Given the entry into force of Solvency II requirements in Mexico, the National Insurance and Bonds Commission continues its efforts to streamline internal and external control compliance mechanisms to which insurers are subject.
The Sole Provisions on Insurance and Surety have been modified to allow regularisation plans and auto-correct programmes to be submitted to the regulator through its website, with the aim of facilitating easier and swifter compliance with these preventive and corrective mechanisms.
Regularisation plans must be submitted by insurance and surety entities, mutual insurance companies, holding companies of financial groups and reinsurance intermediaries through electronic means where the commission detects:
- non-compliance with required solvency parameters in light of their financial situation; and
- inconsistencies in their operations.
Further, any of the abovementioned companies must submit auto-correct programmes to the regulator (through electronic means) for consideration where they recognise inconsistencies or defaults in their operations, before the regulator commences any inspections.
However, other entities subject to inspection and surveillance (eg, insurance brokerage companies) will continue to file their regularisation plans and auto-correct programmes to the commission's central intake office (and not by electronic means).
The electronic platform created by the regulator to fulfil these obligations is the Regularisation Plan and Auto-correct Programme System, which will be accessible through the regulator's website and will provide an electronic number for each programme or plan submitted.
At this juncture, however, plans and programmes must be further filed with the corresponding handwritten original signatures and designated identification folio to the commission's central intake office within five business days of the electronic submission; otherwise, the information submitted to the system will be discarded.
For further information on this topic please contact Carlos Ramos Miranda at Hogan Lovells BSTL by telephone (+52 55 5091 0000) or email (email@example.com). The Hogan Lovells website can be accessed at www.hoganlovells.com.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.