S.L. 403.17 Art. 5Levels at which supervision need not be exercised in relation to risk concentration or intra-group transactions, or both.

Where the competent authority is the group supervisor of a group, it may, after consultation with other European regulatory authorities concerned, decide not to carry out supervision of the risk concentration, intra-group transactions, or both, as referred to in regulation 33, only in the following cases:

(a) in the cases referred to in regulation 3(2)(a) and (b), where the participating insurance or reinsurance undertaking or the insurance holding company or mixed financial holding company which has its head office in Malta, or in another Member State or EEA State, is either a related undertaking of, or is itself a regulated entity or a mixed financial holding company which is subject to supplementary supervision in accordance with Article 5(2) of Directive 2002/87/EC, at the level of that participating insurance or reinsurance undertaking or that insurance holding company or mixed financial holding company;

(b) where the ultimate parent insurance or reinsurance undertaking or insurance holding company or mixed financial holding company which has its head office in Malta, or in another Member State or EEA State, as referred to in regulation 7, is a subsidiary undertaking of an undertaking which is subject to supplementary supervision in accordance with Article 5(2) of Directive 2002/87/EC, at the level of that ultimate parent undertaking or company.