S.L. 403.17 Art. 31Subsidiaries of an insurance or reinsurance undertaking:endof derogations for a subsidiary.

(1) Regulations 29 and 30 shall no longer be applicable where:

(a) the condition referred to in Article 236(a) of the

Solvency II Directive is no longer complied with;

(b) the condition referred to in Article 236(b) of the Solvency II Directive is no longer complied with and the group does not restore compliance with this condition in an appropriate period of time; or

(c) the conditions referred to in Article 236(c) and (d) of the Solvency II Directive are no longer complied with.

(2) In the case referred to in sub-regulation (1)(a), where the competent authority is the group supervisor of a group, and it decides, after consulting the college of supervisors, to no longer include the subsidiary undertaking in the group supervision it carries out, it shall immediately inform the European regulatory authority concerned and the parent undertaking.

(3) For the purposes of Article 236(b), (c) and (d) of the Solvency II Directive, the parent undertaking shall:

(a) be responsible for ensuring that the conditions are complied with on an ongoing basis;

(b) in the event of non-compliance, it shall inform, without delay, the competent authority, where the authority is the group supervisor of a group, and the European regulatory authority of the subsidiary undertaking concerned; and

(c) present a plan to restore compliance within an appropriate period of time to the competent authority, where the authority is the group supervisor of a group, and to the European regulatory authority of the subsidiary undertaking concerned.

(4) Without prejudice to sub-regulation (3), where the competent authority is the group supervisor of a group, the authority shall:

(a) verify at least annually, on its own initiative, that the conditions referred to in regulation 27(2)(b), (c) and

(d) continue to be complied with; and

(b) also perform such verification upon request from the European regulatory authority concerned, where the latter has significant concerns related to the ongoing compliance with those conditions.

(5) Where the verification performed identifies weaknesses, and where the competent authority is the group supervisor of a group, the authority shall require the parent undertaking to present a plan to restore compliance within an appropriate period of time.

(6) Where the competent authority is the group supervisor of a group, and after consulting the college of supervisors, the authority determines that the plan referred to in sub-regulations (3)(b) or (5), is insufficient or subsequently that it is not being implemented within the agreed period of time, the competent authority shall conclude that the conditions referred to in regulation 27(2) are no longer being complied with and it shall immediately inform the European regulatory authority concerned.

(7) Where the parent undertaking submits a new application and obtains a favourable decision in accordance with the procedure set out in regulation 27, the provisions of regulations 29 and 30 shall apply again.