Prudential Regulation Authority Rulebook

3.1

A third country branch undertaking (except a UK-deposit insurer, an EEA-deposit insurer and a third country branch undertaking that has a third country pure reinsurance branch) must hold assets required to cover the branch SCR as follows:

1. (1) in the UK, assets representing the branch SCR up to the amount of the branch MCR; and
2. (2) in any EEA State, assets representing the amount of the branch SCR in excess of the amount of the branch MCR.

3.2

A UK-deposit insurer must hold assets required to cover the EEA SCR as follows:

1. (1) in any of the EEA States where the UK-deposit insurer pursues its activities, assets representing the EEA SCR up to the amount of the EEA MCR; and
2. (2) in any EEA State, assets representing the amount of the EEA SCR in excess of the amount of the EEA MCR.

3.3

A third country branch undertaking (except an EEA-deposit insurer and a third country branch undertaking that has a third country pure reinsurance branch) must hold on deposit as security in the UK with a CRD credit institution assets of an amount equal to at least one quarter of the absolute floor of the MCR set out in Minimum Capital Requirement 3.2.

[Note: Art. 162(2), Art. 166(4), Art. 167(1) and (2) of the Solvency II Directive]