Prudential Regulation Authority Rulebook

9.1

Where Group Supervision 2.1(1) or 2.1(2) applies, the following provisions apply (notwithstanding Group Supervision 4.1 to 4.2) with any necessary changes at the level of the group:

1. (1) 4.1 to 4.2;
2. (2) 5.1;
3. (3) 8.1; and
4. (4) 11 to 13.

[Note: Art. 308b (17) of the Solvency II Directive]

9.2

Where Group Supervision 2.1(1) or (2) applies, if a participating Solvency II undertaking that is a firm or any relevant insurance group undertaking complies with the pre-Solvency II GCRR but during 2016 does not comply with the group SCR:

1. (1) Group Supervision 4.4 shall not apply;
2. (2) the relevant insurance group undertakings must take the measures necessary to achieve the 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 by 31 December 2017; and
3. (3) the relevant insurance group undertakings must, every three months submit a progress report to the PRA setting out the measures taken and the progress made to establish the level of eligible own funds covering the group SCR or to reduce the risk profile to ensure compliance with the group SCR.

9.3

9.2 shall cease to apply where a progress report submitted in accordance with 9.2(3) shows that there was no significant progress in achieving the 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 between the date of the observation of non-compliance with the group SCR and the date of the submission of the progress report.

[Note: Art. 308b (17) of the Solvency II Directive]