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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.

15.1

01/01/2016

15.3 applies to any Solvency II undertaking in a group which is a subsidiary undertaking of another Solvency II undertaking or of an insurance holding company or mixed financial holding company where all of the following conditions are satisfied:

  1. (1) 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 this Part;

  2. (2) the risk-management processes and internal control mechanisms of the parent undertaking cover the subsidiary undertaking and the parent undertaking satisfies the PRA regarding the prudent management of the subsidiary undertaking;

  3. (3) (a) the parent undertaking; or

    (b) one or more relevant insurance group undertakings,

    is permitted, under 17.2(3), to produce a single document covering all relevant ORSAs;

  4. (4) (a) the parent undertaking; or

    (b) one or more relevant insurance group undertaking,

    is permitted, under 18.1(2), to produce a single SFCR covering all relevant Solvency II undertakings and insurance holding companies and mixed financial holding company; and

  5. (5) an application for permission to be subject to 15.3 has been submitted by the parent undertaking or one or more relevant insurance group undertakings and a favourable decision has been made on that application in accordance with the procedure in Article 237 of the Solvency II Directive.

Additional Notes


[Note: Art. 236 of the Solvency II Directive]

15.2

01/01/2016

An application for permission to be subject to 15.3 must be made to the PRA if the subsidiary undertaking is a UK Solvency II firm.

Additional Notes


[Note: Art. 237(1) of the Solvency II Directive]

15.3

01/01/2016

Without prejudice to 11.4 and subject to 15.4, if the conditions referred to in 15.1 are satisfied, the SCR of the subsidiary undertaking in the group must be calculated in accordance with any decisions taken in accordance with Article 238 of the Solvency II Directive.

Additional Notes


[Note: Art. 238 of the Solvency II Directive]

15.4

01/01/2016

  1. (1) 15.3 ceases to apply where:
    1. (a) the condition referred to in 15.1(1) is no longer complied with;
    2. (b) the condition referred to in 15.1(2) is no longer complied with and the group does not restore compliance with this condition in an appropriate period of time;
    3. (c) the conditions referred to in 15.1(3) and 15.1(4) are no longer complied with.
  2. (2) The parent undertaking or relevant insurance group undertakings of a group to which 15.3 applies must ensure that the conditions referred to in 15.1(2) to (4) are complied with on an ongoing basis and in the event of non-compliance must:
    1. (a) inform the group supervisor and the supervisory authority of the subsidiary undertaking concerned without delay; and
    2. (b) present a plan to the supervisory authorities to restore compliance within an appropriate period of time.

Additional Notes


[Note: Art. 240 of the Solvency II Directive]