6. The Solvency 2 Regulations 2015 M1 are amended in accordance with this Part.
Commencement Information
I1Reg. 6 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)
Marginal Citations
7.—(1) In Part 1 (citation, commencement and interpretation), regulation 2 (interpretation) is amended as follows.
(2) For paragraph (1) substitute—
“(1) In these Regulations—
“capital add-on” means the amount by which the solvency capital requirement of an insurance undertaking or reinsurance undertaking, or a group, is increased by the PRA;
“college of supervisors” means a permanent but flexible structure for the co-operation, co-ordination and facilitation of decision making concerning the supervision of a group;
“common management relationship” means a relationship between two or more undertakings which satisfies the following conditions—
the undertakings are not connected in the manner described in section 1162 of, and Schedule 7 to, the Companies Act 2006, and
either—
the undertakings are managed on a unified basis pursuant to a contract with one of them, or provisions in the undertakings' respective memoranda or articles of association, or
the administrative, management or supervisory bodies of those undertakings consist, for the major part, of the same persons in office during the financial year in respect of which it is being decided whether such a relationship exists;
[F1“financial conglomerate” has the meaning given in regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004, as amended by the Financial Conglomerates and Other Financial Groups (Amendments etc.) (EU Exit) Regulations 2019;]
“Financial Conglomerates Directive” means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings, and investment firms in a financial conglomerate, as it had effect immediately before [F2IP completion day];
[F1“FSC” means the Financial Services Commission of Gibraltar;]
“FSMA” means the Financial Services and Markets Act 2000;
[F1“Gibraltarian insurance undertaking” means an undertaking which—
has its head office in Gibraltar;
is authorised by the FSC to carry on one or more classes of insurance business within the meaning of section 2(1) of the Financial Services (Insurance Companies) Act of Gibraltar; and
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;]
[F1“Gibraltarian reinsurance undertaking” means an undertaking which—
has its head office in Gibraltar;
is authorised by the FSC to carry on insurance business limited to reinsurance within the meaning of section 2(1A) of the Financial Services (Insurance Companies) Act of Gibraltar; and
would require authorisation in accordance with Article 14 of the Solvency 2 Directive if the United Kingdom were a member State;]
“insurance holding company” means a parent undertaking which is not a mixed financial holding company and the main business of which is to acquire and hold participations in subsidiary undertakings, where those subsidiary undertakings are exclusively or mainly insurance or reinsurance undertakings, [F3or Gibraltarian insurance or reinsurance undertakings,] or third-country insurance or reinsurance undertakings, at least one of such subsidiary undertakings being an insurance or reinsurance undertaking [F4or a Gibraltarian insurance or reinsurance undertaking];
“method 1” and “method 2” have the meaning given in rule 1.2 of the Group Supervision part of the PRA Rulebook;
“mixed-activity insurance holding company” means a parent undertaking other than an insurance undertaking, a third-country insurance undertaking, a reinsurance undertaking [F5or Gibraltarian insurance or reinsurance undertaking], a third-country reinsurance undertaking, an insurance holding company or a mixed financial holding company, which includes at least one insurance or reinsurance undertaking among its subsidiary undertakings [F6or a Gibraltarian insurance or reinsurance undertaking];
[F1“mixed financial holding company” means a parent undertaking other than a regulated entity, which, together with its subsidiaries, at least one of which is a regulated entity which has its head office in the United Kingdom or in Gibraltar, constitutes a financial conglomerate;]
“non-UK solvency 2 parent” means a parent undertaking which is—
a third-country insurance undertaking, or
an insurance holding company or mixed financial holding company with its head office outside the United Kingdom [F7and Gibraltar];
“parent undertaking” means—
a parent undertaking, within the meaning of section 420 of FSMA, or
an undertaking which, in the opinion of the PRA, effectively exercises a dominant influence over another undertaking;
“participating undertaking” means —
an undertaking which is either a parent undertaking or other undertaking which holds a participation, or an undertaking linked with another undertaking by a common management relationship, or
an undertaking which holds, directly or indirectly, voting rights or capital in another undertaking over which, in the opinion of the PRA, it effectively exercises a significant influence;
