The Superintendence of Private Insurance (SUSEP) opened Public Consultation No. 03/2021, putting forward a draft Circular that amends SUSEP Circular No. 599/2020 and introduces new provisions on the subject matter.
As a general rule, the proposal aims at expanding the requirements to be met and the list of documents to be delivered by entities intending to apply for accreditation as a registering entity within the National System of Private Insurance.
An innovation brought by the proposed Circular is the need for documentary evidence, by several means, of the economic and financial capacity of the registering entity, as well as observance of the compliance and governance rules that ensure the reputation of the entity itself and its managers are not compromised. In addition, the Circular requires evidence of an efficient mechanism to prevent conflict of interests if the entity already renders services to regulated entities of the insurance market.
The Circular also determines that the registering entity must declare that it is in accordance with the legislation and regulations on security and confidentiality of data and information.
Regarding the minimum technical qualification for accreditation, the Circular stipulates that the registering entity (or the economic group to which it belongs) must have a minimum of three years’ experience in Financial Market Infrastructure (FMI) activities or services related to the FMI, subject to SUSEP’s technical analysis, or in providing services related to information technology to insurance companies, open pension fund entities, capitalization companies, reinsurers, or other financial and capital markets entities.
In addition, the Circular allows the registering entity to have its homologation request accepted, with provisos, which must be met within ninety days from the publication date of approval and through documentary evidence, under penalty of cancellation of such homologation.
Finally, we highlight that the proposed Circular provides for the revocation of accreditation if the registering entity does not submit a request for approval of the registration system with the appropriate documents, within ninety days from the date of approval of its accreditation.
The full draft Circular can be accessed at this link. Interested parties may send comments or suggestions by electronic message addressed to email@example.com, in accordance with the specific standardized table duly completed, by February 24, 2020.
Demarest’s Insurance and Reinsurance team is closely monitoring the development of this public consultation through to the publication of the final version, and makes itself entirely available to provide any clarifications on the subject.