Undertakings in a Group) Regulations, 2015 (defaultmethod)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,509, 10 ta’ Diċembru, 2015

L.N. 410 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Supervision of Insurance and Reinsurance

Undertakings in a Group) Regulations, 2015

IN exercise of the powers conferred by articles 32A and 64 of

the Insurance Business Act, the Minister of Finance, after

consultation with the Malta Financial Services Authority, has made

the following regulations:-

Preliminary

(1) The title of these regulations is the Insurance Citation, scope

Business (Supervision of Insurance and Reinsurance Undertakings in and

commencement.

a Group) Regulations, 2015.

(2) The purpose of these regulations is to implement in part

Title III of the Solvency II Directive.

(3) These regulations shall come into force on the 1st January

2016.

In these regulations, unless the context otherwise requires - Interpretation.

"the Act" means the Insurance Business Act;

"authorised insurance undertaking" means an undertaking

whose head office is in Malta, which has received authorisation

pursuant to article 7 of the Act to carry on direct general business and,

or long term business, and includes an undertaking authorised to carry

on direct and reinsurance business;

"authorised reinsurance undertaking" means an undertaking

whose head office is in Malta, which has received authorisation

pursuant to article 7 of the Act to carry on business restricted to

reinsurance;

"college of supervisors" means a permanent but flexible

structure for the cooperation, coordination and facilitation of decision

making concerning the supervision of a group;

"Directive 2002/87/EC" means Directive 2002/87/EC of the

European Parliament and of the Council of the 16 December 2002 on

the supplementary supervision of credit institutions, insurance

undertakings and investment firms in a financial conglomerate and

amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC,

92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and

2000/12/EC of the European Parliament and of the Council, as

amended from time to time;

"European insurance undertaking" means an undertaking having

its head office in a Member State or an EEA State, other than Malta,

pursuing the activity of direct insurance within the meaning of Article

2 of the Solvency II Directive, which has received authorisation in

accordance with Article 14 of the Solvency II Directive;

"European regulatory authority" means the supervisory

authority or supervisory authorities as defined in Article 13 of the

Solvency II Directive, designated by a Member State or EEA State,

other than Malta, empowered by law or regulation to supervise

insurance or reinsurance undertakings;

"European reinsurance undertaking" means an undertaking

having its head office in a Member State or an EEA State, other than

Malta, pursuing business restricted to reinsurance within the meaning

of Article 2 of the Solvency II Directive which has received

authorisation in accordance with Article 14 of the Solvency II

Directive;

"group" means a group of undertakings that

(a)

consists of a participating undertaking, its

subsidiaries and the entities in which the participating

undertaking or its subsidiaries hold a participation, as well as

undertakings linked to each other by a relationship as set out in

Article 22 of Directive 2013/34/EU of the European Parliament

and of the Council of 26 June 2013 on the annual financial

statements, consolidated financial statements and related reports

of certain types of undertakings, amending Directive 2006/43/

EC of the European Parliament and of the Council and repealing

Council Directives 78/660/EEC and 83/349/EEC; or

(b) is based on the establishment, contractually or

otherwise, of strong and sustainable financial relationships

among those undertakings, and that may include mutual or

mutual-type associations, provided that

(i) one of those undertakings effectively

exercises, through centralised coordination, a dominant

influence over the decisions, including financial decisions,

of the other undertakings that are part of the group; and

(ii)

the establishment and dissolution of such

relationships for the purposes of Title III of the Solvency II

Directive are subject to prior approval by the group

supervisor,

where the undertaking exercising the centralised coordination shall be

considered as the parent undertaking, and the other undertakings shall

be considered as subsidiaries;

"group supervisor" means the supervisory authority responsible

for group supervision in accordance with Article 247 of the Solvency

II Directive;

"insurance holding company" means a parent undertaking,

which is not a mixed financial holding company and the main

business of which is to acquire and hold participations in subsidiary

undertakings, where those subsidiary undertakings are exclusively or

mainly authorised insurance undertakings, authorised reinsurance

undertakings, European insurance undertakings, European

reinsurance undertakings, or third country insurance undertakings or

third country reinsurance undertakings, at least one of such subsidiary

undertakings being an authorised insurance undertaking, an

authorised reinsurance undertaking, a European insurance

undertaking or a European reinsurance undertaking;

"intra-group transaction" means any transaction by which an

authorised insurance undertaking, an authorised reinsurance

undertaking, a European insurance undertaking or a European

reinsurance undertaking, relies, either directly or indirectly, on other

undertakings within the same group or on any natural or legal person

linked to the undertakings within the same group by close links, for

the fulfilment of an obligation, whether or not contractual, and

whether or not for payment;

"Malta Solvency II parent" means a parent undertaking with

head office in Malta which is

(a)

an authorised insurance undertaking or an

authorised reinsurance undertaking which is a participating

undertaking in at least one authorised insurance undertaking,

authorised reinsurance undertaking, European insurance

undertaking, European reinsurance undertaking, third country

insurance undertaking or third country reinsurance undertaking;

(b)

an insurance holding company; or

(c)

a mixed financial holding company;

"method 1" means the method of calculating group solvency as

described in regulation 22;

"method 2" means the method of calculating group solvency as

described in regulation 25;

"mixed-activity insurance holding company" means a parent

undertaking, other than an authorised insurance undertaking, an

authorised reinsurance undertaking, a European insurance

undertaking, a European reinsurance undertaking, a third country

insurance undertaking, a third country reinsurance undertaking, an

insurance holding company or a mixed financial holding company,

which includes at least one authorised insurance undertaking,

authorised reinsurance undertaking, European insurance undertaking

or European reinsurance undertaking among its subsidiary

undertakings;

"mixed financial holding company" means a mixed financial

holding company as defined in Article 2(15) of Directive 2002/87/

EC;

"overseas regulatory authority" means an authority in a country

or territory outside Malta, that is not a Member State or EEA State,

which exercises any regulatory or supervisory function in relation to

financial services corresponding to a function of the competent

authority as defined in the Malta Financial Services Authority Act;

"parent undertaking" has the same meaning as assigned to it by

article 2 of the Companies Act, and for the purposes of these

regulations includes any undertaking which, in the opinion of the

competent authority, effectively exercises a dominant influence over

another undertaking;

"participating undertaking" means an undertaking which is

either a parent undertaking or other undertaking which holds a

participation or an undertaking linked with another undertaking by a

relationship as set out in Article 22 of Directive 2013/34/EU of the

European Parliament and of the Council of 26 June 2013 on the

annual financial statements, consolidated financial statements and

related reports of certain types of undertakings, amending Directive

2006/43/EC of the European Parliament and of the Council and

repealing Council Directives 78/660/EEC and 83/349/EEC;

"participation" means the ownership, direct or by way of

control, of 20% or more of the voting rights or capital of an

undertaking, and for the purposes of these regulations, includes, the

holding, directly or indirectly of voting rights or capital in an

undertaking, over which, in the opinion of the competent authority, a

significant influence is effectively exercised;

"related undertaking" means either a subsidiary or another

undertaking in which a participation is held, or an undertaking linked

with another undertaking by a relationship as set out in Articles 22(7),

(8), and (9) of Directive 2013/34/EU of the European Parliament and

of the Council of 26 June 2013 on the annual financial statements,

consolidated financial statements and related reports of certain types

of undertakings, amending Directive 2006/43/EC of the European

Parliament and of the Council and repealing Council Directives 78/

660/EEC and 83/349/EEC;

"Solvency II Directive" means Directive 2009/138/EC of the

European Parliament and of the Council of 25 November 2009 on the

taking-up and pursuit of the business of Insurance and Reinsurance

(Solvency II) (recast), as amended from time to time, and includes

any delegated acts and any technical standards that have been or may

be issued thereunder;

"subsidiary undertaking" means an undertaking within the

meaning of article 2 of the Companies Act, and for the purposes of Cap. 368.

these regulations, includes, any undertaking over which, in the

opinion of the competent authority, a parent undertaking effectively

exercises a dominant influence;

"third country" means a country which is not a Member State or

EEA State,

and other words and expressions which are also used in the Act shall,

in these regulations, have the same meaning as in the Act.

(2) The provisions of these regulations shall be applicable in

addition to the Commission Delegated Regulation (EU) 2015/35 10

October 2014 supplementing Directive 2009/138/EC of the European

Parliament and of the Council on the taking-up and pursuit of the

business of Insurance and Reinsurance (Solvency II).

PART I

Group Supervision: Cases of Application, Scope and Levels

(1) For the purpose of these regulations, supervision at Applicability of

the level of the group shall apply to every authorised insurance regulations.

undertaking and authorised reinsurance undertaking which is part of a

group.

(2) Where the competent authority is the group supervisor of a

group, or where it is one of the authorities responsible for the

supervision of an individual insurance or reinsurance undertaking in a

group and is not the group supervisor, group supervision shall apply

in the following cases, where

(a)

either

(i) an authorised insurance undertaking or an

authorised reinsurance undertaking which is a participating

undertaking in at least one other authorised insurance

undertaking, authorised reinsurance undertaking, European

insurance undertaking European reinsurance undertaking,

third country insurance undertaking or third country

reinsurance undertaking, in accordance with regulations 9

to 43; or

(ii) a European insurance undertaking or a

European reinsurance undertaking which is a participating

undertaking in at least an authorised insurance undertaking

or an authorised reinsurance undertaking, in accordance

with regulations 9 to 43; or

(b) an authorised insurance undertaking or an

authorised reinsurance undertaking, the parent undertaking of

which is an insurance holding company or a mixed financial

holding company which has its head office in Malta or in

another Member State or EEA State, in accordance with

regulations 9 to 43; or

(c)

an authorised insurance undertaking or an

authorised reinsurance undertaking, the parent undertaking of

which is an insurance holding company or a mixed financial

holding company which has its head office in a third country, or

is a third country insurance undertaking or a third country

reinsurance undertaking, in accordance with regulations 44 to

47; or

(d) an authorised insurance undertaking or an

authorised reinsurance undertaking, the parent undertaking of

which is a mixed-activity insurance holding company, in

accordance with regulation 48.

(3) For the avoidance of doubt, the provisions of the Act,

regulations or Insurance Rules issued thereunder, concerning the

supervision of an authorised insurance undertaking or an authorised

reinsurance undertaking taken individually shall continue to apply to

such an undertaking, except where it is otherwise provided under

these regulations.

(1) Where a mixed financial holding company is subject Level of

to equivalent provisions under the Solvency II Directive and under application

regard to mixed

Directive 2002/87/EC, in particular in terms of risk-based financial

holding

supervision, and where the competent authority is the group companies.

supervisor of the group, the authority may, after consulting other

European regulatory authorities concerned, apply only the relevant

provisions of Directive 2002/87/EC to that mixed financial holding

company.

(2) Where a mixed financial holding company is subject to

equivalent provisions under the Solvency II Directive and under

Directive 2013/36/EU of the European Parliament and of the Council

of 26 June 2013 on access to the activity of credit institutions and the

prudential supervision of credit institutions and investment firms, in

particular in terms of risk-based supervision, and where the

competent authority is the group supervisor of the group, the

authority may, in agreement with the consolidating supervisor in the

banking and investment services sector, apply only the provisions of

the Directive relating to the most significant sector as determined in

accordance with Article 3(2) of Directive 2002/87/EC.

(3) Where the competent authority is the group supervisor of

the group, it shall inform the European Banking Authority,

established by Regulation (EU) No 1093/2010 of the European

Parliament and of the Council of 24 November 2010, and EIOPA, of

the decisions taken under sub-regulations (1) and (2).

Where the competent authority is the group supervisor of a Levels at which

group, it may, after consultation with other European regulatory supervision

need not be

authorities concerned, decide not to carry out supervision of the risk exercised

relation to risk

concentration, intra-group transactions, or both, as referred to in concentration or

intra-group

regulation 33, only in the following cases

transactions, or

both.

(a)

in the cases referred to in regulation 3(2)(a) and (b),

where the participating insurance or reinsurance undertaking or

the insurance holding company or mixed financial holding

company which has its head office in Malta, or in another

Member State or EEA State, is either a related undertaking of,

or is itself a regulated entity or a mixed financial holding

company which is subject to supplementary supervision in

accordance with Article 5(2) of Directive 2002/87/EC, at the

level of that participating insurance or reinsurance undertaking

or that insurance holding company or mixed financial holding

company;

(b) where the ultimate parent insurance or reinsurance

undertaking or insurance holding company or mixed financial

holding company which has its head office in Malta, or in

another Member State or EEA State, as referred to in regulation

7, is a subsidiary undertaking of an undertaking which is subject

to supplementary supervision in accordance with Article 5(2) of

Directive 2002/87/EC, at the level of that ultimate parent

undertaking or company.

