S.L. 403.23 Art. 12Transitional measuresonequity risk sub-module.

(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 for equities that an authorised insurance undertaking or an authorised reinsurance undertaking purchased on or before 1 January 2016, when calculating the equity risk sub-module in accordance with the standard formula shall be calculated as the weighted averages of:

(a) the standard parameter to be used when calculating the equity risk sub-module in accordance with sub-regulation (3);

(b) the standard parameter to be used when calculating the equity risk sub-module in accordance with the standard formula.

(2) The weight for the parameter expressed in sub-regulation (1)(b) shall increase at least linearly at the end of each year from 0% during 2016 up to 100% on 1 January 2023.

(3) The equity risk sub-module, for the purposes of sub-regulation (1)(a) shall be calibrated using a Value-at-Risk measure, over a time period, which is consistent with the typical holding period of equity investments for the undertaking concerned, with a confidence level providing the policyholders and beneficiaries with a level of protection equivalent to that set out in Article 101 of the Solvency II Directive.