Article 42 | Solvency II Directive | Directive 2009/138/EC

Article 42 - Directive 2009/138/EC (Solvency II Directive)

Attention! This article was amended after the current consolidated version was issued. The amendments apply since 28/01/2025. Please consult Directive 2025/2 to review the changes made to the article.

Article 42

Fit and proper requirements for persons who effectively run the undertaking or have other key functions

1. Insurance and reinsurance undertakings shall ensure that all persons who effectively run the undertaking or have other key functions at all times fulfil the following requirements:

(a)	their professional qualifications, knowledge and experience are adequate to enable sound and prudent management (fit); and

(b)	they are of good repute and integrity (proper).

2. Insurance and reinsurance undertakings shall notify the supervisory authority of any changes to the identity of the persons who effectively run the undertaking or are responsible for other key functions, along with all information needed to assess whether any new persons appointed to manage the undertaking are fit and proper.

3. Insurance and reinsurance undertakings shall notify their supervisory authority if any of the persons referred to in paragraphs 1 and 2 have been replaced because they no longer fulfil the requirements referred to in paragraph 1.

TITLE I - GENERAL RULES ON THE TAKING-UP AND PURSUIT OF DIRECT INSURANCE AND REINSURANCE ACTIVITIES (Article 1-177)

CHAPTER I - Subject matter, scope and definitions (Article 1-13)

CHAPTER II - Taking-up of business (Article 14-26)

CHAPTER III - Supervisory authorities and general rules (Article 27-39)

CHAPTER IV - Conditions governing business (Article 40-72)

Section 1 - Responsibility of the administrative, management or supervisory body (Article 40)

Section 2 - System of governance (Article 41-50)Article 41 - General governance requirements RTSDAQ&AGL Article 42 - Fit and proper requirements for persons who effectively run the undertaking or have other key functions GL Article 43 - Proof of good repute GL Article 44 - Risk management ITSRTSDAQ&AGL Article 45 - Own risk and solvency assessment RTSDAQ&AGL Article 46 - Internal control DAGL Article 47 - Internal audit DAGL Article 48 - Actuarial function DAGL Article 49 - Outsourcing DAQ&AGL Article 50 - Implementing measures DA

Section 3 - Public disclosure (Article 51-56)

Section 4 - Qualifying holdings (Article 57-63)

Section 5 - Professional secrecy, exchange of information and promotion of supervisory convergence (Article 64-71)

Section 6 - Duties of auditors (Article 72)

CHAPTER V - Pursuit of life and non-life insurance activity (Article 73-74)

CHAPTER VI - Rules relating to the valuation of assets and liabilities, technical provisions, own funds, Solvency Capital Requirement, Minimum Capital Requirement and investment rules (Article 75-135)

CHAPTER VII - Insurance and reinsurance undertakings in difficulty or in an irregular situation (Article 136-144)

CHAPTER VIII - Right of establishment and freedom to provide services (Article 145-161)

CHAPTER IX - Branches established within the community and belonging to insurance or reinsurance undertakings with head offices situated outside the community (Article 162-175)

CHAPTER X - Subsidiaries of insurance and reinsurance undertakings governed by the laws of a third country and acquisitions of holdings by such undertakings (Article 176-177)

TITLE II - SPECIFIC PROVISIONS FOR INSURANCE AND REINSURANCE (Article 178-211)

TITLE III - SUPERVISION OF INSURANCE AND REINSURANCE UNDERTAKINGS IN A GROUP (Article 212-266)

TITLE IV - REORGANISATION AND WINDING-UP OF INSURANCE UNDERTAKINGS (Article 267-296)

TITLE V - OTHER PROVISIONS (Article 297-304)

TITLE VI - TRANSITIONAL AND FINAL PROVISIONS (Article 305-312)

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Level 2 legal acts

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Article 42 - Directive 2009/138/EC (Solvency II Directive)

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