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  • Specific Requirements[versions up to January 2011]

    • HC-1.1.4 [versions up to January 2011]

      The Board must establish and maintain a statement of its responsibilities, defining its functions and tasks and those delegated to Board sub-committees and senior management. This statement must be clearly communicated to Board members and senior management.

    • HC-1.1.5 [versions up to January 2011]

      The Board must approve and review at least annually the licensee's:

      (a) Strategic plans;
      (b) Management structure and responsibilities; and
      (c) Systems and controls framework (including its policies and procedures).
      Amended: January 2007

    • HC-1.1.6 [versions up to January 2011]

      The Board must also regularly review:

      (a) The licensee's implementation of its strategy and operational performance;
      (b) The performance of its executive management; and
      (c) The level of risk.
      Amended: January 2007

    • HC-1.1.7 [versions up to January 2011]

      The Board must set out clearly and review on a regular basis who has authority to enter the licensee into contractual obligations. The Board should set a materiality threshold so that contractual obligations above this set threshold are regularly reported to the Board. In setting the materiality threshold, the Board will consider the financial impact the contractual obligations may have in relation to its capital.

    • HC-1.1.8 [versions up to January 2011]

      The Board must have effective policies and processes in place to address its members' potential conflicts of interest, including matters such as:

      (a) Related party transactions;
      (b) The misuse of assets belonging to the licensee; and
      (c) The use of privileged information for personal advantage ('insider trading').
      Amended: January 2007

    • HC-1.1.9 [versions up to January 2011]

      Board members must declare in writing all of their interests in other enterprises or activities (whether as a shareholder, manager, or other form of participation) to the Board (or the Nominations or Audit Committee) on an annual basis. Any Board member should also absent himself from any discussion or decision-making that involves a subject where he is incapable of providing objective advice, or which involves a subject, transaction or proposed transaction where there is a potential conflict of interest.

    • HC-1.1.10 [versions up to January 2011]

      The Board and its members must act with honesty, integrity, due skill and care, and in the best interests of the licensee, its shareholders and policyholders.

    • HC-1.1.11 [versions up to January 2011]

      In assessing compliance with Paragraph HC-1.1.10, the CBB will take into account all actions of the Board and its members. The interest of the licensee includes the licensee's continued compliance with all relevant Rules and Regulations, and the interests of employees, customers and other stakeholders. The interest of shareholders includes the current and future value of the licensee, its status as a going concern, transparency and disclosure of information to the market. The interest of policyholders includes ensuring that the licensee fulfils its obligations under its policies and treats all policyholders fairly and pays equal regard to the interests of all policyholders and groups of policyholders.

      Amended: January 2007
      Amended: October 2007