Effective governance which provides for sound and prudent management of the business is central to
Solvency II. Articles 42 to 49 of the Solvency II Directive provide the framework for a sound and effective system of governance. Discuss how these provisions have been transposed in Maltese insurance legislation.
Analyse, with particular reference to these provisions, whether the principle of proportionality and independence is reflected in the Maltese insurance legislation and Insurers in Malta prepare their financial statements in accordance with IFRSs as adopted by the EU. The IASB recently proposed to delay the effective date of IFRS
17 (‘Insurance Contracts’) to 1 January 2023. The road to IFRS 17 has been long and we do not yet have a
fully final standard. Discuss why there is a need for IFRS 17 and why the standard sometimes receives
criticism
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