S.L. 403.17 Art. 19Equivalence concerning related third-country insurance and re- insurance undertakings.

(1) When calculating the group solvency of an authorised insurance undertaking or an authorised reinsurance undertaking which is a participating undertaking in a third-country insurance undertaking or third-country reinsurance undertaking, in accordance with method 2, such third-country insurance or reinsurance undertaking shall, solely for the purposes of that calculation, be treated as a related insurance or reinsurance undertaking.

(2) Notwithstanding sub-regulation (1), where the third country in which that undertaking has its head office is subject to authorisation and has a solvency regime at least equivalent to that specified in Articles 75 to 135 of the Solvency II Directive, the competent authority may provide that the calculation in sub-regulation (1) shall take into account, as regards that undertaking, the Solvency Capital Requirement and the own funds eligible to satisfy that requirement as laid down by the third country concerned.

(3) Where the competent authority is the group supervisor of a group and no delegated act has been adopted in accordance with Article 227(4) or (5) of the Solvency II Directive, the competent authority shall at the request of the participating undertaking, or on its own initiative, make the verification of whether the third country solvency regime is at least equivalent to Articles 75 to 135 of the Solvency II Directive.

(4) Where the competent authority is the group supervisor of a group, the authority shall:

(a) consult the other European regulatory authorities concerned in the supervision of the group before taking a decision on equivalence under sub-regulation (3), with the assistance of EIOPA in accordance with Article 33(2) of Regulation (EU) No 1094/2010;

(b) take the decision on equivalence in accordance with the criteria set out in any delegated acts adopted under Article 227(3) of the Solvency II Directive; and

(c) ensure that its decision in relation to a third country is not contradicting any decision taken vis-à-vis that third country previously, except where it is necessary to take into account significant changes to the supervisory regime laid down in Articles 75 to 135 of the Solvency II Directive and to the supervisory regime in the third country.

(5) Where the competent authority is one of the authorities responsible for the supervision of an individual insurance or reinsurance undertaking in a group and is not the group supervisor, and disagrees with the decision taken in accordance with sub-paragraph (2) of Article 227(2) of the Solvency II Directive, the competent authority may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010 within three months after notification of the decision by the group supervisor.

(6) Where the European Commission adopts delegated acts in accordance with Article 227(5) of the Solvency II Directive, determining the provisional equivalence of the supervisory regime of a third country, that regime shall be considered equivalent for the purposes of sub-regulation (2), and sub-regulations (3) to (5) shall not apply.