S.L. 403.17 Art. 20Related credit institutions, investment firms and financial institutions.

When calculating the group solvency of an authorised insurance undertaking or an authorised reinsurance undertaking, which is a participating undertaking in a credit institution, investment firm or financial institution, the participating insurance and reinsurance undertaking shall:

(a) apply methods 1 or 2 set out in Annex I to Directive 2002/87/EC provided that, method 1 mutatis mutandis, set out in that Annex shall be applied only where the group supervisor or where the competent authority is the group supervisor of a group, the competent authority, as applicable, is satisfied as to the level of integrated management and internal control regarding the undertakings which would be included in the scope of consolidation, and provided always that the method chosen shall be applied in a consistent manner over time; or

(b) deduct any participation as referred to in paragraph (a) from the own funds eligible for the group solvency of the participating undertaking, where the group supervisor or the competent authority as group supervisor so decides, either at the request of the participating undertaking or on its own initiative.