(1) Without prejudice to regulation 42 and in so far as

insurance holding companies or mixed financial holding companies

are concerned, the exercise of group supervision by the competent

authority in accordance with regulations 3, 4 and 5, shall not imply

that the competent authority is required to play a supervisory role in

relation to the third country insurance undertaking, third country

reinsurance undertaking, the insurance holding company, mixed

financial holding company or the mixed-activity insurance holding

company, taken individually.

(2) Where the competent authority is the group supervisor of a

group, it may decide on a case-by-case basis not to include an

undertaking in the group supervision referred to in regulations 3, 4,

and 5, where

(a)

the undertaking is situated in a third country, where

there are legal impediments to the transfer of the necessary

information, without prejudice to the provisions of regulation

21;

(b) the undertaking which should be included is of

negligible interest with respect to the objectives of group

supervision; or

(c)

the inclusion of the undertaking would be

inappropriate or misleading with respect to the objectives of the

group supervision.

(3) Where several undertakings of the same group, taken

individually, may be excluded pursuant to sub-regulation (2)(b), such

undertakings shall nevertheless be included where, collectively, they

are of non-negligible interest.

(4) Where the competent authority is the group supervisor of

the group and is of the opinion that an insurance or reinsurance

undertaking is not to be included in the group supervision, based on

sub-regulation (2)(b) or (c), it shall consult other regulatory

authorities concerned in the supervision of the group, before taking a

decision in accordance with sub-regulation (2).

(5) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

and the group supervisor has decided, in accordance with Article 214

of the Solvency II Directive, not to include that authorised insurance

undertaking or authorised reinsurance undertaking in the group

supervision, the competent authority may require the undertaking

which is at the head of the group to provide any information which

may facilitate the competent authority’s supervision of the excluded

authorised insurance undertaking or authorised reinsurance

undertaking.

Where the participating insurance or reinsurance Ultimate parent

undertaking or the insurance holding company or the mixed financial undertaking

Union level.

holding company, referred to in regulation 3(2)(a) and (b), is itself a

subsidiary undertaking of another authorised insurance undertaking,

authorised reinsurance undertaking, European insurance undertaking

or European reinsurance undertaking, or of another insurance holding

company or mixed financial holding company which has its head

office in Malta, or in another Member State or EEA State, regulation

9 to 43 shall apply only at the level of the ultimate parent insurance or

reinsurance undertaking, insurance holding company or mixed

financial holding company which has its head office in Malta, or in

another Member State or EEA State.

(1) The competent authority may subject the ultimate Ultimate parent

undertaking at

Malta Solvency II parent to group supervision, where

national level.

(a) the ultimate parent undertaking at Union level

referred to in regulation 7, has its head office in a Member State

or EEA State, other than Malta;

(b) the ultimate parent undertaking at Union level

referred to in regulation 7, has not obtained permission in

accordance with Articles 237 or 243 of the Solvency II

Directive, for the ultimate Malta Solvency II parent, which is its

subsidiary, to be subject to regulations 29 and 30; and

(c)

the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group

supervisor.

(2) The competent authority shall

(a) before taking the decision to exercise supervision in

accordance with sub-regulation (1), consult both the group

supervisor and the ultimate parent undertaking at Union level;

and

(b) where such a decision has been taken, explain its

decision to both the group supervisor and the ultimate parent

undertaking at Union level.

(3) Where the competent authority is the group supervisor of a

group and a decision has been taken to subject the ultimate parent

insurance or reinsurance undertaking, insurance holding company or

mixed financial holding company to group supervision, pursuant to

Article 216(1) of the Solvency II Directive, the competent authority

shall inform the college of supervisors in accordance with article

32B(3)(a) of the Act.

(4) (a)

Where the competent authority is one of the

authorities responsible for the supervision of an individual insurance

or reinsurance undertaking in a group and is not the group supervisor,

and takes a decision in accordance with regulation 8(1) and (2) or

concludes an agreement in accordance with regulation 8(11) to (13),

regulations 9 to 43 shall apply mutatis mutandis, subject to paragraph

(b) and to sub-regulations (1)(b), (5) to (10) of this regulation.

(b) The decision or agreement referred to in paragraph

(a) is subject to the decision which the competent authority may take,

to restrict group supervision of the ultimate Malta Solvency II parent

to one or more of the following

(i) Articles 218 to 243 of Title III, Chapter II,

Section 1 of the Solvency II Directive;

(ii) Articles 244 and 245 of Title III, Chapter II,

Section 2 of the Solvency II Directive;

(iii) Article 246 of Title III, Chapter II, Section 3

of the Solvency II Directive.

(5) Where the competent authority decides to apply Articles

218 to 243 of the Solvency II Directive to the ultimate Malta

Solvency II parent or concludes an agreement in accordance with sub-

regulations (11) to (13), the choice of method made in accordance

with Article 220 of the Solvency II Directive by the group supervisor

in respect of the ultimate parent undertaking at Union level referred to

in Article 215 of the Solvency II Directive, shall be recognised as

determinative and applied by the competent authority.

(6) Where the competent authority decides to apply Articles

218 to 243 of the Solvency II Directive to the ultimate Malta

Solvency II parent or concludes an agreement in accordance with sub-

regulations (11) to (13), the competent authority shall recognise as

determinative and apply any permission granted in accordance with

Articles 231 or 233(5) of the Solvency II Directive, to the ultimate

parent undertaking at Union level referred to in regulation 7 to

calculate the group Solvency Capital Requirement, as well as the

Solvency Capital Requirement of insurance undertakings and

reinsurance undertakings in the group, on the basis of an internal

model.

(7) In the situation referred to in sub-regulation (6), where the

competent authority considers that the risk profile of the ultimate

Malta Solvency II parent deviates significantly from the internal

model approved at Union level, and as long as that undertaking does

not properly address the concerns of the competent authority, the

competent authority may decide to impose a capital add-on to the

group Solvency Capital Requirement of that undertaking resulting

from the application of such model or, in exceptional circumstances,

where such capital add-on would not be appropriate, to require that

undertaking to calculate its group Solvency Capital Requirement on

the basis of the standard formula.

(8) The competent authority shall explain the decisions taken

in accordance with sub-regulations (6) or (7) to both the Malta

Solvency II parent and the group supervisor.

(9) Where the competent authority is the group supervisor of a

group and a decision has been taken pursuant to Article 216(4) of the

Solvency II Directive, the competent authority shall inform the

college of supervisors in accordance with article 32B(3)(a) of the Act.

(10) Where the competent authority decides to apply Articles

218 to 243 of the Solvency II Directive to the ultimate Malta

Solvency II parent that undertaking shall not be permitted to

introduce, in accordance with regulations 27 to 32, an application for

permission to subject any of its subsidiaries to Articles 238 and 239

of the Solvency II Directive.

(11) Where the competent authority makes a decision in

accordance with sub-regulation (1), the competent authority may

conclude an agreement with the European regulatory authorities in

other Member States or EEA States where another related ultimate

parent undertaking at national level, other than Malta, is present, with

a view to carrying out group supervision at the level of a subgroup

covering Malta and such other Member States or EEA States.

(12) Where the competent authority has concluded an

agreement as referred to in sub-regulation (11), group supervision

shall not be carried out at the level of any ultimate parent undertaking

referred to Article 216 of the Solvency II Directive, present in

Member States or EEA States, other than the Member States or EEA

States where the subgroup referred to in sub-regulation (11) is

located.

(13) Where an agreement is concluded in accordance with sub-

regulation (11), the competent authority shall explain the agreement

to the group supervisor and to the ultimate parent undertaking at

Union level.

(14) Where the competent authority is the group supervisor of a

group and an agreement to carry out group supervision at subgroup

level in the Member States or EEA States concerned, has been

concluded pursuant to Article 217 of the Solvency II Directive, the

competent authority shall inform the college of supervisors in

accordance with article 32B(3)(a) of the Act.

PART II

Financial Position

(1) Supervision of the group solvency shall be exercised

in accordance with sub-regulations (2) and (3), and regulations 34 to

43. (2) In the case referred to in regulation 3(2)(a)(i), a

participating insurance or reinsurance undertaking in a group, shall

ensure that eligible own funds are available in the group which are

always at least equal to the group Solvency Capital Requirement as

calculated in accordance with regulations 12 to 25.

(3) In the case referred to in regulation 3(2)(b), an authorised

insurance undertaking or an authorised reinsurance undertaking in a

group, shall ensure that eligible own funds available in the group are

always at least equal to the group Solvency Capital Requirement as

calculated in accordance with regulation 26.

(4) An undertaking referred to in sub-regulations (2) and (3),

shall have procedures in place to identify deteriorating financial

conditions within the group and shall notify the group supervisor,

without delay, when such deterioration occurs.

(5) An undertaking, as referred to in sub-regulations (2) and

(3), shall

(a) immediately inform the group supervisor, as soon as

such undertaking observes that the group Solvency Capital

Requirement is no longer complied with, or where there is the

risk of non-compliance within the following three months;

(b) within two months from the observation of non-

compliance with the group Solvency Capital Requirement,

submit a realistic recovery plan for approval by the group

supervisor;

(c)

take the necessary measures to achieve within six

months from the observation of non-compliance with the group

Solvency Capital Requirement, which period may be extended

for a further three months by the group supervisor, the re-

establishment of the level of eligible own funds covering the

group Solvency Capital Requirement or the reduction of the risk

profile to ensure compliance with the group Solvency Capital

Requirement;

(d) submit a progress report to the group supervisor

every three months, setting out the measures taken and the

progress made to re-establish the level of own funds covering

the group Solvency Capital Requirement or to reduce the risk

profile to ensure compliance with the group Solvency Capital

Requirement, in the event of exceptional adverse situations

affecting such undertaking, as declared by EIOPA, and where

appropriate in consultation with the European Systematic Risk

Board.

(6) Where the competent authority is the group supervisor of a

group, the authority

(a) shall require an authorised insurance undertaking or

an authorised reinsurance undertaking, a European insurance

undertaking or a European reinsurance undertaking, in a group,

which has informed the competent authority as soon as it was

observed that the group Solvency Capital Requirement is no

longer complied with, or where there is a risk of non-

compliance in the following three months, to take the necessary

measures to achieve, within six months from the observation of

non-compliance with the Solvency Capital Requirement, the re-

establishment of the level of eligible own funds covering the

Solvency Capital Requirement or the reduction of its risk profile

to ensure compliance with the Solvency Capital Requirement;

(b) may, if appropriate extend the period of six months

referred to in paragraph (a) by three months;

(c)

may, in the event of exceptional adverse situations

affecting any of the authorised insurance undertaking,

authorised reinsurance undertaking, European insurance

undertaking or European reinsurance undertaking, in a group,

extend the period set out in paragraph (b) by a maximum period

of seven years, taking into account all relevant factors,

including the average duration of the technical provisions;

(d) may, request EIOPA to declare the existence of

exceptional adverse situations, if any, of the authorised

insurance undertaking, authorised reinsurance undertaking,

European insurance undertaking or European reinsurance

undertaking, in a group, representing a significant share of the

market or of the affected lines of business are unlikely to meet

one of the requirements set out in paragraph (a);

(e)

shall cooperate with EIOPA

(i) to assess on a regular basis whether the

conditions referred to in sub-regulation (7) still apply;

(ii) to declare when an exceptional adverse

situation has ceased to exist;

(f)

shall require any affected undertaking to submit a

progress report setting out the measures taken and the progress

made to re-establish the level of eligible own funds covering the

group Solvency Capital Requirement or to reduce the risk

profile to ensure compliance with the group Solvency Capital

Requirement;

(g) shall withdraw the extension referred to in

paragraph (c) where that progress report shows that there was

no significant progress in achieving the re-establishment of the

level of eligible own funds covering the group Solvency Capital

Requirement or the reduction of the risk profile to ensure

compliance with the group Solvency Capital Requirement

between the date of the observation of non-compliance of the

group Solvency Capital Requirement and the date of the

submission of the progress report.

