identify potential
conflicts of interests. Furthermore, the Supervisory
College shall endeavour to agree on adequate
emergency schemes, including cooperation and coordination in these kinds of situation.
8.2 Communication
between competent authorities in emergency situations
Whenever an emergency
situation arises in an entity of the Group that potentially jeopardises the security and stability of that entity or the Group, it is
desirable that the competent authorities inform the Secretariat of
WAISA forthwith. The Secretariat of WAISA shall ensure that the information is
shared with the other competent authorities as soon as practicable.
9.0 Cooperation
in systemic crisis situations
9.1
General aspects of cooperation in systemic
crisis situations
1.
The competent authorities are
competent to assess whether a systemic crisis situation is likely to affect the Group.
2.
The provisions laid down in chapter 8 apply also in the event of a systemic crisis would
affect the Group.
3.
Whenever necessary, and in compliance with their
national laws, regulations and requirements, competent authorities should
endeavour to cooperate closely with the other
relevant authorities (central banks and/or finance ministries, possibly within the framework
of cross-border stability groups, if they exist) involved in the crisis management
process. Notification of the involvement of any such authority is given to the competent authorities.
9.2 Exchange of Information
1.
Any competent authority that becomes
aware of a crisis situation potentially affecting the Group will use its best efforts to inform the
Secretariat of WAISA as soon as possible. This information is to
be shared with the other competent authorities as soon as possible.
2.
In addition to the on-going exchange
of information between
competent authorities, it may be appropriate to exchange, to the
extent permitted by law, the
following information in a crisis situation: affected entities;
description of the crisis; the latest information about such entities; the significance of the affected
entities; possible impact
on the Group and/or the
financial market; systemic assessment results; and measures or recovery actions already taken by the Group.
9.3 External Communications
The competent authorities
should endeavour to coordinate their external communication of crisis-related information.
10.0 Final
Provisions
1
The Supervisory College will
make its best efforts to guarantee the security of the information
transmitted by implementing secured and quick means of transmission (e.g. through a secured sharing platform).
2
Any competent authority may withdraw from its participation in this MMoU at any time by giving at least 30 days prior notice in writing to the secretariat of WAISA which shall
inform all other competent authorities without delay. The retiring competent authorities may continue
to cooperate and exchange information according
to this MMoU during the 30 days’ notice
period until its actual retirement date. Retirement by a competent authority
will not in any way affect:
-
the rights or obligations of
any competent authority with respect to confidential information previously received or
provided under this MMoU;
-
any privileges associated
with such information.
3
The competent authorities should
revise and update this MMoU when necessary to
appropriately reflect major
changes in the overall structure
of the Group and the risks
taken, changes to the laws governing any of the
competent authorities (including organization changes of supervisory
authorities or creation of new
authorities) or changes to their cooperation
procedures.
4
Any amendment to this MMoU
requires the consent of all Supervisory College members and shall be done in
writing.
5
Before
a new competent authority joins the Supervisory College, the agreement of all the competent
authorities is necessary. The
applicant must agree with the terms of the
MMoU and provide its confidentiality rules in order to comply
with paragraph 5. If all competent authorities agree, the MMoU will be amended
and signed by all members including the new competent authority.
6
This MMoU will come into
force between competent authorities from the date each member signs.
For the Authorities:
|
Authority
|
|
Signature & Date
|
|
Represented By
|
|
National Insurance Commission
Ghana
|
|
Sierra-Leone Insurance Commission
|
|
National Insurance Commission
Nigeria
|
|
Central Bank of Liberia
|
|
The Central Bank of the Gambia
|
APPENDIX 1
EXECUTIVE COMMITTEE
|
National Insurance Commission, Ghana
|
Miss
Lydia Lariba Bawa
Commissioner
of Insurance
|
|
Central Bank of Liberia
|
Dr. J.
Mills Jones
Governor
|
|
National Insurance Commission, Nigeria
|
Mr. Mohammed
Kari
Commissioner
for Insurance
|
|
Sierra-Leone Insurance Commission
|
Mr. Augustus
A. Kanu
Commissioner
of Insurance
|
|
Central Bank of The Gambia
|
Mr. Pa
Alieu Sillah
Commissioner
of Insurance
|
TECHNICAL COMMITTEE
|
National Insurance Commission, Ghana
|
Mrs.
Emma Ocran
Director,
Legal Service
|
|
Central Bank of Liberia
|
Mr.
Mathew Innis
Assistant
Director, Insurance
|
|
National Insurance Commission, Nigeria
|
Mr.
Babajide Oniwinde
Deputy
Director, Corporate Strategy
|
|
Sierra-Leone Insurance Commission
|
Dr.
Abdul K. Bangura
Director,
Finance
|
|
Central Bank of The Gambia
|
Mr. Saikou
Touray
Deputy
Director, Insurance Supervision
|
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