S.L. 403.17 Art. 24Group capital add- on.

(1) Where the competent authority is the group supervisor of a group, the authority shall, in determining whether the consolidated group Solvency Capital Requirement appropriately reflects the risk profile of the group, pay attention to any case where the circumstances referred to in Article 37(1)(a) to (d) of the Solvency II Directive may arise at group level, in particular where:

(a) a specific risk existing at group level would not be sufficiently covered by the standard formula or the internal model used, because it is difficult to quantify;

(b) a capital add-on to the Solvency Capital Requirement of the related insurance or reinsurance undertakings is imposed by the European regulatory authorities concerned, in accordance with Article 37 and Article 231(7) of the Solvency II Directive.

(2) Where the competent authority is the group supervisor of a group, the authority may, where the risk profile of the group is not adequately reflected, impose a capital add-on to the consolidated group Solvency Capital Requirement.

(3) Article 37(1) to (5) of the Solvency II Directive, together with the delegated acts and implementing technical standards taken in accordance with Article 37(6), (7) and (8) of the Solvency II Directive, shall apply mutatis mutandis.