(7) For the purposes of this regulation, "exceptional adverse

situations" exist where the financial situation of an authorised

insurance undertaking, an authorised reinsurance undertaking, a

European insurance undertaking or a European reinsurance

undertaking, representing a significant share of the market or of the

affected lines of business, is seriously or adversely affected by one or

more of the following conditions

(a) a fall in financial markets which is unforeseen, sharp

and steep;

(b)

a persistent low interest rate environment;

(c)

a high-impact catastrophic event.

(1) The group solvency calculations referred to in Frequency of

regulation 9(2) and (3), shall be carried out at least annually by the calculation.

participating insurance or reinsurance undertaking referred to in

regulation 9(2), by the insurance holding company or by the mixed

financial holding company referred to in regulation 9(3).

(2) The relevant data for, and the results of, the calculations

referred to in regulation 9(2) and (3) shall be submitted to the group

supervisor

(a)

by the participating insurance or reinsurance

undertaking referred to in regulation 9(2); or

(b) by the insurance holding company or the mixed

financial holding company referred to in regulation 9(3), or by

such other undertaking in the group as may be identified by the

group supervisor, after consulting the competent authority, the

European regulatory authorities concerned and the group itself,

where the group is not headed by an authorised insurance

undertaking, an authorised reinsurance undertaking, a European

insurance undertaking or a European reinsurance undertaking.

(3) (a)

The authorised insurance undertaking and

authorised reinsurance undertaking referred to in regulation 9(2), and

the insurance holding company and mixed financial holding

company, referred to in regulation 9(3) shall monitor the group

Solvency Capital Requirement on an ongoing basis.

(b) Where the risk profile of the group deviates

significantly from the assumptions underlying the last reported group

Solvency Capital Requirement, the group Solvency Capital

Requirement shall be recalculated without delay and reported to the

group supervisor.

Where the competent authority is the group supervisor of a Supervision of

group solvency.

group, the authority

(a)

shall ensure that the calculations referred to in

Article 218(2) and (3) of the Solvency II Directive are carried

out at least annually, by the participating insurance or

reinsurance undertaking, by the insurance holding company or

by the mixed financial holding company;

(b) shall conduct supervisory reviews in accordance

with Articles 247 to 259 of the Solvency II Directive, to

determine whether insurance or reinsurance undertakings in the

group are complying with Articles 218(2) and (3) of the

Solvency II Directive;

(c)

shall inform the other European regulatory

authorities within the college of supervisors, which shall

analyse the situation of the group, as soon as a participating

undertaking in the group informs the competent authority, that it

is no longer in compliance with the Solvency Capital

Requirement, or that there is a risk of non-compliance in the

following three months;

(d) shall, where the group is not headed by an insurance

undertaking or reinsurance undertaking, consult the

undertakings in the group and the European regulatory

authorities concerned in the supervision of the group, before

identifying an undertaking other than an insurance holding

company or a mixed financial holding company to supply

relevant data for, and the results, of, the calculations referred to

in Articles 218(2) and (3) of the Solvency II Directive;

(e)

may, where there is evidence to suggest that the risk

profile of the group has altered significantly since the date on

which the group Solvency Capital Requirement was last

reported, require a recalculation of the group Solvency Capital

Requirement.

(1) The calculation of the solvency at the level of the

group of the authorised insurance undertakings and authorised

reinsurance undertakings referred to in regulation 3(2)(a), shall be

carried out

(a) in accordance with the technical principles in

regulations 13 to 26; and

(b) in accordance with method 1, unless the group

supervisor has determined under Article 220(2) of the Solvency

II Directive that method 2 or a combination of method 1 and

method 2 shall be applied.

(2) Where the competent authority is the group supervisor of a

group, the authority shall consult the group and the other European

regulatory authorities concerned in the supervision of the group,

before taking a decision in accordance with sub-regulation (1)(b) on

requiring the particular group to use method 2 or a combination of

method 1 and method 2, for the calculation of the solvency at the

level of the group, where the exclusive application of method 1 would

not be appropriate.

(3) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

the competent authority shall apply the method chosen by the group

supervisor for the ultimate parent insurance or reinsurance

undertaking, insurance holding company or mixed financial holding

company at Union level, in relation to

(a) group supervision at national level in accordance

with regulation 8(1); and

(b) supervision at sub-group level in accordance with

regulation 8(11).

(1) The calculation of the group solvency shall take into Inclusion of

account the proportional share held by the participating undertaking proportional

share.

in its related undertakings.

(2) Subject to sub-regulation (3), for the purposes of sub-

regulation (1), the proportional share shall comprise either of the

following

(a)

where method 1 is used, the percentages used for the

establishment of the consolidated accounts; or

(b) where method 2 is used, the proportion of the

subscribed capital that is held, directly or indirectly, by the

participating undertaking.

(3) Notwithstanding sub-regulation (2) and regardless of the

method used

(a)

where the related undertaking is a subsidiary

undertaking and does not have sufficient eligible own funds to

cover its Solvency Capital Requirement

(i) the total solvency deficit of the subsidiary

undertaking shall be taken into account; or

(ii) a proportional share of that solvency deficit

shall be taken into account, if the group supervisor so

determines in accordance with sub-regulations (4) or (5);

(b) the proportional share shall be determined by the

group supervisor if such a determination is made in accordance

with sub-regulation (6).

(4) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

and is of the opinion that the responsibility of the parent undertaking

owning a share of the capital is strictly limited to that share of the

capital, the group supervisor may nevertheless allow for the solvency

deficit of the subsidiary undertaking to be taken into account on a

proportional basis.

(5) Where the competent authority is the group supervisor of a

group, and in the opinion of a European regulatory authority

concerned the responsibility of the parent undertaking owning a share

of the capital is strictly limited to that share of the capital, the

competent authority may nevertheless allow for the solvency deficit

of the subsidiary undertaking to be taken into account on a

proportional basis.

(6) Where the competent authority is the group supervisor of a

group, the authority shall, after consulting the European regulatory

authority concerned and the group itself, determine the proportional

share which shall be taken into account in the calculation of group

solvency, in any of the following cases

(a) where there are no capital ties between some of the

undertakings in a group;

(b) where a European regulatory authority has

determined that the holding, directly or indirectly, of voting

rights or capital in an undertaking qualifies as a participation

because, in its opinion, a significant influence is effectively

exercised over that undertaking;

(c)

where a European regulatory authority has

determined that an undertaking is a parent undertaking of

another because, in the opinion of that regulatory authority, it

effectively exercises a dominant influence over that other

undertaking.

(1) The own funds eligible for the Solvency Capital

Requirement shall not be taken into account more than once among

the different insurance or reinsurance undertakings, in a group, in the

calculation of the group solvency.

(2) For the purposes of sub-regulation (1), when calculating

the group solvency and where method 1 and method 2 do not provide

for it, the following amounts shall be excluded

(a)

the value of any asset of the participating insurance

or reinsurance undertaking, which represents the financing of

own funds eligible for the Solvency Capital Requirement of one

of its related insurance or reinsurance undertakings;

(b) the value of any asset of a related insurance or

reinsurance undertaking of the participating insurance or

reinsurance undertaking which represents the financing of own

funds eligible for the Solvency Capital Requirement of that

participating insurance or reinsurance undertaking;

(c)

the value of any asset of a related insurance or

reinsurance undertaking of the participating insurance or

reinsurance undertaking, which represents the financing of own

funds eligible for the Solvency Capital Requirement of any

other related insurance or reinsurance undertaking of that

participating insurance or reinsurance undertaking.

(3) Without prejudice to sub-regulation (2), the following may

be included in the calculation only in so far as they are eligible for

covering the Solvency Capital Requirement of the related undertaking

concerned

(a)

surplus funds falling under Article 91(2) of the

Solvency II Directive arising in a related insurance or

reinsurance undertaking carrying on long term business, of the

participating insurance or reinsurance undertaking for which the

group solvency is calculated;

(b) any subscribed but not paid-up capital of a related

insurance or reinsurance undertaking of the participating

insurance or reinsurance undertaking for which the group

solvency is calculated.

(4) Notwithstanding sub-regulation (3), the following shall in

any event be excluded from the calculation

(a)

subscribed but not paid-up capital which represents

a potential obligation on the part of the participating

undertaking;

(b) subscribed but not paid-up capital of the

participating insurance or reinsurance undertaking, which

represents a potential obligation on the part of a related

insurance or reinsurance undertaking;

(c)

subscribed but not paid-up capital of a related

insurance or reinsurance undertaking which represents a

potential obligation on the part of another related insurance or

reinsurance undertaking of the same participating insurance or

reinsurance undertaking.

(5) Where the competent authority considers that certain own

funds eligible for the Solvency Capital Requirement of a related

insurance or reinsurance undertaking other than those referred to in

sub-regulations (3) and (4), cannot effectively be made available to

cover the Solvency Capital Requirement of the participating

insurance or reinsurance undertaking for which the group solvency is

calculated, those own funds may be included in the calculation only

in so far as they are eligible for covering the Solvency Capital

Requirement of that related undertaking.

(6) The sum of the own funds referred to in sub-regulations (3)

to (5), shall not exceed the Solvency Capital Requirement of the

related insurance or reinsurance undertaking.

(7) Any eligible own funds of a related insurance or

reinsurance undertaking of the participating insurance or reinsurance

undertaking for which the group solvency is calculated that are

subject to prior authorisation from the competent authority or the

relevant European regulatory authority in accordance with Article 90

of the Solvency II Directive, shall be included in the calculation only

in so far as they have been duly authorised by the competent authority

or the relevant European regulatory authority, responsible for the

supervision of that related undertaking.

(1) When calculating group solvency, no account shall

be taken of any own funds eligible for the Solvency Capital

Requirement arising out of reciprocal financing between the

participating insurance or reinsurance undertaking and any of the

following

(a)

a related undertaking;

(b)

a participating undertaking;

(c)

another related

undertaking

of

any

of

its

participating undertakings.

(2) When calculating group solvency, no account shall be

taken of any own funds eligible for the Solvency Capital Requirement

of a related insurance or reinsurance undertaking of the participating

insurance or reinsurance undertaking for which the group solvency is

calculated where the own funds concerned arise out of reciprocal

financing with any other related undertaking of that participating

insurance or reinsurance undertaking.

(3) Reciprocal financing shall be deemed to exist at least

where an insurance or reinsurance undertaking, or any of its related

undertakings, holds shares in, or makes loans to, another undertaking

which, directly or indirectly, holds own funds eligible for the

Solvency Capital Requirement of the first undertaking.

The value of the assets and liabilities shall be assessed in Valuation.

accordance with Insurance Rules issued under article 18D of the Act.

(1) Where an authorised insurance undertaking or an Related

authorised reinsurance undertaking has more than one related insurance

reinsurance

insurance or reinsurance undertaking, the group solvency calculation undertakings.

shall be carried out by including each of those related insurance or

reinsurance undertakings.

(2) Where the related insurance or reinsurance undertaking has

its head office in a Member State or EEA State other than that of the

authorised insurance undertaking or authorised reinsurance

undertaking for which the group solvency calculation is carried out,

the calculation is to take into account, in respect of the related

undertaking, of the Solvency Capital Requirement and the own funds

eligible to satisfy that requirement as laid down in that other Member

State or EEA State.

(1) When calculating the group solvency of an Intermediate

authorised insurance undertaking or an authorised reinsurance insurance

holding

undertaking, in a group, which holds a participation in

companies.

(a)

a related insurance undertaking;

(b)

a related reinsurance undertaking;

(c)

a related third-country insurance undertaking; or

(d)

a related third-country reinsurance undertaking,

through an insurance holding company or a mixed financial holding

company, the situation of such an insurance holding company or

mixed financial holding company shall be taken into account.

(2) For the sole purpose of that calculation, the intermediate

insurance holding company or intermediate mixed financial holding

company shall be treated as if it were an insurance or reinsurance

undertaking, subject to the rules laid down in Articles 100 to 127 of

the Solvency II Directive, in respect of the Solvency Capital

Requirement and were subject to the same conditions as are laid down

in Articles 87 to 99 of the Solvency II Directive, in respect of own

funds eligible for the Solvency Capital Requirement.

(3) In cases where an intermediate insurance holding company

or intermediate mixed financial holding company holds subordinated

debt or other eligible own funds subject to limitation in accordance

with Article 98 of the Solvency II Directive, they shall be recognised

as eligible own funds up to the amounts calculated by application of

the limits set out in the said Article to the total eligible own funds

outstanding at group level as compared to the Solvency Capital

Requirement at group level.