“regulated entity” has the meaning given in regulation 1(2) of the Financial Conglomerates and Other Financial Groups Regulations 2004 M2 [F8(as amended by the Financial Conglomerates and Other Financial Groups (Amendments etc.) (EU Exit) Regulations 2019), read as if the reference in paragraph (b) of that definition to insurance undertakings and reinsurance undertakings included a reference to Gibraltarian insurance undertakings and Gibraltarian reinsurance undertakings];
“related undertaking” means either a subsidiary undertaking or other undertaking in which a participation is held, or an undertaking linked with another undertaking by a common management relationship;
“Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), as it has effect immediately before [F2IP completion day];
“Solvency 2 Regulation” means Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);
“subsidiary undertaking” means—
a subsidiary undertaking, within the meaning of section 420 of FSMA, or
an undertaking over which, in the opinion of the PRA, a parent undertaking effectively exercises a dominant influence;
“supervisory authority” means the national authority, or the national authorities, empowered to supervise third-country insurance undertakings or third-country reinsurance undertakings;
“third country” means a country other than the United Kingdom [F9or Gibraltar];
“third-country insurance undertaking” means an undertaking which would require authorisation as an insurance undertaking in accordance with the United Kingdom law which implemented Article 14 of the Solvency 2 Directive, if its head office were situated in the United Kingdom [F10but does not include a Gibraltarian insurance undertaking];
“third-country reinsurance undertaking” means an undertaking which if its head office were situated in the United Kingdom—
would require permission under Part 4A of FSMA to carry out regulated activities relating to reinsurance, and
immediately before [F2IP completion day], would have required authorisation as a reinsurance undertaking in accordance with Article 14 of the Solvency 2 Directive
[F11but does not include a Gibraltarian reinsurance undertaking];
“UK solvency 2 parent” means a parent undertaking with its head office in the United Kingdom [F12or Gibraltar] which is—
an insurance undertaking or reinsurance undertaking which is a participating undertaking in at least one insurance undertaking, reinsurance undertaking or third-country insurance undertaking,
an insurance holding company, or
a mixed financial holding company;
“ultimate non-UK solvency 2 parent” means a non-United Kingdom solvency 2 parent which has no parent undertaking which is a United Kingdom solvency 2 parent or non-United Kingdom solvency 2 parent;
“ultimate UK solvency 2 parent” means a United Kingdom solvency 2 parent which has no parent undertaking which is a United Kingdom solvency 2 parent.”
(3) After paragraph (1) insert—
“(1A) In these Regulations, reference to a “group” is to a group of undertakings that—
(a)does not include any undertaking not included in the scope of group supervision in accordance with a direction issued by the PRA under section 138A of FSMA; and
(b)either—
(i)consists of a participating undertaking, its subsidiaries and the entities in which the participating undertaking or its subsidiaries hold a participation, as well as undertakings linked to each other by a common management relationship, or
(ii)is based on the establishment, contractually or otherwise, of strong and sustainable financial relationships among those undertakings, and that may include mutual or mutual-type associations, provided that—
(aa)one of those undertakings effectively exercises, through centralised coordination, a dominant influence over the decisions, including financial decisions, of the other undertakings that are part of the group, and
(bb)the establishment and dissolution of such relationships are subject to prior approval by the PRA.
(1B) For the purposes of paragraph (1A), the undertaking exercising the centralised coordination must be considered as the parent undertaking, and the other undertakings must be considered as subsidiaries.”
(4) After paragraph (2) insert—
“(3) In these Regulations, a reference to the PRA Rulebook is to the rulebook published by the PRA containing rules made by the PRA under FSMA as the rulebook has effect on [F13IP completion day].
(4) In these Regulations, a reference to the United Kingdom law which implemented—
(a)the Financial Conglomerates Directive, or a provision thereof, is to the law of the United Kingdom which was relied on by the United Kingdom immediately before [F13IP completion day] to implement Directive 2002/87/EC and its implementing measures;
(b)the capital requirements directive and the capital requirements regulation, or a provision thereof, is to the law of the United Kingdom which was relied on by the United Kingdom immediately before [F13IP completion day] to—
(i)implement Directive 2013/36/EU and its implementing measures, and
(ii)enable an EU obligation (within the meaning of Part 2 of Schedule 1 to the European Communities Act 1972, as that Act has effect immediately before [F13IP completion day]) under Regulation (EU) No 575/2013 to be implemented;
(c)the Solvency 2 Directive, or a provision thereof, is to the law of the United Kingdom which was relied on by the United Kingdom immediately before [F13IP completion day] to implement Directive 2009/138/EU and its implementing measures.
