The Solvency 2 Regulations 2015

Subsidiaries: application of Articles 238 and 239 of the Solvency 2 Directive

52.—(1) Where the PRA is a member of a college of supervisors responsible for supervising a subsidiary undertaking, the parent undertaking may apply to the PRA for permission to apply rules implementing Articles 238 and 239 of the Solvency 2 Directive to the subsidiary undertaking.

(2) The PRA may approve an application referred to in paragraph (1) in accordance with the procedure specified in Schedule 4.

(3) Where the PRA has granted approval in accordance with paragraph (2), it must revoke approval where—

(a) the subsidiary undertaking is no longer included in group supervision carried out by the group supervisor at the level of the parent undertaking in accordance with Title 3 of the Solvency 2 Directive;

(b) the risk management processes and internal control mechanisms of the parent undertaking have failed to cover the subsidiary undertaking and the group has failed to rectify the failure within an appropriate period of time;

(c) the parent undertaking has failed to manage the subsidiary undertaking prudently, and the group has failed to rectify the problem in a reasonable period of time;

(d) the group supervisor revokes the agreement referred to in the third sub-paragraph of Article 246(4) of the Solvency 2 Directive; or

(e) the group supervisor revokes the agreement referred to in the first sub-paragraph of Article 256(2) of the Solvency 2 Directive.