(4) Any eligible own funds of an intermediate insurance

holding company or intermediate mixed financial holding company,

which would require prior authorisation from the competent authority

or the European regulatory authority concerned, in accordance with

Article 90 of the Solvency II Directive if they were held by an

authorised insurance undertaking, an authorised reinsurance

undertaking, a European insurance undertaking or a European

reinsurance undertaking, may be included in the calculation of the

group solvency only in so far as they have been duly authorised by

the group supervisor, or by the competent authority where it is the

group supervisor of a group.

(1) When calculating the group solvency of an

authorised insurance undertaking or an authorised reinsurance

undertaking which is a participating undertaking in a third-country

insurance undertaking or third-country reinsurance undertaking, in

accordance with method 2, such third-country insurance or

reinsurance undertaking shall, solely for the purposes of that

calculation, be treated as a related insurance or reinsurance

undertaking.

(2) Notwithstanding sub-regulation (1), where the third

country in which that undertaking has its head office is subject to

authorisation and has a solvency regime at least equivalent to that

specified in Articles 75 to 135 of the Solvency II Directive, the

competent authority may provide that the calculation in sub-

regulation (1) shall take into account, as regards that undertaking, the

Solvency Capital Requirement and the own funds eligible to satisfy

that requirement as laid down by the third country concerned.

(3) Where the competent authority is the group supervisor of a

group and no delegated act has been adopted in accordance with

Article 227(4) or (5) of the Solvency II Directive, the competent

authority shall at the request of the participating undertaking, or on its

own initiative, make the verification of whether the third country

solvency regime is at least equivalent to Articles 75 to 135 of the

Solvency II Directive.

(4) Where the competent authority is the group supervisor of a

group, the authority shall

(a)

consult the other European regulatory authorities

concerned in the supervision of the group before taking a

decision on equivalence under sub-regulation (3), with the

assistance of EIOPA in accordance with Article 33(2) of

Regulation (EU) No 1094/2010;

(b) take the decision on equivalence in accordance with

the criteria set out in any delegated acts adopted under Article

227(3) of the Solvency II Directive; and

(c)

ensure that its decision in relation to a third country

is not contradicting any decision taken vis-à-vis that third

country previously, except where it is necessary to take into

account significant changes to the supervisory regime laid down

in Articles 75 to 135 of the Solvency II Directive and to the

supervisory regime in the third country.

(5) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

and disagrees with the decision taken in accordance with sub-

paragraph (2) of Article 227(2) of the Solvency II Directive, the

competent authority may refer the matter to EIOPA and request its

assistance in accordance with Article 19 of Regulation (EU) No 1094/

2010 within three months after notification of the decision by the

group supervisor.

When calculating the group solvency of an authorised Related credit

insurance undertaking or an authorised reinsurance undertaking, institutions,

investment

which is a participating undertaking in a credit institution, investment firms

financial

firm or financial institution, the participating insurance and institutions.

reinsurance undertaking shall

(a) apply methods 1 or 2 set out in Annex I to Directive

2002/87/EC mutatis mutandis, provided that, method 1 set out

in that Annex shall be applied only where the group supervisor

or where the competent authority is the group supervisor of a

group, the competent authority, as applicable, is satisfied as to

the level of integrated management and internal control

regarding the undertakings which would be included in the

scope of consolidation, and provided always that the method

chosen shall be applied in a consistent manner over time; or

(b) deduct any participation as referred to in paragraph

(a) from the own funds eligible for the group solvency of the

participating undertaking, where the group supervisor or the

competent authority as group supervisor so decides, either at the

request of the participating undertaking or on its own initiative.

Where the information necessary for calculating the group

solvency of an authorised insurance undertaking or an authorised

reinsurance undertaking, in a group, concerning a related undertaking

with its head office in a Member State or EEA State, or in a third

country, is not available to the competent authority, where it is the

group supervisor of a group

(a) the book value of that related undertaking in the

participating insurance or reinsurance undertaking shall be

deducted from the own funds eligible for the group solvency;

and

(b) the unrealised gains connected with such

participation shall not be recognised as own funds eligible for

the group solvency.

(1) The calculation of the group solvency of the

participating insurance or reinsurance undertaking, shall be carried

out on the basis of the consolidated accounts.

(2) The group solvency of the participating insurance or

reinsurance undertaking is the difference between the following

(a)

the own funds eligible to cover the Solvency Capital

Requirement, calculated on the basis of consolidated data; and

(b) the Solvency Capital Requirement at group level

calculated on the basis of consolidated data.

(3) The rules laid down in Articles 87 to 127 of the Solvency

II Directive shall apply for the calculation of the own funds eligible

for the Solvency Capital Requirement and of the Solvency Capital

Requirement at group level based on consolidated data.

(4) The Solvency Capital Requirement at group level based on

consolidated data ("consolidated group Solvency Capital

Requirement") shall be calculated on the basis of either the standard

formula or an approved internal model, in a manner consistent with

the general principles contained in Articles 87 to 97, 100 to 102 and

112 to 127 of the Solvency II Directive.

(5) The consolidated group Solvency Capital Requirement

shall have as a minimum the sum of the following

(a) the Minimum Capital Requirement as referred to in

Article 129 of the Solvency II Directive, of the participating

insurance or reinsurance undertaking; and

(b) the proportional share of the Minimum Capital

Requirement of the related insurance and reinsurance

undertakings.

(6) That minimum shall be covered by eligible basic own

funds as determined in Article 98(4) of the Solvency II Directive.

(7) For the purposes of determining whether such eligible own

funds qualify to cover the minimum consolidated group Solvency

Capital Requirement, the principles set out in Articles 221 to 229 of

the Solvency II Directive shall apply mutatis mutandis. Article 139(1)

and (2) of the Solvency II Directive shall also apply mutatis

mutandis.

(1) An application for permission to calculate the Group internal

consolidated group Solvency Capital Requirement, as well as the model.

Solvency Capital Requirement of an authorised insurance

undertaking, an authorised reinsurance undertaking, a European

insurance undertaking or a European reinsurance undertaking, in a

group, on the basis of an internal model, submitted by such an

undertaking and its related undertakings, or jointly by the related

undertakings of an insurance holding company, shall be submitted to

the group supervisor or to the competent authority where is the group

supervisor of a group, as applicable.

(2) Where the competent authority is the group supervisor of a

group, upon receipt of an application as referred to in sub-regulation

(1), it shall inform the other members of the college of supervisors

and forward the complete application to them, without delay.

(3) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor

(a) it shall cooperate with other European regulatory

authorities concerned, to decide whether or not to grant the

permission referred to in sub-regulation (1) and to determine the

terms and conditions, if any, to which such permission is

subject;

(b) it shall do everything within its power to reach a

joint decision on the application within six months from the date

of receipt of the complete application by the group supervisor;

and

(c)

it may, within the six-month period referred to in

paragraph (b) or before a joint-decision has been reached, refer

the matter to EIOPA in accordance with Article 19 of

Regulation (EU) No 1094/2010, and the decision of the group

supervisor which is taken in conformity with EIOPA’s decision,

shall be recognised as determinative and shall be applied by the

competent authority.

(4) If in accordance with Articles 41(2) and (3) and Articles

44(1) and (3) of Regulation (EU) No 1094/2010, the decision

proposed by the panel is rejected, the group supervisor shall take a

final decision and that decision shall be recognised as determinative

and applied by the competent authority.

(5) Where the competent authority is the group supervisor of a

group

(a) if within the six-month period referred to in Article

231(3) of the Solvency II Directive or before a joint-decision

has been reached, any of the European regulatory authorities

concerned has referred the matter to EIOPA in accordance with

Article 19 of Regulation (EU) No 1094/2010, the competent

authority shall defer its decision and await any decision that

EIOPA may take in accordance with Article 19(3) of that

Regulation, and shall take its decision in conformity with

EIOPA’s decision. That decision shall be recognised as

determinative and applied by the European regulatory

authorities concerned; and

(b) if in accordance with Articles 41(2) and (3) and

Articles 44(1) and (3) of Regulation (EU) No 1094/2010, the

decision proposed by the panel is rejected, the competent

authority shall take a final decision, and that decision shall be

recognised as determinative and shall be applied by the

European regulatory authorities concerned.

(6) Where the competent authority is the group supervisor of a

group, the authority shall

(a)

where the competent authority and the European

regulatory authorities concerned have reached a joint decision,

provide the applicant referred to in sub-regulation (1) with a

document setting out the full reasons; and

(b) in the absence of the adoption of a joint decision

within six months from the receipt of the complete application

sent by it, make its own decision on the application, taking into

account any views and reservations of the other European

regulatory authorities concerned expressed during that six-

month period and shall provide the applicant referred to in sub-

regulation (1) and the other European regulatory authorities

concerned, with a document setting out its fully reasoned

decision which shall be recognised as determinative and shall be

applied by the European regulatory authorities concerned.

(7) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor, in

the absence of the adoption of a joint decision within six months from

the date of receipt of the complete application by the group, the

decision of the group supervisor on the application, shall be

recognised as determinative.

(8) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

and it considers that the risk profile of an authorised insurance

undertaking or an authorised reinsurance undertaking deviates

significantly from the assumptions underlying the internal model

approved at group level, and that undertaking has not properly

addressed the concerns of the competent authority, the competent

authority may

(a)

in accordance with Article 37 of the Solvency II

Directive, impose a capital add-on to the Solvency Capital

Requirement of that insurance or reinsurance undertaking

resulting from the application of such internal model;

(b) in exceptional circumstances, where such capital

add-on imposed under paragraph (a) would not be appropriate,

require the undertaking concerned to calculate its Solvency

Capital Requirement on the basis of the standard formula

referred to in Articles 87 to 97 of the Solvency II Directive; or

(c)

where the competent authority has exercised its

discretion under paragraph (b), to require an authorised

insurance undertaking or an authorised reinsurance undertaking

to calculate its Solvency Capital Requirement on the basis of the

standard formula, impose a capital add-on to the Solvency

Capital Requirement in accordance with Article 37(1)(a) and (c)

of the Solvency II Directive.

(9) The competent authority shall explain any decision

referred to in sub-regulation (8) to the authorised insurance

undertaking or authorised reinsurance undertaking concerned and the

other members of the college of supervisors.

(1) Where the competent authority is the group

supervisor of a group, the authority shall, in determining whether the

consolidated group Solvency Capital Requirement appropriately

reflects the risk profile of the group, pay attention to any case where

the circumstances referred to in Article 37(1)(a) to (d) of the

Solvency II Directive may arise at group level, in particular where

(a) a specific risk existing at group level would not be

sufficiently covered by the standard formula or the internal

model used, because it is difficult to quantify;

(b) a capital add-on to the Solvency Capital

Requirement of the related insurance or reinsurance

undertakings is imposed by the European regulatory authorities

concerned, in accordance with Article 37 and Article 231(7) of

the Solvency II Directive.

(2) Where the competent authority is the group supervisor of a

group, the authority may, where the risk profile of the group is not

adequately reflected, impose a capital add-on to the consolidated

group Solvency Capital Requirement.

(3) Article 37(1) to (5) of the Solvency II Directive, together

with the delegated acts and implementing technical standards taken in

accordance with Article 37(6), (7) and (8) of the Solvency II

Directive, shall apply mutatis mutandis.

(1) The group solvency of the participating insurance or

reinsurance undertaking shall be the difference between the

following

(a) the aggregated group eligible own funds, as

provided for in sub-regulation (2);

(b) the value in that participating insurance or

reinsurance undertaking of the related insurance or reinsurance

undertakings and the aggregated group Solvency Capital

Requirement, as provided for in sub-regulation (3).

(2) The aggregated group eligible own funds are the sum of

the following

(a)

the own funds eligible for the Solvency Capital

Requirement of the participating insurance or reinsurance

undertaking;

(b) the proportional share of the participating insurance

or reinsurance undertaking in the own funds eligible for the

Solvency Capital Requirement of the related insurance or

reinsurance undertakings.

(3) The aggregated group Solvency Capital Requirement is the

sum of the following

(a)

the Solvency Capital Requirement

of

the

participating insurance or reinsurance undertaking;

(b) the proportional share of the Solvency Capital

Requirement of the related insurance or reinsurance

undertakings.

