CORPORATE GOVERNANCE REPORT PPS Group continued the modernisation and rationalisation of business applications in 2022. Production workloads are now largely cloud-enabled, allowing resilience and agility in the delivery of platforms and services. Significant attention has also been paid to essential business applications, including the PPS Insurance platforms, to improve system stability, quality, and performance. The additional focus went into the changes and improvements that will provide a meaningful impact on the platforms to serve service delivery better and, as a result, improve the engagement quality and service experience with intermediaries and members. The year also saw success in the output of specific IT interventions that focus on business outcomes and are based on business priorities; this was further driven and instilled by the business and strategic relationship that Group IT has with business and the alignment of stakeholders on common goals and outcomes. PPS continues with deliberate strategies surrounding cyber security to continuously improve the organisation’s cyber maturity rating. Threats in the Information Security landscape remain a focal area that requires continuous monitoring and improvement based on industry best practices. Regulatory developments During the year under review, there was a significant volume of proposed legislation and amendments to existing legislation, all of which will impact the governance and reporting of governance within the PPS Group. This has placed additional responsibilities on the PPS Group Boards and management to ensure adherence to, and compliance with, the new requirements. The most important upcoming legislative items for PPS are highlighted below: 1. Market conduct The Regulation Plan for the period of 1 April 2022 to 31 March 2025 has been published by the Financial Sector Conduct Authority (FSCA). The focus areas of the Regulation Plan are (a) regulatory framework developments (b) regulatory framework developments focused on the financial markets (integrity and efficiency) and (c) regulatory framework developments focused on a broad scope of cross-cutting-sector developments and themes. A significant focus area forming part of the conduct related regulatory framework developments for the next three years is the development of a holistic, cross-sector, robust and customer-focused regulatory framework to be given effect to under the Conduct of Financial Institutions (COFI) Bill. The intention behind the development of this new framework is to position the FSCA to ensure a smooth and effective transition into the COFI Bill, without much delay. 2. Prudential standards on audit requirements for insurers The Prudential Authority (PA) has published new prudential standards on audit requirements for insurers. The prudential standards set out the information that insurers must have audited within a specified period in line with the requirement in the Insurance Act, 2017. The audited information establishes and enhances the accuracy, relevance, credibility and reliability of the insurers’ and controlling companies’ information with the PA, policyholders and other stakeholders. 3. Protection of Constitutional Democracy against Terrorism and Related Activities Bill The Bill seeks to amend the Protection of Constitutional Democracy against Terrorist and Related Activities Act, 2004, so as to: • Delete, amend and insert certain definitions for purposes of alignment with international instruments adopted upon the implementation of the Act. • Provide for offences related to terrorist training and the joining and establishment of terrorist organisations. • Provide for offences related to foreign travel and attempt to leave the Republic under certain circumstances. • Provide for offences in respect of the possession and distribution of publications with unlawful terrorism related content. • Provide for authorisation to be obtained from the Director of Public Prosecutions in respect of the investigation and prosecution of certain offences. 60 Corporate governance report
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