Financial Services And Markets PART 1 Citation, commencement and interpretation Citation and commencement 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interpretation 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 2 Supervision Exercise of PRA and FCA functions 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Review of capital add-ons 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-compliance with solvency capital requirement and exceptional adverse situations 4A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty to publish technical information 4B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers in relation to Gibraltar undertakings 4C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedure on the exercise of powers under regulation 4C 4D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Passporting: notification of home state regulator 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EIOPA: information 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EIOPA and EBA: notifications 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other EEA States: information 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Non-compliance with the minimum capital requirement: provision of information to other supervisory authorities 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 3 Groups CHAPTER 1 Cases of application and scope Risk concentration and intra-group transactions 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Equivalent provisions 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exclusion of undertaking from group supervision 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 2 Levels Supervision of parents and subgroups at national level: substantive powers 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervision of parents and subgroups at national level: procedure 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 3 Group Solvency Supervision of group solvency and frequency of calculation 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Choice of method 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inclusion of proportional share 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Related undertakings: calculation of group solvency 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Participating undertakings: calculation of group solvency 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gibraltar undertakings: calculation of group solvency 19A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Internal models and capital add-ons 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiaries: solvency capital requirement 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiaries: non-compliance with the solvency and minimum capital requirements 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiaries: revocation of approval for applying Articles 238 and 239 of the Solvency 2 Directive 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 4 Risk concentration and intra-group transactions Supervision of risk concentration and intra-group transactions 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 5 Risk management and internal control Supervision of system of governance 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 6 Measures to facilitate group supervision Rule for deciding the group supervisor 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exceptions to the rule for deciding the group supervisor 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duties of group supervisor ... 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cooperation and exchange of information between supervisory authorities 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Consultation between supervisory authorities 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to information 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Verification of information 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Group solvency and financial condition report 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement measures 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 7 Third countries Non-EEA solvency 2 parent undertakings: equivalence 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Parent undertaking outside the United Kingdom: absence of equivalence 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Parent undertakings outside the United Kingdom: levels 36A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 8 Mixed-activity insurance holding companies Intra-group transactions 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 4 Approvals CHAPTER 1 Procedure: applications Meaning of “approval”, “group application” and “protected item” 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Applications: eligibility, process, information and documents 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Additional process: applications from groups and applications to more than one supervisory authority 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 2 Specific Approvals Verification that the Solvency 2 Directive does not apply 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matching adjustment 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Volatility adjustment 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supervisory approval of ancillary own-funds 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eligible own funds for an intermediate insurance holding company 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Classification of funds 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Basic Solvency Capital Requirement 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Models 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Group applications 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Third-country insurance undertakings: approval of supervision in more than one EEA State 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Withdrawal of authorisation for third-country insurance undertakings authorised in more than one EEA State 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsidiaries: application of Articles 238 and 239 of the Solvency 2 Directive 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional measures on risk-free interest rates 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional measures on technical provisions 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 3 Procedure: decisions, appeals and notices Decisions: written notices 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeals 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of written notices 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER 4 Rule waivers Modification or waiver of rules 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PART 5 Amendments Amendments 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .