TITLE III

CONDITIONS GOVERNING THE BUSINESS OF ASSURANCE
CHAPTER 5

ASSURANCE UNDERTAKINGS IN DIFFICULTY OR IN AN IRREGULAR SITUATION

Withdrawal of authorisation
Article 39
1
Authorisation granted to an assurance undertaking by the competent authority of its home Member State may be withdrawn by that authority if that undertaking:
a
does not make use of the authorisation within 12 months, expressly renounces it or ceases to carry on business for more than six months, unless the Member State concerned has made provision for authorisation to lapse in such cases;
b
no longer fulfils the conditions for admission;
c
has been unable, within the time allowed, to take the measures specified in the restoration plan or finance scheme referred to in Article 37;
d
fails seriously in its obligations under the regulations to which it is subject.
In the event of the withdrawal or lapse of the authorisation, the competent authority of the home Member State shall notify the competent authorities of the other Member States accordingly and they shall take appropriate measures to prevent the assurance undertaking from commencing new operations within their territories, under either the freedom of establishment or the freedom to provide services. The home Member State's competent authority shall, in conjunction with those authorities, take all necessary measures to safeguard the interests of the assured persons and shall restrict, in particular, the free disposal of the assets of the assurance undertaking in accordance with Article 37(1), (2), second subparagraph, and (3), second subparagraph.
2
Any decision to withdraw an authorisation shall be supported by precise reasons and notified to the assurance undertaking in question.