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Term Definition Legal instruments

mutual-type group

31/12/2020

The changes to this defined term are effective from 23:00 on 31/12/2020.

means a group of undertakings that is based on the establishment, contractually or otherwise, of strong and sustainable financial relationships among those undertakings, and that may include mutual or mutual-type associations, provided that:

(1) one of those undertakings effectively exercises, through centralised coordination, a dominant influence over the decisions, including financial decisions, of the other undertakings that are part of the group of undertakings; and

(2) the establishment and dissolution of such relationships are subject to prior approval by the PRA,

where the undertaking exercising the centralised coordination shall be considered as the parent undertaking, and the other undertakings shall be considered as subsidiary undertakings.

Additional Notes

[Note: Art. 212(1)(c)(ii) of the Solvency II Directive]