(4) Where, in a group, the participation in the related

insurance or reinsurance undertakings consists, wholly or in part, of

an indirect ownership, the value in the participating insurance or

reinsurance undertaking of the related insurance or reinsurance

undertakings shall incorporate the value of such indirect ownership,

taking into account the relevant successive interests, and the items

referred to in sub-regulations (2)(b) and (3)(b) shall include the

corresponding proportional shares, respectively, of the own funds

eligible for the Solvency Capital Requirement of the related insurance

or reinsurance undertakings and of the Solvency Capital Requirement

of the related insurance or reinsurance undertakings.

(5) Any application for permission to calculate the Solvency

Capital Requirement of authorised insurance undertakings, authorised

reinsurance undertakings, European insurance undertakings or

European reinsurance undertakings in the group, on the basis of an

internal model, submitted by the insurance or reinsurance undertaking

concerned and its related undertakings, or jointly by the related

undertakings of an insurance holding company or mixed financial

holding company, shall be submitted to the group supervisor, or

where the competent authority is the group supervisor of a group, the

competent authority, as applicable, and in such a case the provisions

of regulation 23 shall apply mutatis mutandis.

(6) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor

(a) in determining whether the aggregated group

Solvency Capital Requirement, as set out in sub-regulation (3),

appropriately reflects the risk profile of the group, it shall pay

particular attention to any specific risks existing at group level

which would not be sufficiently covered, because they are

difficult to quantify;

(b) it may impose a capital add-on to the aggregated

group Solvency Capital Requirement, where the risk profile of

the group deviates significantly from the assumptions

underlying the aggregated group Solvency Capital

Requirement.

(7) Article 37(1) to (5) of the Solvency II Directive, together

with the delegated acts and implementing technical standards taken in

accordance with Article 37(6), (7) and (8) of the Solvency II

Directive, shall apply mutatis mutandis.

(1) Where the competent authority is the group

supervisor of a group, the authority shall, where authorised insurance

undertakings, authorised reinsurance undertakings, European

insurance undertakings or European reinsurance undertakings are

subsidiaries of an insurance holding company or of a mixed financial

holding company, ensure that the calculation of the solvency of the

group is carried out at the level of the insurance holding company or

the mixed financial holding company applying Article 220(2) to

Article 233 of the Solvency II Directive.

(2) For the purpose of that calculation, the insurance holding

company or mixed financial holding company shall be treated as if it

were an insurance or reinsurance undertaking subject to the rules laid

down in Articles 100 to 127 of the Solvency II Directive as regards

the Solvency Capital Requirement and subject to the same conditions

as laid down in Article 87 to 99 of the Solvency II Directive as

regards the own funds eligible for the Solvency Capital Requirement.

(1) Where the competent authority is one of the

authorities responsible for the supervision of an individual insurance

or reinsurance undertaking in a group and is not the group supervisor,

and an authorised insurance undertaking or an authorised reinsurance

undertaking is the subsidiary undertaking of an authorised insurance

undertaking, an authorised reinsurance undertaking, a European

insurance undertaking or a European reinsurance undertaking,

Articles 238 and 239 of the Solvency II Directive shall apply, where

all of the following conditions are satisfied

(a) the subsidiary undertaking, in relation to which the

group supervisor, has not made a decision under Article 214(2)

of the Solvency II Directive is included in the group supervision

carried out by the group supervisor at the level of the parent

undertaking in accordance with Articles 212 to 266 of the

Solvency II Directive;

(b) the risk-management processes and internal control

mechanisms of the parent undertaking cover the subsidiary

undertaking and the parent undertaking satisfies the competent

authority regarding the prudent management of the subsidiary;

(c)

the parent undertaking has received the agreement

referred to in Article 246(4) of the Solvency II Directive;

(d) the parent undertaking has received the agreement

referred to in Article 256(2) of the Solvency II Directive;

(e)

an application for permission to be subject to

Articles 238 and 239 of the Solvency II Directive has been

submitted by the parent undertaking and a favourable decision

has been made on such application in accordance with the

procedure set out in Article 237 of the Solvency II Directive.

(2) Where the competent authority is the group supervisor of a

group, and an authorised insurance undertaking or an authorised

reinsurance undertaking, a European insurance undertaking or a

European reinsurance undertaking is the subsidiary undertaking of an

authorised insurance undertaking, an authorised reinsurance

undertaking, a European insurance undertaking or a European

reinsurance undertaking, Articles 238 and 239 of the Solvency II

Directive shall apply, where all of the following conditions are

satisfied

(a) the subsidiary undertaking, in relation to which the

competent authority has not made a decision under Article

214(2) of the Solvency II Directive, is included in the group

supervision carried out by the group supervisor at the level of

the parent undertaking in accordance with these regulations;

(b) the risk-management processes and internal control

mechanisms of the parent undertaking cover the subsidiary

undertaking and the parent undertaking satisfies the other

responsible authorities in the group regarding the prudent

management of the subsidiary;

(c)

the parent undertaking has received the agreement

referred to in Article 246(4) of the Solvency II Directive;

(d) the parent undertaking has received the agreement

referred to in Article 256(2) of the Solvency II Directive;

(e)

an application for permission to be subject to

Articles 238 and 239 of the Solvency II Directive has been

submitted by the parent undertaking and a favourable decision

has been made on such application in accordance with the

procedure set out in Article 237 of the Solvency II Directive.

(1) Where the competent authority is one of the

authorities responsible for the supervision of an individual insurance

or reinsurance undertaking in a group and is not the group supervisor,

and where the subsidiary undertaking is an authorised insurance

undertaking or an authorised reinsurance undertaking, an application

for permission to subject that subsidiary undertaking to the rules laid

down in Articles 238 and 239 of the Solvency II Directive, shall be

submitted to the competent authority by its parent undertaking. The

competent authority shall, without delay, inform the other members of

the college of supervisors and forward the complete application to

them.

(2) For the purposes of sub-regulation (1), the competent

authority shall work together with other European regulatory

authorities concerned, within the college of supervisors, in full

cooperation, to decide whether or not to grant the permission sought

and to determine the other terms and conditions, if any, to which such

permission should be subjected.

(3) A joint decision by all the European regulatory authorities,

including the competent authority, within the college of supervisors,

shall be made within three months from the date of receipt of the

complete application.

(4) If, within the three-month period or before a joint decision

has been reached, any of the regulatory authorities concerned referred

to in sub-regulation (3), referred the matter to EIOPA in accordance

with Article 19 of Regulation (EU) No 1094/2010, the decision of the

group supervisor, taken in conformity with EIOPA’s decision, shall be

recognised as determinative and shall be applied by such authorities.

(5) If, in accordance with Articles 41(2) and (3) and Articles

44(1) and (3) of Regulation (EU) No 1094/2010, the decision

proposed by the panel is rejected, the final decision taken by the

group supervisor shall be recognised as determinative and shall be

applied by all the regulatory authorities concerned.

(6) Where the competent authority is the group supervisor of

the group

(a)

if within the three-month period or before a joint

decision has been reached, as referred to in Article 273 of the

Solvency II Directive, any of the European regulatory

authorities concerned has referred the matter to EIOPA in

accordance with Article 19 of Regulation (EU) No 1094/2010,

the competent authority shall defer its decision and await any

decision that EIOPA may take in accordance with Article 19(3)

of that Regulation, and shall take its decision in conformity with

EIOPA's decision. That decision shall be recognised as

determinative and shall be applied by the European regulatory

authorities concerned; and

(b) if, in accordance with Articles 41(2) and (3) and

Articles 44(1) and (3) of Regulation (EU) No 1094/2010, the

decision proposed by the panel is rejected, the competent

authority shall take a final decision and that decision shall be

recognised as determinative and shall be applied by the

European regulatory authorities concerned.

(7) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor

(a)

if a joint decision referred to in sub-regulation (3)

has been reached, it shall provide the applicant referred to in

sub-regulation (1), with the decision stating the full reasons, and

such joint decision shall be recognised as determinative and

shall be applied by the regulatory authorities concerned;

(b) in the absence of a joint decision in accordance with

sub-regulation (3), the decision of the group supervisor with

regard to the application shall be recognised as determinative

and applied by all the regulatory authorities concerned.

(8) Where the competent authority is the group supervisor of a

group

(a)

in the absence of a joint decision of the European

regulatory authorities concerned within the three-month period

set out in Article 237(2) of the Solvency II Directive, the

competent authority shall take its own decision with regard to

the application referred to in Article 237(1) of the Solvency II

Directive;

(b) during the three-month period referred to in

paragraph (a), the competent authority shall duly consider any

views and reservations of the European regulatory authority

concerned which authorised the subsidiary undertaking and any

reservations of the other European regulatory authorities within

the college of supervisors.

(9) A decision taken in accordance with sub-regulation (8),

shall state the full reasons and shall contain an explanation of any

significant deviation from the reservations of the other European

regulatory authorities concerned, and shall provide the applicant and

the other European regulatory authorities concerned with a copy of

the decision taken by the competent authority, which decision shall be

recognised as determinative and shall be applied by the European

regulatory authorities concerned.

(1) Where the subsidiary undertaking is an authorised

insurance undertaking or an authorised reinsurance undertaking,

without prejudice to regulation 23, the Solvency Capital Requirement

of the subsidiary shall be calculated in accordance with sub-

regulations (2) and (4) to (7).

(2) Where the Solvency Capital Requirement of the subsidiary

undertaking is calculated on the basis of an internal model approved

at group level in accordance with regulation 23 and the competent

authority considers that the risk profile of the subsidiary undertaking,

deviates significantly from this internal model, and as long as that

undertaking does not properly address the concerns of the competent

authority, the competent authority may, in the cases referred to in

Article 37 of the Solvency II Directive

(a) propose to set a capital add-on to the Solvency

Capital Requirement of that subsidiary undertaking resulting

from the application of such model; or

(b) in exceptional circumstances where such capital

add-on would not be appropriate, to require that undertaking to

calculate its Solvency Capital Requirement on the basis of the

standard formula.

(3) Where the Solvency Capital Requirement of the subsidiary

undertaking is calculated on the basis of the standard formula and the

competent authority considers that the risk profile of the subsidiary

undertaking, deviates significantly from the assumptions underlying

the standard formula, and as long as that undertaking does not

properly address the concerns of the competent authority, the

competent authority may, in exceptional circumstances, propose that

the undertaking replace a subset of the parameters used in the

standard formula calculation by parameters specific to that

undertaking when calculating the long-term business of insurance,

general business of insurance and health underwriting risk modules,

as set out in Article 110 of the Solvency II Directive, or in the cases

referred to in Article 37 of the Solvency II Directive, to set a capital

add-on to the Solvency Capital Requirement of that subsidiary

undertaking.

(4) In the cases referred to in sub-regulations (2) and (3)

(a) the competent authority shall discuss its proposal

within the college of supervisors and communicate the grounds

for such proposals to both the subsidiary undertaking and the

college of supervisors; and

(b) the college of supervisors shall do everything within

its power to reach an agreement on the proposal of the

competent authority or on other possible measures and the

agreement reached shall be recognised as determinative and

shall be applied by the competent authority and by the European

regulatory authorities concerned.

(5) Where the competent authority and the group supervisor

disagree, any one of them may, within one month from the proposal

of the competent authority and before an agreement has been reached

within the college of supervisors in accordance with sub-regulation

(4), refer the matter to EIOPA and request its assistance in accordance

with Article 19 of Regulation (EU) No 1094/2010.

(6) In the circumstances referred to in sub-regulation (5)

(a) the competent authority shall defer its decision and

await any decision that EIOPA may take in accordance with

Article 19 of that Regulation;

(b) the competent authority shall take its decision in

conformity with EIOPA’s decision and shall state the full

reasons on which it is based; and

(c)

the decision taken by the competent authority shall

be submitted to the subsidiary undertaking and to the college of

supervisors.

(7) In the cases referred to in Article 238(2) and (3) of the

Solvency II Directive, where the competent authority is the group

supervisor of a group, and where the competent authority and the

European regulatory authority having authorised the subsidiary

undertaking disagree, the competent authority may, within one month

from the proposal and before an agreement has been reached within

the college of supervisors in accordance with Article 238(4) of the

Solvency II Directive, refer the matter to EIOPA and request its

assistance in accordance with Article 19 of Regulation (EU) No 1094/

2010.

