ICP 2 Supervisor

The supervisor is operationally independent, accountable and transparent in the exercise of its responsibilities and powers, and has adequate resources to discharge its responsibilities.

Independence


2.1

The supervisor is operationally independent and free from undue government or industry interference that compromises that independence.

 


2.2

Legislation governing the supervisor provides the necessary legal protection from legal action against the supervisor and its staff for actions taken in good faith while discharging their duties. In addition, the supervisor’s staff is adequately protected against the costs of defending their actions.

2.2.1    

Having necessary legal protection from legal action promotes the independence of the supervisor by enabling its staff to make decisions and take action against a regulated legal entity even though such action or decision may be contested by that entity.

2.2.2    
In this context, legislation should protect the supervisor and its staff from criminal or civil liability for decisions made and actions taken in the course of discharging their supervisory responsibilities, provided that the action or decision was not taken in bad faith or illegally.

2.3

Procedures regarding the appointment and dismissal of the head of the supervisor and members of its governing body (if such a governing body exists) are transparent.

Accountability


2.4

The supervisor has effective internal governance structures, processes and procedures to preserve the integrity of its actions and decisions and to enable it to account to its stakeholders.


2.5

The supervisor applies requirements and supervisory procedures consistently and equitably.

 


2.6

There are processes to appeal against supervisory decisions which do not unduly impede the ability of the supervisor to make timely interventions in order to protect policyholders’ interests or contribute to financial stability.


2.7

The supervisor, including its staff and any third party acting on its behalf (presently or in the past), are required by legislation to protect confidential information in the possession of the supervisor.

Transparency


2.8

The supervisor is transparent to the public, supervised entities and the government about how it exercises its responsibilities.

 


2.9

The supervisor publishes its requirements, policies and supervisory procedures. The supervisor consults publicly on significant changes that it makes to requirements, policies and supervisory procedures.

Resources


2.10

The supervisor has sufficient resources, including human, technological and financial resources, to enable it to conduct effective supervision.

 


2.11
Where the supervisor outsources supervisory activities to third parties, the supervisor:
  • sets expectations for their role and work;
  • monitors their performance;
  • ensures their independence from the supervised entity or any other related party; and
  • subjects them to the same confidentiality rules and professional standards as the staff of the supervisor.