Duties of group supervisor and establishment of college of supervisorsU.K.
This section has no associated Explanatory Memorandum
28.—(1) Paragraphs (2) to (7) apply where the PRA is the group supervisor of a group, and paragraph (8) applies where the PRA is a member of a college of supervisors for a group but is not the group supervisor.
(2) The PRA must—
(a)coordinate the gathering and dissemination of relevant or essential information for going-concern and emergency situations, including the dissemination of information which is of importance to the supervisory functions of another supervisory authority;
(b)conduct supervisory reviews and assessments of the financial situation of the group;
(c)assess the group's compliance with the rules on solvency, risk concentration and intra-group transactions set out in Articles 218 to 245 of the Solvency 2 Directive;
(d)assess the group's system of governance in accordance with regulation 25;
(e)assess whether the members of the administrative, management or supervisory body of the participating undertakings in the group fulfil the requirements set out in rules implementing Articles 42 and 257 of the Solvency 2 Directive;
(f)plan and coordinate, through regular meetings held at least annually or other appropriate means, supervisory activities in going-concern and emergency situations, in cooperation with the other supervisory authorities concerned and taking into account the nature, scale and complexity of the risks inherent in the business of all the undertakings in the group;
(g)lead the process for validating an internal model at group level as set out in regulation 49;
(h)lead the process for permitting the application of the regime referred to in Articles 237 to 240 of the Solvency 2 Directive; and
(i)carry out the other tasks, measures and decisions assigned to the group supervisor by the Solvency 2 Directive.
(3) In order to facilitate the exercise of the tasks referred to in paragraph (2), the PRA must establish and chair a college of supervisors comprising—
(a)the PRA;
(b)the supervisory authorities of the EEA States in which the head office of every subsidiary undertaking in the group is situated; and
(c)EIOPA.
(4) The PRA—
(a)must permit the supervisory authorities of significant branches and related undertakings to participate in the college of supervisors, provided that their participation is limited to achieving an efficient exchange of information;
(b)must ensure that the processes for cooperation, exchange of information and consultation between the PRA and the other supervisory authorities concerned are effectively applied in accordance with Title 3 of the Solvency 2 Directive, with a view to promoting the convergence of their respective decisions and activities;
(c)may agree with the other supervisory authorities concerned that some activities of the college be carried out by a reduced number of supervisory authorities where the effective functioning of the college of supervisors requires it;
(d)must conclude co-ordination arrangements with the other supervisory authorities concerned for the establishment and functioning of the college of supervisors.
(5) The arrangements referred to in paragraph (4)(d) must specify procedures for—
(a)the decision-making process among the supervisory authorities in accordance with Articles 231, 232 and 247 of the Solvency 2 Directive; and
(b)consultation under Articles 218(5) and 248(4) and of the Solvency 2 Directive.
(6) Where the PRA has received advice from EIOPA in relation to the establishment and functioning of the college of supervisors, it must, after consulting the other supervisory authorities concerned, duly consider such advice before the end of the period of two months beginning with the date the advice was received before taking its final decision.
(7) Where the PRA makes a decision regarding the establishment and functioning of the college of supervisors, the PRA must—
(a)ensure the decision contains a statement setting out in full the reasons for the decision and explaining any significant deviation from any advice given by EIOPA; and
(b)send a copy of the decision to the other supervisory authorities concerned.
(8) The PRA must send EIOPA any information on the functioning of the college of supervisors and any difficulties encountered that are relevant for EIOPA's reviews of the operational functioning of colleges of supervisors.
Modifications etc. (not altering text)