The Solvency 2 Regulations 2015

Regulation 35

SCHEDULE 3 U.K. Parent undertakings outside the EEA: equivalence

1.  This Schedule specifies the procedure for verifying whether the insurance undertaking or reinsurance undertaking referred to in regulation 35(1) is subject to supervision which is equivalent to that set out in Title 3 of the Solvency 2 Directive. U.K.

2.  The PRA must follow the procedure set out in Flowchart 1 in order to determine whether— U.K.

(a) Article 19 of the EIOPA Regulation applies;

(b) the PRA must make the decision on equivalence;

(c) another supervisory authority will make the decision on equivalence; or

(d) the PRA must rely on equivalent group supervision exercised by the third country supervisory authorities.

3.  Flowchart 1 also imposes duties and confers powers on the PRA for the purposes of making and giving effect to that determination. U.K.

4.  Where reference is made to this paragraph in Flowchart 1, the PRA must— U.K.

(a) verify equivalence—

(i) at the level of the ultimate non-EEA solvency 2 parent where—

(aa) the Commission has adopted a delegated act under Article 260(3) of the Solvency 2 Directive; and

(bb) the parent undertaking is a subsidiary of an insurance holding company or a mixed financial holding company which has its head office in a third country, or of a third country insurance undertaking or third country reinsurance undertaking; or

(ii) in all other cases, either at the level of the ultimate non-EEA solvency 2 parent or at a lower level;

(b) where sub-paragraph (a)(ii) applies, explain its decision to the group to which the insurance undertaking or reinsurance undertaking belongs;

(c) consult the other supervisory authorities making up the college before making a decision on equivalence;

(d) ensure that its decision on equivalence does not contradict any previous decision taken in relation to the third country, except where it is necessary to do so in order to take into account significant changes to the supervisory regime in Title 3 of the Solvency 2 Directive or the third country; and

(e) take its decision on equivalence in accordance with the criteria set out in any delegated act made by the European Commission under Article 260(2) of the Solvency 2 Directive.

5.  In this schedule, “ acting group supervisor” means the supervisory authority acting as the group supervisor for the purposes of determining whether the insurance undertaking or reinsurance undertaking is subject to supervision which is equivalent to that set out in Title 3 of the Solvency 2 Directive. U.K.