The unprecedented pace of regulatory change in the financial services industry has led to substantial investment in the compliance function, but it needs greater support at board and executive levels in order to be effective.
Both banking and insurance sectors have experienced a stream of new regulations over the past decade. Much of it stems from the global financial crisis and centres on capital stability in the shape of the Basel reforms, in banking, as described by the Bank for International Settlements; while the introduction of Solvency II for the insurance industry has led to an overhaul of governance.
The Solvency II directive, which became fully applicable to European insurers and reinsurers in January 2016, placed an obligation on insurance companies to implement an adequate and transparent governance system and to conduct their own risk and solvency
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