(1) Where the subsidiary undertaking is an authorised

insurance undertaking or an authorised reinsurance undertaking, in

the event of non-compliance with the Solvency Capital Requirement

and without prejudice to article 16 of the Act, the competent authority

shall, without delay, forward to the college of supervisors the

recovery plan submitted by the subsidiary undertaking, in order to

achieve, within six months from the observation of non-compliance

with the Solvency Capital Requirement, the re-establishment of the

level of eligible own funds or the reduction of its risk profile to ensure

compliance with the Solvency Capital Requirement.

(2) The college of supervisors shall do everything within its

power to reach an agreement on the proposal of the competent

authority in accordance with sub-regulation (1), regarding the

approval of the recovery plan within four months from the date on

which non-compliance with the Solvency Capital Requirement was

first observed.

(3) In the absence of an agreement in accordance with sub-

regulation (2), the competent authority shall decide whether the

recovery plan should be approved, taking due account of the views

and reservations of the other European regulatory authorities within

the college of supervisors.

(4) Where the subsidiary undertaking is an authorised

insurance undertaking or an authorised reinsurance undertaking and

the competent authority identifies, in accordance with Article 136 of

the Solvency II Directive, deteriorating financial conditions

(a)

it shall notify the college of supervisors without

delay of the proposed measures to be taken, provided that, in

emergency situations, the measures to be taken shall be

discussed within the college of supervisors;

(b) the college of supervisors shall do everything within

its power to reach an agreement on the proposed measures to be

taken within one month of notification; and

(c)

in the absence of such agreement referred to in

paragraph (b), the competent authority shall decide whether the

proposed measures shall be approved, taking due account of the

views and reservations of the other European regulatory

authorities within the college of supervisors.

(5) In the event of non-compliance with the Minimum Capital

Requirement by a subsidiary undertaking, which is an authorised

insurance or reinsurance undertaking and without prejudice to article

18 of the Act, the competent authority shall

(a) without delay, forward to the college of supervisors

the short-term finance scheme submitted to it by the subsidiary

undertaking, in order to achieve, within three months from the

date on which non-compliance with the Minimum Capital

Requirement was first observed, the re-establishment of the

level of eligible own funds covering the Minimum Capital

Requirement or the reduction of its risk profile to ensure

compliance with the Minimum Capital Requirement; and

(b) shall also inform the college of supervisors of any

measures taken to enforce the Minimum Capital Requirement at

the level of the subsidiary.

(6) The competent authority as one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor, or

the group supervisor, as applicable, may refer the matter to EIOPA

and request its assistance in accordance with Article 19 of Regulation

(EU) No 1094/2010 where they disagree regarding either of the

following

(a) on the approval of the recovery plan, including any

extension of the recovery period, within the four-month period

referred to in sub-regulation (2); or

(b) on the approval of the proposed measures, within the

one-month period referred to in sub-regulation (4)(b).

(7) Where the competent authority is the group supervisor of a

group, the authority may refer the matter to EIOPA, where the

competent authority and the European regulatory authority disagree

regarding either of the following

(a)

on the approval of the recovery plan, including any

extension of the recovery period, within the four-month period

referred to in sub-regulation (2); or

(b) on the approval of the proposed measures, within the

one-month period referred to in sub-regulation (4)(b).

(8) The matter shall not be referred to EIOPA

(a) after the end of the four-month or the one-month

period respectively referred to in sub-regulation (6) and (7);

(b) after an agreement has been reached within the

college of supervisors in accordance with sub-regulations (2) or

(4)(b); and

(c)

in the case of emergency situations as referred to in

sub-regulation 4(a).

(9) Where the subsidiary undertaking is an authorised

insurance undertaking or an authorised reinsurance undertaking the

competent authority shall

(a)

defer its decision and await any decision that EIOPA

may take in accordance with Article 19(3) of Regulation (EU)

No 1094/2010;

(b) take its final decision in conformity with EIOPA’s

decision, and state the full reasons on which that decision is

based, which decision shall be recognised as determinative and

shall be applied by the European regulatory authorities

concerned; and

(c)

submit the decision referred to in paragraph (b) to

the subsidiary undertaking and to the college of supervisors.

(10) Where the competent authority is the group supervisor of a

group, in the circumstances referred to in Article 239 of the Solvency

II Directive, when the European regulatory authority having

authorised the subsidiary undertaking and the competent authority

disagree, any one of them may refer the matter to EIOPA and request

its assistance in accordance with Article 19 of Regulation (EU) No

1094/2010, regarding either of the following

(a) on the approval of the recovery plan, including any

extension of the recovery period, within the four-month period

referred to in Article 239 (1) of the Solvency II Directive; or

(b)

on the approval of the proposed measures, within the

one-month period referred to in Article 239 (2) of the Solvency

II Directive.

(11) The matter shall not be referred to EIOPA

(a) after the end of the four-month or the one-month

period respectively referred to in sub-regulation (10)(a);

(b) after an agreement has been reached within the

college of supervisors in accordance with Article 239(1) and (2)

of the Solvency II Directive; and

(c)

in the case of emergency situations as referred to in

Article 239 (2) of the Solvency II Directive.

(1)

Regulations 29 and 30 shall no longer be applicable Subsidiaries of

an insurance or

where

reinsurance

undertaking

end of

(a)

the condition referred to in Article 236(a) of the

derogations for

Solvency II Directive is no longer complied with;

a subsidiary.

(b) the condition referred to in Article 236(b) of the

Solvency II Directive is no longer complied with and the group

does not restore compliance with this condition in an

appropriate period of time; or

(c)

the conditions referred to in Article 236(c) and (d) of

the Solvency II Directive are no longer complied with.

(2) In the case referred to in sub-regulation (1)(a), where the

competent authority is the group supervisor of a group, and it decides,

after consulting the college of supervisors, to no longer include the

subsidiary undertaking in the group supervision it carries out, it shall

immediately inform the European regulatory authority concerned and

the parent undertaking.

(3) For the purposes of Article 236(b), (c) and (d) of the

Solvency II Directive, the parent undertaking shall

(a) be responsible for ensuring that the conditions are

complied with on an ongoing basis;

(b) in the event of non-compliance, it shall inform,

without delay, the competent authority, where the authority is

the group supervisor of a group, and the European regulatory

authority of the subsidiary undertaking concerned; and

(c)

present a plan to restore compliance within an

appropriate period of time to the competent authority, where the

authority is the group supervisor of a group, and to the European

regulatory authority of the subsidiary undertaking concerned.

(4) Without prejudice to sub-regulation (3), where the

competent authority is the group supervisor of a group, the authority

shall

(a)

verify at least annually, on its own initiative, that the

conditions referred to in regulation 27(2)(b), (c) and (d)

continue to be complied with; and

(b) also perform such verification upon request from the

European regulatory authority concerned, where the latter has

significant concerns related to the ongoing compliance with

those conditions.

(5) Where the verification performed identifies weaknesses,

and where the competent authority is the group supervisor of a group,

the authority shall require the parent undertaking to present a plan to

restore compliance within an appropriate period of time.

(6) Where the competent authority is the group supervisor of a

group, and after consulting the college of supervisors, the authority

determines that the plan referred to in sub-regulations (3)(b) or (5), is

insufficient or subsequently that it is not being implemented within

the agreed period of time, the competent authority shall conclude that

the conditions referred to in regulation 27(2) are no longer being

complied with and it shall immediately inform the European

regulatory authority concerned.

(7) Where the parent undertaking submits a new application

and obtains a favourable decision in accordance with the procedure

set out in regulation 27, the provisions of regulations 29 and 30 shall

apply again.

Articles 236 to 242 of the Solvency II Directive shall apply

mutatis mutandis to an authorised insurance undertaking, an

authorised reinsurance undertakings, a European insurance

undertaking or a European reinsurance undertaking, which is a

subsidiary undertaking of an insurance holding company or a mixed

financial holding company.

(1) Supervision of the risk concentration at group level

and supervision of intra-group transactions shall be exercised in

accordance with sub-regulations (2) and (3), regulation 34 and

Articles 247 to 259 of the Solvency II Directive.

(2) Subject to sub-regulation (4), an authorised insurance

undertaking, an authorised reinsurance undertaking, an insurance

holding company and a mixed financial holding company, shall

report, on a regular basis, and at least annually to the group

supervisor

(a) any significant risk concentration at the level of the

group, unless regulation 5(b) applies;

(b) all significant intra-group transactions by authorised

insurance undertakings, authorised reinsurance undertakings,

European insurance undertakings and European reinsurance

undertakings, within a group, including those performed with a

natural person with close links to an undertaking in the group,

unless regulation 5(b) applies; in addition, where an intra-group

transaction is very significant, it shall be reported as soon as

practicable.

(3) The risk concentrations and intra-group transactions

referred to in sub-regulation (2), shall be subject to supervisory

review by the group supervisor.

(4) The necessary information referred to in sub-regulation

(2)(a) and (b) shall be submitted to the group supervisor

(a) by the authorised insurance undertaking or

authorised reinsurance undertaking which is at the head of the

group; or

(b) where the group is not headed by an authorised

insurance undertaking or an authorised reinsurance undertaking,

by the insurance holding company, or by the mixed financial

holding company, or by the authorised insurance undertaking,

authorised reinsurance undertaking, European insurance

undertaking or European reinsurance undertaking in the group,

as may be identified by the group supervisor, after consulting

the competent authority, the other European regulatory

authorities concerned and the group.

(5) Where the competent authority is the group supervisor of a

group, the authority shall

(a)

carry out a supervisory review of the risk

concentrations and intra-group transactions;

(b) identify, taking into account the specific group and

risk management structure of the group, the type of risks and

intra-group transactions which insurance and reinsurance

undertakings, in the group, shall report to the competent

authority in all circumstances;

(c)

impose appropriate thresholds based on solvency

capital requirements, technical provisions, or both, in order to

identify which significant risk concentrations and significant

intra-group transactions shall be reported;

(d) where the group is not headed by an insurance or

reinsurance undertaking, identify the insurance holding

company, mixed financial holding company, authorised

insurance undertaking, authorised reinsurance undertaking,

European insurance undertaking or European reinsurance

undertaking, in a group, responsible for submitting the

information required under Articles 244(2) and 245(2) of the

Solvency II Directive;

(e)

review the risk concentrations of a group and intra-

group transactions at group level, and in particular monitor the

possible risk of contagion within the group, the risk of a conflict

of interests and the level or volume of risks.

(6) The competent authority shall consult the group and the

other European regulatory authorities concerned in the supervision of

the group whilst carrying out the activities referred to in sub-

regulation (5)(b) to (d).

(7) Where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

and the competent authority is consulted by the group supervisor in

relation to the supervision of risk concentration at group level or the

reporting of intra-group transactions, the competent authority shall,

when giving its opinion about the type of risks to be reported, take

into account the specific group and risk management structure of the

group.

(1) The requirements set out in Articles 40 to 49 of the

Solvency II Directive shall apply mutatis mutandis, at the level of the

group.

(2) Without prejudice to sub-regulation (1), the risk

management and internal control systems and reporting procedures

shall be implemented consistently in all the undertakings included in

the scope of group supervision pursuant to regulation 3(2)(a) and (b)

so that those systems and reporting procedures can be controlled at

the level of the group.

(3) Without prejudice to sub-regulation (1), the group internal

control mechanisms shall include at least the following

(a) adequate mechanisms as regards group solvency to

identify and measure all material risks incurred and to

appropriately relate eligible own funds to risks;

(b) sound reporting and accounting procedures to

monitor and manage the intra-group transactions and the risk

concentration.

(4) The systems and reporting procedures referred to in sub-

regulations (1) to (3) shall be subject to supervisory review by the

group supervisor or in accordance with the rules laid down in

regulations 35 to 43.

(5) A participating insurance undertaking or reinsurance

undertaking, or the insurance holding company or the mixed financial

holding company, shall undertake at the level of the group the

assessment required by Article 45 of the Solvency II Directive. The

own-risk and solvency assessment conducted at group level shall be

subject to supervisory review by the group supervisor in accordance

with regulations 35 to 43.

(6) Where the calculation of the solvency at the level of the

group is carried out in accordance with method 1, as referred to in

regulation 22, the participating insurance or reinsurance undertaking,

or the insurance holding company or the mixed financial holding

company, shall provide to the group supervisor a proper

understanding of the difference between the sum of the Solvency

Capital Requirements of all the related insurance or reinsurance

undertakings of the group and the group consolidated Solvency

Capital Requirement.

