The Solvency 2 Regulations 2015

Third-country insurance undertakings: approval of supervision in more than one EEA State

50.—(1) A third-country insurance undertaking which is authorised, or has applied for authorisation, under national laws implementing Article 162(1) of the Solvency 2 Directive from more than one EEA State may apply to the PRA for permission to—

(a) calculate its solvency capital requirement—

(i) in relation to the entire business which it pursues within EEA States; and

(ii) taking account only of operations effected by its branches established in EEA States;

(b) lodge the deposit required under Article 162(2)(e) of the Solvency 2 Directive in only one of those EEA States in which it is authorised, or has applied for authorisation; and

(c) hold the assets required to satisfy the minimum capital requirement in any one of the EEA States in which it pursues its activities.

(2) The PRA may only approve an application made under paragraph (1) if the supervisory authorities of all of the EEA States in which the undertaking is authorised, or has applied for authorisation, agree that the undertaking should benefit from the approval.

(3) On granting the approval, the PRA must require the undertaking to lodge the deposit referred to in paragraph (1)(b) in the EEA State of the solvency supervisor.

(4) Where the PRA is the solvency supervisor it must request any information that is necessary for the supervision of the overall solvency of the undertaking’s branches established in EEA States from the other authorising supervisory authorities.

(5) Where another authorising supervisory authority is the solvency supervisor the PRA must take reasonable steps to provide it with any information necessary to supervise the solvency of all of the undertaking’s branches in the United Kingdom.

(6) Subject to paragraph (7), the PRA may vary an approval granted under paragraph (2) where all of the authorising supervisory authorities agree that the undertaking should benefit from the proposed variation.

(7) The PRA may not vary an approval granted under paragraph (2) to permit the undertaking to benefit from a permission to take one of the steps in paragraphs (1)(a) to (1)(c) but not the others.

(8) The PRA may revoke an approval granted under paragraph (2) where it considers the approval should be revoked.

(9) The PRA must revoke an approval granted under paragraph (2) where revocation is requested by another authorising supervisory authority.

(10) Before the PRA revokes an approval granted under paragraph (2), the PRA must—

(a) where the approval is revoked under paragraph (8), ask all the other authorising supervisory authorities to withdraw the advantages referred to in Article 167(1) of the Solvency 2 Directive which have been granted to the undertaking;

(b) take reasonable steps to ensure that the approval is revoked at the same time as the other authorising supervisory authorities withdraw those advantages from the undertaking.

(11) In this regulation, “solvency supervisor” means the supervisory authority which is specified in the application under paragraph (1) as being responsible for supervising the solvency of the entire business of the undertaking’s branches established in EEA States.

(12) In this regulation, “authorising supervisory authority” means a supervisory authority that agreed under paragraph (2) that the undertaking should benefit from the approval.