Prudential Regulation Authority Rulebook

17.1

1. (1) Where 2.1(1) or 2.1(2) applies, the following requirements apply with any necessary changes at the level of the group:
1. (a) Conditions Governing Business 2.2 to 2.6;
2. (b) Conditions Governing Business 3;
3. (c) Conditions Governing Business 4.1 to 4.2;
4. (d) Conditions Governing Business 5;
5. (e) Conditions Governing Business 6;
6. (f) Conditions Governing Business 7.1 to 7.3
7. (g) Fitness and Propriety 2.1 to 2.3, 4.1, 4.3 and 4.4;
8. (h) Allocation of Responsibilities 4; and
9. (i) Key Function Holder – Notifications 2 to 6, in accordance with 17.4.
2. (2) Without prejudice to (1), the risk management and internal control systems and reporting procedures must be implemented consistently in all the undertakings included in the scope of group supervision under 2.2(1) and 2.2(2) so that those systems and reporting procedures can be controlled at the level of the group.
3. (3) Without prejudice to (1), the internal control mechanisms must include at least the following:
1. (a) adequate mechanisms as regards group solvency to identify and measure all material risks incurred and to appropriately relate eligible own funds to risks; and
2. (b) sound reporting and accounting procedures to monitor and manage the intra-group transactions and the risk concentration.

17.2

1. (1) Where 2.1(1) or 2.1(2) applies, a participating Solvency II undertaking that is a firm, or if there is none, the UK holding company or the relevant insurance group undertakings, must undertake at the level of the group the assessment required by Conditions Governing Business 3.8 to 3.11.
2. (2) Where the calculation of the solvency at the level of the group is carried out in accordance with method 1, the participating Solvency II undertaking, the UK holding company or the relevant insurance group undertakings (as appropriate) must provide to the group supervisor a proper understanding of the difference between the sum of the SCR of all the related Solvency II undertakings in the group and the consolidated SCR of the group.
3. (3) Where the participating Solvency II undertaking, the UK holding company or the relevant insurance group undertakings (as appropriate) so decide, and subject to the agreement of the group supervisor, they may undertake any assessments required by Conditions Governing Business 3.8 to 3.11 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.
4. (4) Where the group exercises the option provided in (3), it must submit the document to all supervisory authorities concerned at the same time.
5. (5) The exercise of the option provided in (3) does not exempt the subsidiary undertakings concerned from the obligation to ensure that the requirements of Conditions Governing Business 3.8 to 3.11 are met.

[Note: Art. 246(1) to (4) of the Solvency II Directive]

17.3

Reporting 2.1 to 2.4 apply with any necessary changes.

[Note: Art. 254(2) of the Solvency II Directive]

17.4

[Deleted.]