OPERATIONAL LEVEL CONTROLS :

Segregation of Front office, Mid office and Back office

Every insurer is required to segregate Front office, Mid office and Back office and clearly lay down the roles and responsibilities. The Chief Investment Officer shall report to the Chief Executive Officer. No function falling under any of these three sub units can be outsourced. Further data servers for the investment management system shall be within India.

Risk Management Systems Review

The Board shall implement a Investment Risk Management Systems and Process which shall be certified by a Chartered Accountant as per the Technical guide issued by the Institute of Chartered Accountants of India. This shall be reviewed once in 2 years by the Chartered Accountant and the Report be filed with IRDA Further a quarterly internal/concurrent audit is mandated (if Assets under management crosses `1,000 crores concurrent audit by external auditor required). Qualifications and experience for Risk Management Auditors as well as Concurrent Auditors prescribed. Necessary certification shall be taken from them before appointment and filed with IRDA.