Prudential Regulation Authority Rulebook

15.1

15.3 applies to any Solvency II undertaking in a group which is a subsidiary undertaking of another Solvency II undertaking or of an insurance holding company or mixed financial holding company where all of the following conditions are satisfied:

1. (1) the subsidiary undertaking, in relation to which the group supervisor has not made a decision under Article 214(2) of the Solvency II Directive, is included in the group supervision carried out by the group supervisor at the level of the parent undertaking in accordance with this Part;
   
   
2. (2) the risk-management processes and internal control mechanisms of the parent undertaking cover the subsidiary undertaking and the parent undertaking satisfies the PRA regarding the prudent management of the subsidiary undertaking;
   
   
3. (3) (a) the parent undertaking; or
   
   (b) one or more relevant insurance group undertakings,
   
   is permitted, under 17.2(3), to produce a single document covering all relevant ORSAs;
   
   
4. (4) (a) the parent undertaking; or
   
   (b) one or more relevant insurance group undertaking,
   
   is permitted, under 18.1(2), to produce a single SFCR covering all relevant Solvency II undertakings and insurance holding companies and mixed financial holding company; and
   
   
5. (5) an application for permission to be subject to 15.3 has been submitted by the parent undertaking or one or more relevant insurance group undertakings and a favourable decision has been made on that application in accordance with the procedure in Article 237 of the Solvency II Directive.

[Note: Art. 236 of the Solvency II Directive]

15.2

An application for permission to be subject to 15.3 must be made to the PRA if the subsidiary undertaking is a UK Solvency II firm.

[Note: Art. 237(1) of the Solvency II Directive]

15.3

Without prejudice to 11.4 and subject to 15.4, if the conditions referred to in 15.1 are satisfied, the SCR of the subsidiary undertaking in the group must be calculated in accordance with any decisions taken in accordance with Article 238 of the Solvency II Directive.

[Note: Art. 238 of the Solvency II Directive]

15.4

1. (1) 15.3 ceases to apply where:
1. (a) the condition referred to in 15.1(1) is no longer complied with;
2. (b) the condition referred to in 15.1(2) is no longer complied with and the group does not restore compliance with this condition in an appropriate period of time;
3. (c) the conditions referred to in 15.1(3) and 15.1(4) are no longer complied with.
2. (2) The parent undertaking or relevant insurance group undertakings of a group to which 15.3 applies must ensure that the conditions referred to in 15.1(2) to (4) are complied with on an ongoing basis and in the event of non-compliance must:
1. (a) inform the group supervisor and the supervisory authority of the subsidiary undertaking concerned without delay; and
2. (b) present a plan to the supervisory authorities to restore compliance within an appropriate period of time.

[Note: Art. 240 of the Solvency II Directive]