Close menu

Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) every UK Solvency II firm:
    1. (a) that is a member of a group for which the PRA is the group supervisor;
    2. (b) that is a member of a group for which a supervisory authority (other than the PRA) is the group supervisor, subject to (c) and to the extent this Part gives effect to the Solvency II EEA implementing measures in the EEA State of its group supervisor; and
    3. (c) where the group supervisor of a group of which a firm is a member is a supervisory authority in an EEA State other than the UK, the requirements of the Solvency II EEA implementing measures in that EEA State apply to the firm in relation to its capacity as a member of that group;
  2. (2) in accordance with Insurance General Application 3, the Society as a mixed activity insurance holding company, as modified by 21; and
  3. (3) a UK holding company.

4.1

01/01/2016

Where 2.1(1) applies, each participating Solvency II undertaking that is a firm in the group and each relevant insurance group undertaking must ensure that eligible own funds are available in the group which are always at least equal to the group SCR as calculated in accordance with 7 to 12.

Additional Notes


[Note: Art. 218(2) of the Solvency II Directive]

4.2

01/01/2016

Where 2.1(2) applies, each relevant insurance group undertaking must ensure that eligible own funds are available in the group which are always at least equal to the group SCR as calculated in accordance with 14.

Additional Notes


[Note: Art. 218(3) of the Solvency II Directive]

4.3

01/01/2016

Relevant insurance group undertakings must have procedures in place to identify deteriorating financial conditions within the groups of which they are members and must immediately notify the group supervisor when that deterioration occurs.

Additional Notes


[Note: Art. 218(4) and Art. 136 of the Solvency II Directive]

4.4

01/01/2016

Relevant insurance group undertakings must:

  1. (1) immediately inform the PRA as soon as they observe that the group SCR is no longer complied with, or where there is a risk of non-compliance within the next three months;
  2. (2) within two months from the observation of non-compliance with the group SCR, submit a realistic recovery plan in accordance with Undertakings In Difficulty 5.1 for approval by the PRA;
  3. (3) take the measures necessary to achieve, within six months (or such longer period as the PRA may determine) from the observation of non-compliance with the group SCR, the re-establishment of the level of eligible own funds covering the group SCR or the reduction of the risk profile to ensure compliance with the group SCR; and
  4. (4) if the PRA has extended the period referred to (3) by reason of the declaration by EIOPA of an exceptional adverse situation affecting the group, submit a progress report to the PRA every three months setting out the measures taken and the progress made to re-establish the level of own funds covering the group SCR or to reduce the risk profile to ensure compliance with the group SCR.

Additional Notes


[Note: Art. 218(4) and Art. 138(1)–(4) of the Solvency II Directive]