(7) The participating insurance or reinsurance undertaking, the

insurance holding company or the mixed financial holding company,

may, subject to the agreement of the group supervisor, undertake any

assessments required pursuant to Article 45 of the Solvency II

Directive at the level of the group and at the level of any subsidiary

undertaking in the group at the same time, and may produce a single

document covering all the assessments.

(8) Where the group exercises the option provided in sub-

regulation (7), it shall submit the document to all the European

regulatory authorities concerned at the same time, and the exercise of

that option shall not exempt the subsidiaries concerned from the

obligation to ensure that the requirements of Article 45 of the

Solvency II Directive are met.

(9) Where the competent authority is the group supervisor of a

group, the authority shall

(a) review the risk management and internal control

systems and reporting procedures implemented by the group in

accordance with Article 246(1) and (2) of the Solvency II

Directive;

(b) review the own-risk and solvency assessment

conducted at group level by the group; and

(c)

consult the members of the college of supervisors

and duly take into account their views and reservations before

granting an agreement to a request from a participating

insurance or reinsurance undertaking, insurance holding

company or mixed financial holding company to undertake its

own-risk and solvency assessment in accordance with Article 45

of the Solvency II Directive, at the level of the group and at the

level of any subsidiary in the group at the same time, and

produce a single document covering all such assessments.

PART III

Measures to facilitate group supervision

(1) The group supervisor designated from among the

competent authority and the European regulatory authorities

concerned, shall be responsible for coordination and exercise of

group supervision.

(2) Where the competent authority is the supervisor of all the

insurance undertakings and reinsurance undertakings in a group, the

competent authority shall be the group supervisor of the group.

(3) In all other cases and subject to Article 247(3) of the

Solvency II Directive

(a) where the group is headed by an authorised

insurance undertaking or an authorised reinsurance undertaking,

the competent authority shall be the group supervisor of the

group;

(b) where the group is not headed by an insurance or

reinsurance undertaking, the competent authority is the group

supervisor of a group in any of the following circumstances

(i) where an insurance undertaking or

reinsurance undertaking has an insurance holding company

or a mixed financial holding company as a parent, and the

competent authority has authorised that insurance

undertaking or reinsurance undertaking;

(ii) where the group contains two or more

insurance undertakings or reinsurance undertakings which

have their head offices in Member States or EEA States,

and such undertakings have the same insurance holding

company or mixed financial holding company as a parent,

and one of such undertakings has been authorised by the

competent authority, and the insurance holding company

or mixed financial holding company has its head office in

Malta;

(iii) where the group is headed by two or more

insurance holding companies or mixed financial holding

companies which have their head offices in different

Member States or EEA States, and there is an insurance

undertaking or reinsurance undertaking in the group in

each of those Member States or EEA States, and the

competent authority has authorised the insurance

undertaking or reinsurance undertaking with the largest

balance sheet total;

(iv) where two or more insurance undertakings or

reinsurance undertakings which have their head offices in

Member States or EEA States, have the same insurance

holding company or mixed financial holding company as

their parent, and none of those undertakings has been

authorised in the Member State or EEA State in which the

insurance holding company or mixed financial holding

company has its head office, and the competent authority

has authorised the insurance undertaking or reinsurance

undertaking with the largest balance sheet total; or

(v) where the group is a group without a parent

undertaking, or in any circumstances not referred to in sub-

paragraphs (i) to (iv), and the competent authority has

authorised the insurance undertaking or reinsurance

undertaking with the largest balance sheet total.

(4) Where another European regulatory authority has been

designated as the group supervisor in accordance with Article 247 of

the Solvency II Directive, the competent authority shall recognise that

supervisory authority as the group supervisor of the group.

(1)

Notwithstanding regulation 35

(a)

the competent authority is the group supervisor of a

group, if all the supervisory authorities concerned take a joint

decision that the competent authority shall be the group

supervisor; and

(b) the competent authority must recognise a joint

decision taken by all the supervisory authorities concerned that

a supervisory authority other than the competent authority shall

be the group supervisor of a group.

(2) The competent authority may request the other supervisory

authorities concerned to consider whether

(a) the criteria specified in Article 247(2) of the

Solvency II Directive are appropriate for determining which

supervisory authority shall be the group supervisor; and

(b) a supervisory authority other than the supervisory

authority satisfying those criteria shall be the group supervisor.

(3) The competent authority may make a request referred to in

sub-regulation (2) not more than once a year.

(4) Where the supervisory authorities responsible for the

supervision of an insurance or reinsurance undertaking are

considering, at the request of the competent authority or of another

supervisory authority, whether the criteria are appropriate or whether

a particular supervisory authority shall be the group supervisor

(a)

the competent authority shall do everything in its

power to reach a joint decision on the request within a period of

three months commencing on the date of the request;

(b) the competent authority shall permit the group

concerned to give its opinion on the request;

(c)

the competent authority may refer the matter to

EIOPA, in accordance with Article 19 of Regulation (EU) No

1094/2010, within a period of three months commencing with

the date of the request;

(d) where the matter is referred to EIOPA, the

competent authority shall take a joint decision in accordance

with any decision taken by EIOPA, and where the competent

authority is designated as group supervisor of a group, the

competent authority shall submit the joint decision to the group

and to the college of supervisors stating the full reasons;

(e)

where the matter is not referred to EIOPA or EIOPA

takes no such decision on such a referral, the competent

authority may take a joint decision with the other European

regulatory authorities that

(i) the criteria referred to in Article 247(2) of the

Solvency II Directive are inappropriate, taking into

account the structure of the group and the relative

importance of the activities of authorised insurance

undertakings, authorised reinsurance undertakings,

European insurance undertakings, and European

reinsurance undertakings, in the different countries; and

(ii) a supervisory authority, other than the

supervisory authority satisfying the criteria, shall be the

group supervisor; and

(f)

where the joint decision designates the competent

authority as the group supervisor of a group, the competent

authority shall submit the joint decision to the group and to the

college of supervisors stating the full reasons.

(5) In the absence of a joint decision referred to in sub-

regulation (4), the task of the group supervisor shall be exercised by

the supervisory authority identified in accordance with Article 247(2)

of the Solvency II Directive.

(1) Where the competent authority is the group Rights and

supervisor of a group, the authority shall, in order to facilitate the duties

group

exercise of the group supervision tasks, carry out the functions supervisor

the other

referred to in article 32B(3) of the Act.

supervisors

(College of

supervisors).

(2) In order to facilitate the exercise of the tasks referred to in

sub-regulation (1), the competent authority shall establish and chair a

college of supervisors comprising

(a)

the competent authority;

(b) the supervisory authorities of the Member States or

EEA States in which the head office of every subsidiary

undertaking in the group is situated; and

(c)

EIOPA.

(3)

The competent authority as group supervisor

(a) shall permit the European regulatory authorities of

significant branches and related undertakings to participate in

the college of supervisors, provided that their participation is

limited to achieving an efficient exchange of information;

(b) shall ensure that the processes for cooperation,

exchange of information and consultation between the

competent authority and the other European regulatory

authorities that are members of the college of supervisors, are

effectively applied in accordance with Articles 212 to 266 of the

Solvency II Directive, with a view to promoting the

convergence of their respective decisions and activities;

(c)

may agree with the other European regulatory

authorities concerned that some activities of the college of

supervisors be carried out by a reduced number of European

regulatory authorities where the effective functioning of the

college of supervisors requires it;

(d) shall, without prejudice to any measure adopted

pursuant to the Solvency II Directive, conclude coordination

arrangements with the other European regulatory authorities for

the establishment and functioning of the college of supervisors.

(4) The coordination arrangements referred to in sub-

regulation (3)(d)

(a)

shall specify the procedures for

(i) the decision-making process among the

supervisory authorities concerned in accordance with

Articles 231, 232 and 247 of the Solvency II Directive;

(ii) consultation under Articles 218(5) and 248(4)

of the Solvency II Directive; and

(b)

may, in addition, set out procedures for

(i) consultation

among

the

supervisory

authorities concerned, in particular as referred to in

Articles 213 to 217, 219 to 221, 227, 244 to 246, 250, 256,

260 and 262 of the Solvency II Directive;

(ii) cooperation

with

other

supervisory

authorities.

(5) Without prejudice to the rights and duties allocated by the

Solvency II Directive, the coordination arrangements may entrust

additional tasks to

(a)

the competent authority

(i)

where it is the group supervisor of a group; or

(ii) where it is one of the authorities responsible

for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group

supervisor; or

(b)

EIOPA,

and, in each case, where this would result in the more efficient

supervision of the group and would not impair the supervisory

activities of the members of the college of supervisors in respect of

their individual responsibilities.

(6) Where diverging views concerning the coordination

arrangements arise

(a) any member of the college of supervisors may refer

the matter to EIOPA and request its assistance in accordance

with Article 19 of Regulation (EU) No 1094/2010; and

(b) where the competent authority is the group

supervisor of a group, the authority shall

(i) where it has received advice from EIOPA,

after consulting the European regulatory authorities

concerned, duly consider any advice produced by EIOPA

within two months of the receipt thereof, before taking its

final decision;

(ii) take its final decision in conformity with

EIOPA’s decision;

(iii) ensure that the decision states the full reasons

and contains an explanation of any significant deviation

from any advice given by EIOPA;

(iv) transmit that decision to the European

regulatory authorities concerned.

(7) The competent authority as group supervisor, shall send

EIOPA any information on the functioning of the college of

supervisors and any difficulties encountered that are relevant for

EIOPA’s reviews of the operational functioning of colleges of

supervisors.

(1) Where an authorised insurance undertaking, an

authorised reinsurance undertaking, a European insurance

undertaking or a European reinsurance undertaking and either a credit

institution as defined in Directive 2013/36/EU of the European

Parliament and of the Council of 26 June 2013 on access to the

activity of credit institutions and the prudential supervision of credit

institutions and investment firms, or an investment firm as defined in

Directive 2004/39/EC, or both, are directly or indirectly related or

have a common participating undertaking, the competent authority or

the European regulatory authorities concerned and the authorities

responsible for the supervision of those credit institutions or

investment firms shall cooperate closely.

(2) Without prejudice to their respective responsibilities, those

authorities referred to in sub-regulation (1) shall provide one another

with any information likely to simplify their task, in particular as set

out in Title III of the Solvency II Directive.

(1) The competent authority shall have access to any

information relevant for the purpose of that supervision regardless of

the nature of the undertaking concerned and Article 35(1) to (5) of the

Solvency II Directive shall apply mutatis mutandis.

(2) Where the competent authority has requested the

information from all the European regulatory authorities in the group,

and none of them has provided such information to the competent

authority, within a reasonable period of time, the authority may

address the undertakings in the group directly to obtain the necessary

information.

(3) Where the competent authority is the group supervisor of a

group, the authority may

(a)

limit regular supervisory reporting with a frequency

shorter than one year at the level of the group where all

authorised insurance undertakings, authorised reinsurance

undertakings, European insurance undertakings and European

reinsurance undertakings within the group, benefit from the

limitation in accordance with Article 35(6) of the Solvency II

Directive taking into account the nature, scale and complexity

of the risks inherent in the business of the group;

(b) exempt from reporting on an item-by-item basis at

the level of the group where all authorised insurance

undertakings, authorised reinsurance undertakings, European

insurance undertakings and European reinsurance undertakings

within the group, benefit from the exemption in accordance with

Article 35(7) of the Solvency II Directive, taking into account

the nature, scale and complexity of the risks inherent in the

business of the group and the objective of financial stability.

(1) A participating insurance and reinsurance Group solvency

undertaking, insurance holding company and a mixed financial and

condition report.

holding company shall disclose publicly, on an annual basis, a report

on the solvency and financial condition at the level of the group, and

Articles 51, 53, 54 and 55 of the Solvency II Directive shall apply

mutatis mutandis.

(2) A participating insurance or reinsurance undertaking, an

insurance holding company or a mixed financial holding company

referred to in sub-regulation (1) may, subject to the agreement of the

group supervisor, provide a single report on its solvency and financial

condition which shall comprise the following

(a) the information at the level of the group to be

disclosed in accordance with sub-regulation (1); and

(b) the information for any of the subsidiaries within the

group, which information must be individually identifiable and

must be disclosed in accordance with Articles 51, 53, 54 and 55

of the Solvency II Directive.

