PART 3Groups

CHAPTER 6Measures to facilitate group supervision

Rule for deciding the group supervisorF126.

(1)

F2Subject to paragraphs (2) and (3), where an insurance undertaking or reinsurance undertaking that is authorised by the PRA under Part 4A of FSMA is part of a group, the PRA is the group supervisor and must supervise that group.

(2)

The FSC is the group supervisor and must supervise that group where the group includes a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking and—

(a)

the FSC was designated as the group supervisor under Article 247 of the Solvency 2 Directive before IP completion day; or

(b)

the PRA and the FSC have agreed that the FSC is to be the group supervisor.

F3(3)

Nothing in this regulation requires the PRA to conduct group supervision in respect of requirements which do not apply, as may be determined by the PRA under regulation 15, 24, 25 or 28.

Exceptions to the rule for deciding the group supervisorF427.

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Duties of group supervisor F5...28.

(1)

F6Subject to paragraph (3), paragraph (2) applies where the PRA is the group supervisor F7of a type of group referred to in regulation 9A(a) or (b) , F8....

(2)

The PRA must—

F9(a)

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(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 F10...;

(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 F11are fit and proper to carry out their functions;

F12(f)

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(g)

F13determine applications for an internal model at group level as set out in regulation 49;

F14(h)

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(i)

carry out the other tasks, measures and decisions assigned to the group supervisor by the F15United Kingdom law which implemented the Solvency 2 Directive.

F16(3)

Where the PRA is required to rely on supervision exercised by a supervisory authority in a third country which has a prudential group supervision regime determined as equivalent in accordance with regulation 35, the PRA may determine that paragraph (2)—

(a)

does not apply; or

(b)

applies with only such modifications as may be specified in the determination.

(4)

The PRA may not give a determination under paragraph (3) unless it is satisfied that —

(a)

compliance by insurance or reinsurance undertakings in the group with rules or requirements imposed by the PRA pursuant to paragraph (2) would be unduly burdensome; and

(b)

the determination would not adversely affect the advancement of any of the PRA’s objectives.

(5)

The PRA may revoke or vary a determination given under paragraph (3).

F17(3)

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F17(4)

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F17(5)

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F17(6)

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F17(7)

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F17(8)

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Cooperation and exchange of information between supervisory authoritiesF1829.

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Consultation between supervisory authoritiesF1930.

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Access to informationF2031.

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Verification of informationF2132.

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Group solvency and financial condition reportF2233.

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Enforcement measuresF2334.

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