8
Group solvency (Guidelines 1–27)
8.1
These Guidelines are aimed at clarifying the Directive requirements on the calculation of group solvency, including the scope of group supervision, the level(s) at which groups are supervised and the approach to calculating group solvency.
- 23/07/2015
8.2
The PRA has additional commentary in respect of the following Guidelines on the scope of group supervision and the level of which groups are supervised (Guidelines 1–6).
- 23/07/2015
8.3
Firms are responsible for providing guidance to related undertakings and ensuring the accuracy and completeness of information from related undertakings. Where the ultimate parent is not an authorised firm, the parent entity should nonetheless take responsibility for these matters. If necessary, the PRA will use its power of direction over the ultimate parent to ensure that this occurs.
- 23/07/2015
Parent insurance or reinsurance undertaking, insurance holding company or mixed financial holding company headquartered in a third country (Guideline 5)
8.4
Guideline 5 states that supervisory authorities do not need to apply group supervision at the ultimate level of the European Economic Area (EEA). Instead, they can apply group supervision solely at the level of the ultimate parent located in a third country, if that country operates a regime deemed equivalent to Solvency II, where this would result in a more efficient supervision of the group. The PRA has transposed the Directive to apply the requirements necessary for it to exercise group supervision at the ultimate EEA level, although the PRA may grant waivers. If, therefore, a firm considers that it would be appropriate for group supervision to be exercised solely at the level of the ultimate third-country parent, it should apply for a modification of the relevant PRA rules in accordance with Section 138A of FSMA.
- 23/07/2015