(3) Before an agreement is granted by the group supervisor in

accordance with sub-regulation (2), the competent authority, when

consulted by the group supervisor, may submit its views or make

reservations.

(4) Where a subsidiary undertaking is an authorised insurance

undertaking or authorised reinsurance undertaking, and such

undertaking fails to include information which the competent

authority requires comparable undertakings to provide, and where the

omission is material, the competent authority shall have the power to

require the subsidiary undertaking concerned to disclose the

necessary additional information.

(5) Where the competent authority is the group supervisor of a

group and the authority has received a request from a participating

insurance and reinsurance undertaking, an insurance holding

company or a mixed financial holding company, for such undertaking

or company to be able to provide a single solvency and financial

condition report, the competent authority shall consult and duly take

into account any views and reservations of the other members of the

college of supervisors, before agreeing to the request.

An insurance and reinsurance undertaking, an insurance

holding company and a mixed financial holding company shall

disclose publicly, at the level of the group, on an annual basis, the

legal structure and the governance and organisational structure,

including a description of all subsidiary undertakings, material related

undertakings and significant branches belonging to the group.

The competent authority shall require that all persons who

effectively run the insurance holding company or the mixed financial

holding company whose head office is in Malta, are fit and proper to

perform their duties and Article 18I(2)(a) of the Act shall apply

mutatis mutandis.

(1) Where

authorised

insurance

undertakings,

authorised

reinsurance

undertakings,

European

insurance

undertakings and European reinsurance undertakings in a group, do

not comply with the requirements provided for in Articles 218 to 246

of the Solvency II Directive, or where the requirements are met but

solvency may nevertheless be jeopardised or where the intra-group

transactions or the risk concentrations are a threat to the financial

position of such undertakings, measures necessary to rectify the

situation as soon as possible shall be adopted

(a) where the competent authority is the group

supervisor of a group, by

(i)

the competent authority with respect to

(aa) insurance holding companies

and

mixed financial holding companies; and

(bb) authorised insurance undertakings and

authorised reinsurance undertakings;

(ii) the European regulatory authorities with

respect to European insurance undertakings and European

reinsurance undertakings;

(b) where the competent authority is one of the

authorities responsible for the supervision of an individual

insurance or reinsurance undertaking in a group and is not the

group supervisor, by

(i)

the group supervisor with respect to insurance

holding companies

and

mixed

financial

holding

companies; and

(ii) the competent authority, with respect to

authorised insurance undertakings and authorised

reinsurance undertakings.

(2) Where in the case referred to in sub-regulation (1)(a)(i),

the competent authority is not one of the supervisory authorities of

the Member State in which the insurance holding company or mixed

financial holding company has its head office, the competent

authority shall inform the European regulatory authorities concerned

of its findings with a view to enabling them to take the necessary

measures.

(3) In the case referred to in sub-regulation (1)(a)(ii), the

competent authority shall inform the European regulatory authorities

concerned of its findings with a view to enabling them to take the

necessary measures.

(4) Without prejudice to regulation 49, the competent

authority shall determine the measures which may be taken with

respect to insurance holding companies and mixed financial holding

companies, whose head office is in Malta.

(5) Where the competent authority is the group supervisor of a

group, or where the competent authority is one of the authorities

responsible for the supervision of an individual insurance or

reinsurance undertaking in a group and is not the group supervisor,

the competent authority shall, where appropriate, coordinate any

measures it may take, with the European regulatory authorities

concerned or with the group supervisor, as applicable.

PART IV

Third countries

(1) In the case referred to in regulation 3(2)(c), the Parent

competent authority shall verify whether an authorised insurance undertakings

outside the

undertaking and authorised reinsurance undertaking, the parent Union

verification of

undertaking of which has its head office in a third country is subject equivalence.

to supervision, by an overseas regulatory authority which is

equivalent to that set out in Articles 212 to 266 of the Solvency II

Directive, on the supervision at the level of the group of insurance

and reinsurance undertakings referred to in Article 213(a) and (b) of

the Solvency II Directive.

(2) Where no delegated act has been adopted in accordance

with Articles 260(2), (3) and (5) of the Solvency II Directive, the

verification referred to in sub-regulation (1), shall be carried out by

the competent authority, which would be the group supervisor if the

criteria set out in Article 247(2) of the Solvency II Directive were to

apply (the "acting group supervisor"), at the request of the parent

undertaking or of any of the authorised insurance undertakings,

authorised

reinsurance

undertakings,

European

insurance

undertakings or European reinsurance undertakings, or on its own

initiative.

(3) Where the competent authority, is the acting group

supervisor, the authority

(a)

shall, with the assistance of EIOPA, consult the

supervisory authorities concerned before taking a decision on

equivalence;

(b) shall, where applicable, take a decision on

equivalence in accordance with the criteria set out in any

delegated act adopted by the European Commission pursuant to

Article 260(2) of the Solvency II Directive;

(c)

shall not take any decision in relation to a third

country that is in opposition to any previous decision taken vis-

à-vis that third country, except where it is necessary to take into

account significant changes to the supervisory regime laid down

in Title I of the Solvency II Directive and to the supervisory

regime in the third country; and

(d) shall notify its decision to the supervisory

authorities concerned.

(4) Where the competent authority is not the acting group

supervisor and disagrees with the decision on equivalence taken by

the acting group supervisor in accordance with the third sub-

paragraph of Article 260 of the Solvency II Directive, it may refer the

matter to EIOPA and request its assistance in accordance with Article

19 of Regulation (EU) No 1094/2010, within three months after

notification of that decision by the acting group supervisor.

(5) Where a delegated act determining that the prudential

regime of a third country is temporarily equivalent, is adopted in

accordance with Article 260(5) of the Solvency II Directive, the

competent authority shall apply regulation 45, unless there is an

authorised insurance undertaking, an authorised reinsurance

undertaking, a European insurance undertaking, or a European

reinsurance undertaking, in the group, which has a balance sheet total

that exceeds the balance sheet total of the parent undertaking situated

in a third country. In that case, the task of the group supervisor shall

be exercised by the acting group supervisor.

(1) In the event of equivalent supervision referred to in Parent

Article 260 of the Solvency II Directive, the competent authority shall undertakings

outside the

rely on the equivalent group supervision exercised by the overseas Community

equivalence.

regulatory authorities, in accordance with sub-regulation (2).

(2) Articles 247 to 258 of the Solvency II Directive shall apply

mutatis mutandis in relation to the cooperation with the overseas

regulatory authorities.

(1) Where regulation 3(2)(c) applies, in the absence of Parent

equivalent supervision referred to in Article 260 of the Solvency II undertakings

registered in a

Directive, or where the competent authority as the acting group third

absence of

supervisor does not apply Article 261 of the Solvency II Directive in equivalence.

the event of temporary equivalence in accordance with Article 260(7)

of the Solvency II Directive, the competent authority shall apply

either of the following to authorised insurance undertakings and

authorised reinsurance undertakings

(a) Articles 218 to 235, and Articles 244 to 258 of the

Solvency II Directive, mutatis mutandis; or

(b)

any other method which

(i) ensures appropriate supervision of

the

insurance and reinsurance undertakings in a group;

(ii) allows the objectives of the group supervision

as defined in Title III of the Solvency II Directive to be

achieved.

(2) The general principles and methods set out in Articles 218

to 258 of the Solvency II Directive shall apply at the level of the

insurance holding company, mixed financial holding company, third-

country insurance undertaking or third-country reinsurance

undertaking.

(3) For the sole purpose of the group solvency calculation, the

parent undertaking shall be treated as if it were an insurance or

reinsurance undertaking subject to the same conditions as laid down

in Articles 87 to 99 of the Solvency II Directive as regards the own

funds eligible for the Solvency Capital Requirement, and to either of

the following

(a)

a Solvency Capital Requirement determined in

accordance with the principles of Article 226 of the Solvency II

Directive where the parent undertaking is an insurance holding

company or mixed financial holding company; or

(b) a Solvency Capital Requirement determined in

accordance with the principles of Article 227 of the Solvency II

Directive, where the parent undertaking is a third-country

insurance undertaking or a third-country reinsurance

undertaking.

(4) The reference in sub-regulation (1)(b) to any other method,

may include

(a) requiring the establishment of an insurance holding

company which has its head office in a Member State or EEA

State, or a mixed financial holding company which has its head

office in a Member State or EEA State; and

(b) applying Articles 212 to 266 of the Solvency II

Directive to the insurance and reinsurance undertakings in the

group headed by that insurance holding company or mixed

financial holding company.

(5) Before applying any other method under sub-regulation

(1)(b), the competent authority shall

(a) where it is the group supervisor, consult the other

supervisory authorities concerned in the supervision of the

group;

(b) where it is one of the authorities responsible for the

supervision of an individual insurance or reinsurance

undertaking in a group and is not the group supervisor, agree the

method with the group supervisor.

(6) Where the competent authority is the group supervisor, and

where the competent authority applies any other method under sub-

regulation (1)(b), it shall notify the European Commission and the

other supervisory authorities concerned.

(1) Subject to sub-regulation (2), where the parent

undertaking referred to in regulation 3(2)(c) is itself a subsidiary

undertaking of

(a) an insurance holding company which has its head

office in a third country;

(b)

a mixed financial holding company which has its

head office in a third country;

(c)

a third-country insurance undertaking; or

(d)

a third-country reinsurance undertaking,

the verification provided for in regulation 44 shall apply only at the

level of the ultimate parent undertaking which is a third-country

insurance holding company, a third-country mixed financial holding

company, a third-country insurance undertaking or a third-country

reinsurance undertaking.

(2) The competent authority, as the acting group supervisor,

may, however, in the absence of equivalent supervision referred to in

Article 260 of the Solvency II Directive, carry out a new verification

at a lower level where a parent undertaking of an authorised insurance

undertaking or an authorised reinsurance undertaking exists, whether

at the level of a third-country insurance holding company, a third

country mixed financial holding company, a third-country insurance

undertaking or a third-country reinsurance undertaking.

(3) In such a case referred to in sub-regulation (2), where the

competent authority is the acting group supervisor in accordance with

regulation 44(2), it shall explain its decision to the group.

(4) Article 262 of the Solvency II Directive shall apply mutatis

mutandis.

PART V

Mixed-activity insurance holding companies

(1) In the case referred to in regulation 3(2)(d), where Mixed-activity

the parent undertaking of one or more insurance undertakings or insurance

holding

reinsurance undertakings is a mixed-activity insurance holding companies

Intra-group

company and the competent authority supervises one or more of the transactions.

insurance undertakings or reinsurance undertakings in the group, the

competent authority shall exercise general supervision over

transactions between

(a) the mixed-activity holding company and its related

undertakings; and

(b) the authorised insurance undertakings or authorised

reinsurance undertakings supervised by the competent authority.

(2) Articles 245, 249 to 255 and 258 of the Solvency II

Directive shall apply mutatis mutandis.

PART VI

General provisions

(1) Any insurance holding company and mixed

financial holding company, or any person effectively managing those

companies, who contravenes any of the provisions of these

regulations, applicable to them, shall be liable to an administrative

penalty which may not be greater than a financial penalty of one

hundred and fifty thousand euro (€150,000) in respect of each

infringement or failure to comply, as the case may be, and, where

such infringement or failure to comply continues, a further penalty

not exceeding one hundred and sixteen euro (€116) for each day

during which the infringement or failure to comply continues

Provided further that a penalty imposed under this

regulation, whether in the form of a fixed amount, a daily penalty, or

both, may, in no case, exceed one hundred and fifty thousand euro

(€150,000).

(2) The competent authority shall cooperate closely with the

European regulatory authorities concerned, to ensure that the

sanctions or measures referred to in Article 258(3) of the Solvency II

Directive are effective, in particular where the central administration

or main establishment of an insurance holding company or mixed

financial holding company is not located in Malta.

(1) For the better carrying out of these regulations, the

competent authority may, from time to time, issue Insurance Rules.

(2) Such Insurance Rules may contain such incidental,

supplementary and consequential provisions as appear to the

competent authority to be expedient for the purposes of these

regulations.

(1) The

Insurance

Business

(Supplementary

Supervision of Insurance and Reinsurance Undertakings in an

Insurance Group) Regulations, 2007, hereinafter referred to as "the

revoked regulations", are hereby revoked.

(2) Nothing in these regulations shall be deemed to affect

anything done, or omitted to be done under the revoked regulations,

prior to the coming into force of these regulations.

2007. €2.61