S.L. 403.23 Art. 11Transitional measures on concentration risk sub-module and the spread risk sub- module. S.L.403.17

(1) Notwithstanding the Solvency Capital Requirement in accordance with Articles 100, 101(3) and 104 of the Solvency II

Directive, the standard parameters to be used when calculating the concentration risk sub-module and the spread risk sub-module in accordance with the standard formula shall be adjusted as follows:

(a) until the 31 December 2017, the standard parameters shall be the same in relation to exposures to Member States’ or EEA States’ central governments or central banks denominated and funded in the domestic currency of any Member State or EEA State as the ones that would be applied to such exposures denominated and funded in their domestic currency;

(b) from 1 January 2018, the standard parameters shall be reduced by 80% in relation to exposures to Member States’ or EEA States’ central governments or central banks denominated and funded in the domestic currency of any other Member State or EEA State;

(c) from 1 January 2019, the standard parameters shall be reduced by 50% in relation to exposures to Member States’ or EEA States’ central governments or central banks denominated and funded in the domestic currency of any other Member State or EEA State;

(d) from 1 January 2020, the standard parameters shall not be reduced in relation to exposures to Member States’ or EEA States’ central governments or central banks denominated and funded in the domestic currency of any other Member State or EEA State.

(2) Notwithstanding sub-regulations (2) and (3) of regulation 9 of the Insurance Business (Supervision of Insurance and Reinsurance Undertakings in a Group) Regulations, where an authorised insurance or reinsurance undertaking is subject to group supervision, the transitional measure referred to in sub-regulation

(1) shall apply mutatis mutandis at the level of the group.