Through Public Notice No. 15/2020, the Superintendence of Private Insurance (SUSEP) opened for public consultation, until August 19, 2020, a Resolution that aims to insert a new section in SUSEP Circular No. 517/2015, dealing with the independent auditor’s report on the financial statements of the supervised companies.
If approved, Section III, containing Articles 242-A and 242-B, will be included in Title III, Chapter III of the abovementioned Circular, establishing the guidelines for the drafting of the financial statements report by independent auditors.
Among the rules established within these new Articles, we highlight (i) the need for a detailed description of the materiality used in the work; (ii) the description of the materiality limit values; (iii) the communication of the main auditing matters; and (iv) the use, as one of its references, of the sufficiency of the supervised company’s capital in the report.
The amendment of the Circular, with the insertion of specific rules to be followed in the Independent Actuarial Audit Report, is a beneficial measure, given that it avoids the filing of administrative sanctioning proceedings that point out errors in such reports, without the occurrence of an effective breach of the corresponding regulatory rule, as has been the case in recent years.
The full draft Resolution can be accessed at this link. Interested parties may send comments or suggestions regarding the text by e-mail to firstname.lastname@example.org, in accordance with the specific standardized chart (here) completed, until August 19, 2020.
Demarest’s Insurance & Reinsurance team will be monitoring the development of this public consultation until the publication of its final text, and is available to provide any clarifications on the matter.