S.L. 403.23 Art. 17Phasing-in plan on transitional measures on risk free interest rates and technical provisions.

(1) An authorised insurance undertaking and an authorised reinsurance undertaking which has obtained the approval of the competent authority to apply the transitional measures in regulation

15 or 16 shall:

(a) immediately inform the competent authority as soon as such undertaking observes that it would not comply with the Solvency Capital Requirement without the application of these transitional measures;

(b) take the measures necessary to ensure compliance with the Solvency Capital Requirement by 1 January 2032; and

(c) within two months from the observation of non-compliance with the Solvency Capital Requirement without the application of these transitional measures, submit a phasing-in plan to the competent authority.

(2) The phasing-in plan which an authorised insurance undertaking and an authorised reinsurance undertaking is required to submit for the purposes of sub-regulation (1)(c) shall set out the planned measures to establish the level of eligible own funds covering the Solvency Capital Requirement or to reduce its risk profile to ensure compliance with the Solvency Capital Requirement by 1 January 2032.

(3) Where an authorised insurance undertaking and an authorised reinsurance undertaking updates its phasing-in plan during the transitional period, it shall submit the updated phasing-in plan to the competent authority.

(4) An authorised insurance undertaking and an authorised reinsurance undertaking which has obtained the approval of the competent authority to apply the transitional measures in regulation 15 or 16 and has informed the competent authority that it would not comply with the Solvency Capital Requirement without the application of these transitional measures, shall submit annually a report to the competent authority setting out the measures taken and the progress made to ensure compliance with the Solvency Capital Requirement by 1 January 2032.

(5) The competent authority shall revoke the approval for the application of the transitional measure obtained pursuant to regulations 15 or 16 where the progress report shows that the compliance with the Solvency Capital Requirement by 1 January 2032 is unrealistic.