S.L. 403.17 Art. 27Subsidiaries of an insurance or reinsurance undertaking: conditions.

(1) 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 an authorised insurance undertaking or an authorised reinsurance undertaking is the subsidiary undertaking of an authorised insurance undertaking, an authorised reinsurance undertaking, a European insurance undertaking or a European reinsurance undertaking, Articles 238 and 239 of the Solvency II Directive shall apply, where all of the following conditions are satisfied:

(a) the subsidiary undertaking, in relation to which the group supervisor, has not made a decision under Article 214(2) of the Solvency II Directive is included in the group supervision carried out by the group supervisor at the level of the parent undertaking in accordance with Articles 212 to 266 of the Solvency II Directive;

(b) the risk-management processes and internal control mechanisms of the parent undertaking cover the subsidiary undertaking and the parent undertaking satisfies the competent authority regarding the prudent management of the subsidiary;

(c) the parent undertaking has received the agreement referred to in Article 246(4) of the Solvency II Directive;

(d) the parent undertaking has received the agreement referred to in Article 256(2) of the Solvency II Directive;

(e) an application for permission to be subject to Articles 238 and 239 of the Solvency II Directive has been submitted by the parent undertaking and a favourable decision has been made on such application in accordance with the procedure set out in Article 237 of the Solvency II Directive.

(2) Where the competent authority is the group supervisor of a group, and an authorised insurance undertaking or an authorised reinsurance undertaking, a European insurance undertaking or a European reinsurance undertaking is the subsidiary undertaking of an authorised insurance undertaking, an authorised reinsurance undertaking, a European insurance undertaking or a European reinsurance undertaking, Articles 238 and 239 of the Solvency II Directive shall apply, where all of the following conditions are satisfied:

(a) the subsidiary undertaking, in relation to which the competent authority has not made a decision under Article 214(2) of the Solvency II Directive, is included in the group supervision carried out by the group supervisor at the level of the parent undertaking in accordance with these regulations;

(b) the risk-management processes and internal control mechanisms of the parent undertaking cover the subsidiary undertaking and the parent undertaking satisfies the other responsible authorities in the group regarding the prudent management of the subsidiary;

(c) the parent undertaking has received the agreement referred to in Article 246(4) of the Solvency II Directive;

(d) the parent undertaking has received the agreement referred to in Article 256(2) of the Solvency II Directive;

(e) an application for permission to be subject to Articles 238 and 239 of the Solvency II Directive has been submitted by the parent undertaking and a favourable decision has been made on such application in accordance with the procedure set out in Article 237 of the Solvency II Directive.