Risk Management Committee
18.—(1)  Subject to paragraph (4) and regulations 14(3) and 20, a Tier 1 insurer shall have a Risk Management Committee comprising —
(a)at least 3 members of the Board of the Tier 1 insurer; and
(b)at least a majority of directors (including the chairman of the Risk Management Committee) who are non-executive directors.
(2)  The Risk Management Committee shall, in addition to such other responsibilities as may be determined by the Board, be responsible for overseeing —
(a)the establishment and the operation of an independent risk management system for managing risks on an enterprise‑wide basis; and
(b)the adequacy of the risk management function of the Tier 1 insurer, including ensuring that it is sufficiently resourced to monitor risk by the various risk categories and that it has appropriate independent reporting lines.
(3)  The Risk Management Committee shall maintain records of all its meetings.
(4)  If a member of the Risk Management Committee resigns, ceases to be a director or for any other reason ceases to be a member of the Risk Management Committee —
(a)the Tier 1 insurer shall notify the Authority of the event within 14 days after the occurrence of the event; and
(b)if this results in a breach of any requirement under paragraph (1), the Board shall, within 3 months after that event, appoint such number of new members as may be required to rectify the composition of the Risk Management Committee in accordance with that requirement.
(5)  Any Tier 1 insurer which contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
(6)  Any Tier 1 insurer which contravenes paragraph (4)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.