S.L. 403.17 Art. 46Parent undertakings registeredinathird country:absenceof equivalence.

(1) Where regulation 3(2)(c) applies, in the absence of equivalent supervision referred to in Article 260 of the Solvency II

Directive, or where the competent authority as the acting group supervisor does not apply Article 261 of the Solvency II Directive in the event of temporary equivalence in accordance with Article 260(7) of the Solvency II Directive, the competent authority shall apply either of the following to authorised insurance undertakings and authorised reinsurance undertakings:

(a) Articles 218 to 235, and Articles 244 to 258 of the Solvency II Directive, or mutatis mutandis;

(b) any other method which:

(i) ensures appropriate supervision of the insurance and reinsurance undertakings in a group;

(ii) allows the objectives of the group supervision as defined in Title III of the Solvency II Directive to be achieved.

(2) The general principles and methods set out in Articles 218 to 258 of the Solvency II Directive shall apply at the level of the insurance holding company, mixed financial holding company, third-country insurance undertaking or third-country reinsurance undertaking.

(3) For the sole purpose of the group solvency calculation, the parent undertaking shall be treated as if it were an insurance or reinsurance undertaking subject to the same conditions as laid down in Articles 87 to 99 of the Solvency II Directive as regards the own funds eligible for the Solvency Capital Requirement, and to either of the following:

(a) a Solvency Capital Requirement determined in accordance with the principles of Article 226 of the Solvency II Directive where the parent undertaking is an insurance holding company or mixed financial holding company; or

(b) a Solvency Capital Requirement determined in accordance with the principles of Article 227 of the Solvency II Directive, where the parent undertaking is a third-country insurance undertaking or a third-country reinsurance undertaking.

(4) The reference in sub-regulation (1)(b) to any other method, may include:

(a) requiring the establishment of an insurance holding company which has its head office in a Member State or EEA State, or a mixed financial holding company which has its head office in a Member State or EEA State; and

(b) applying Articles 212 to 266 of the Solvency II Directive to the insurance and reinsurance undertakings in the group headed by that insurance holding company or mixed financial holding company.

(5) Before applying any other method under sub-regulation (1)(b), the competent authority shall:

(a) where it is the group supervisor, consult the other supervisory authorities concerned in the supervision of the group;

(b) where it 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, agree the method with the group supervisor.

(6) Where the competent authority is the group supervisor, and where the competent authority applies any other method under sub-regulation (1)(b), it shall notify the European Commission and the other supervisory authorities concerned.