The Solvency 2 Regulations 2015

Rule for deciding the group supervisor

26.—(1) This regulation—

(a) states the rule which applies for the purposes of deciding when—

(i) the PRA is the group supervisor of a group; and

(ii) the PRA must recognise another supervisory authority as the group supervisor of a group; and

(b) applies only when regulation 27 (which specifies exceptions to the rule) does not apply.

(2) Where the PRA is the supervisor of all the insurance undertakings and reinsurance undertakings in a group, the PRA is the group supervisor of the group.

(3) Where paragraph (2) does not apply and the group is headed by an insurance undertaking or reinsurance undertaking which is authorised by the PRA under Part 4A of FSMA, the PRA is the group supervisor of the group.

(4) Where paragraph (2) does not apply and the group is not headed by an insurance undertaking or reinsurance undertaking, the PRA is the group supervisor of the group in any of the following circumstances—

(a) where—

(i) an insurance undertaking or reinsurance undertaking has an insurance holding company or mixed financial holding company as a parent; and

(ii) the PRA has authorised that insurance undertaking or reinsurance undertaking;

(b) where—

(i) the group contains two or more insurance undertakings or reinsurance undertakings with their head offices in an EEA State;

(ii) the undertakings have the same insurance holding company or mixed financial holding company as a parent;

(iii) one of those undertakings has been authorised by the PRA; and

(iv) the insurance holding company or mixed financial holding company has its head office in the United Kingdom;

(c) where—

(i) the group is headed by two or more insurance holding companies or mixed financial holding companies with their head offices in different EEA States;

(ii) there is an insurance undertaking or reinsurance undertaking in the group in each of those EEA States; and

(iii) the PRA has authorised the insurance undertaking or reinsurance undertaking with the largest balance sheet total;

(d) where—

(i) two or more insurance undertakings or reinsurance undertakings with their head offices in an EEA State have the same insurance holding company or mixed financial holding company as a parent;

(ii) none of those undertakings has been authorised in the EEA State in which the insurance holding company or mixed financial holding company has its head office; and

(iii) the PRA has authorised the insurance undertaking or reinsurance undertaking with the largest balance sheet total;

(e) where the group is a group without a parent undertaking, or in any circumstances not referred to in sub-paragraphs (a) to (d), the PRA has authorised the insurance undertaking or reinsurance undertaking with the largest balance sheet total.

(5) Where another supervisory authority has been designated as the group supervisor in accordance with national laws implementing Article 247 of the Solvency 2 Directive, the PRA must recognise that supervisory authority as the group supervisor of the group.