S.L. 403.17 Art. 30Subsidiaries of an insurance or reinsurance undertaking: non- compliance with the Solvency Capital Requirement and Minimum Capital Requirement.

(1) Where the subsidiary undertaking is an authorised insurance undertaking or an authorised reinsurance undertaking, in the event of non-compliance with the Solvency Capital

Requirement and without prejudice to article 16 of the Act, the competent authority shall, without delay, forward to the college of supervisors the recovery plan submitted by the subsidiary undertaking, in order to achieve, within six months from the observation of non-compliance with the Solvency Capital

Requirement, the re-establishment of the level of eligible own funds or the reduction of its risk profile to ensure compliance with the Solvency Capital Requirement.

(2) The college of supervisors shall do everything within its power to reach an agreement on the proposal of the competent authority in accordance with sub-regulation (1), regarding the approval of the recovery plan within four months from the date on which non-compliance with the Solvency Capital Requirement was first observed.

(3) In the absence of an agreement in accordance with sub-regulation (2), the competent authority shall decide whether the recovery plan should be approved, taking due account of the views and reservations of the other European regulatory authorities within the college of supervisors.

(4) Where the subsidiary undertaking is an authorised insurance undertaking or an authorised reinsurance undertaking and the competent authority identifies, in accordance with Article 136 of the Solvency II Directive, deteriorating financial conditions:

(a) it shall notify the college of supervisors without delay of the proposed measures to be taken, provided that, in emergency situations, the measures to be taken shall be discussed within the college of supervisors;

(b) the college of supervisors shall do everything within its power to reach an agreement on the proposed measures to be taken within one month of notification; and

(c) in the absence of such agreement referred to in paragraph (b), the competent authority shall decide whether the proposed measures shall be approved, taking due account of the views and reservations of the other European regulatory authorities within the college of supervisors.

(5) In the event of non-compliance with the Minimum Capital Requirement by a subsidiary undertaking, which is an authorised insurance or reinsurance undertaking and without prejudice to article 18 of the Act, the competent authority shall:

(a) without delay, forward to the college of supervisors the short-term finance scheme submitted to it by the subsidiary undertaking, in order to achieve, within three months from the date on which non-compliance with the Minimum Capital Requirement was first observed, the re-establishment of the level of eligible own funds covering the Minimum Capital Requirement or the reduction of its risk profile to ensure compliance with the Minimum Capital Requirement; and

(b) shall also inform the college of supervisors of any measures taken to enforce the Minimum Capital Requirement at the level of the subsidiary.

(6) The competent authority as one of the authorities responsible for the supervision of an individual insurance or reinsurance undertaking in a group and is not the group supervisor, or the group supervisor, as applicable, may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010 where they disagree regarding either of the following:

(a) on the approval of the recovery plan, including any extension of the recovery period, within the four-month period referred to in sub-regulation (2); or

(b) on the approval of the proposed measures, within the one-month period referred to in sub-regulation (4)(b).

(7) Where the competent authority is the group supervisor of a group, in the circumstances referred to in Article 239 of the Solvency II Directive, when the European regulatory authority having authorised the subsidiary undertaking and the competent authority disagree, any one of them may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010, regarding either of the following:

(a) on the approval of the recovery plan, including any extension of the recovery period, within the four-month period referred to in Article 239(1) of the Solvency II Directive; or

(b) on the approval of the proposed measures, within the one-month period referred to in Article 239 (2) of the Solvency II Directive.

(8) The matter shall not be referred to EIOPA:

(a) after the end of the four-month or the one-month period respectively referred to in sub-regulation (7)(a) and (b);

(b) after an agreement has been reached within the college of supervisors in accordance with Article 239(1) and

(2) of the Solvency II Directive; and

(c) in the case of emergency situations as referred to in Article 239(2) of the Solvency II Directive.

(9) Where the subsidiary undertaking is an authorised insurance undertaking or an authorised reinsurance undertaking the competent authority shall:

(a) defer its decision and await any decision that EIOPA may take in accordance with Article 19(3) of Regulation (EU) No 1094/2010;

(b) take its final decision in conformity with EIOPA’s decision, and state the full reasons on which that decision is based, which decision shall be recognised as determinative and shall be applied by the European regulatory authorities concerned; and

(c) submit the decision referred to in paragraph (b) to the subsidiary undertaking and to the college of supervisors.