(5) For the purposes of paragraph (4), a reference to the law of the United Kingdom is to the law—
(a)as it has effect on [F13IP completion day], in the case of rules made by the Financial Conduct Authority or by the PRA under FSMA, and
(b)as amended from time to time, in all other cases.”
Textual Amendments
F1Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
F2Words in reg. 7(2) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(b)(i)
F3Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F4Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F5Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)
F6Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F7Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(d); 2020 c. 1, Sch. 5 para. 1(1)
F8Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(e); 2020 c. 1, Sch. 5 para. 1(1)
F9Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(f); 2020 c. 1, Sch. 5 para. 1(1)
F10Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(g); 2020 c. 1, Sch. 5 para. 1(1)
F11Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(h); 2020 c. 1, Sch. 5 para. 1(1)
F12Words in reg. 7(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(2)(i); 2020 c. 1, Sch. 5 para. 1(1)
F13Words in reg. 7(4) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(b)(ii)
Commencement Information
I2Reg. 7 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)
Marginal Citations
8.—(1) Part 2 (supervision) is amended as follows.
(2) In regulation 3 (exercise of PRA and FCA functions), in paragraph (1)—
(a)for “the Solvency 2 Directive” substitute “ the United Kingdom law which implemented the Solvency 2 Directive ”;
(b)omit sub-paragraph (a) and (b).
(3) After regulation 4 (review of capital add-ons) insert—
4A.—(1) The PRA may extend the period of six months in which an insurance undertaking or reinsurance undertaking must take the measures necessary to achieve the re-establishment of the level of eligible own funds covering the solvency capital requirement or the reduction of its risk profile to ensure compliance with the solvency capital requirement by up to—
(a)three months, or
(b)in the event of a declaration by the Prudential Regulation Committee of the Bank of England under paragraph (2) and considering all relevant factors including the average duration of the technical provisions, seven years.
(2) The Prudential Regulation Committee of the Bank of England must declare the existence of exceptional adverse situations in the conditions set out in paragraph (3).
(3) Exceptional adverse situations exist where the financial situation of insurance or reinsurance undertakings representing a significant share of the market or of the affected lines of business are seriously or adversely affected by one or more of the following conditions—
(a)a fall in financial markets which is unforeseen, sharp and steep;
(b)a persistent low interest rate environment;
(c)a high-impact catastrophic event.
(4) The Prudential Regulation Committee of the Bank of England must assess on a regular basis whether the conditions referred to in paragraph (3) still apply.
(5) The Prudential Regulation Committee of the Bank of England must declare when an exceptional adverse situation has ceased to exist.
(6) An extension granted under paragraph (1)(b) must be withdrawn where the insurance undertaking or reinsurance undertaking submits to the PRA a progress report that shows that there was no significant progress in achieving the re-establishment of the level of eligible own funds covering the solvency capital requirement or the reduction of the risk profile to ensure compliance with the solvency capital requirement between the date of the observation of non-compliance of the solvency capital requirement and the date of the submission of the progress report.
4B.—(1) [F14For the relevant quarter and every quarter thereafter, by the 8th working day of the month that follows the end of the quarter], the PRA must publish on its website the following information for each relevant currency—
(a)the relevant risk-free interest rate term structure used to calculate the best estimate, without any matching adjustment or volatility adjustment,
(b)for each relevant duration, credit quality and asset class, a fundamental spread for the calculation of the matching adjustment to the relevant risk-free interest rate term structure used to calculate the best estimate for a portfolio of life insurance or reinsurance obligations, and
(c)for each relevant national insurance market, a volatility adjustment to the relevant risk-free interest rate term structure used to calculate the best estimate.
[F15(1A) For the purposes of paragraph (1), the “relevant quarter” is the first quarter which ends after this regulation comes into force.]
(2) Paragraph 17(9)(b) of Schedule 6A to the Bank of England Act 1998 does not prohibit the making of a rule that imposes an obligation on PRA-authorised persons by reference to information published by the PRA under this regulation.
(3) The volatility adjustment referred to in paragraph (1) must, for each relevant currency—
(a)be based on the spread between the interest rate that could be earned from the assets included in the reference portfolio for that currency and the rates of the relevant basic risk-free interest rate term structure for that currency, and
(b)correspond to 65% of the risk-corrected currency spread.
(4) The reference portfolio for a currency is one that is representative of the assets which are denominated in that currency and which insurance and reinsurance undertakings are invested in to cover the best estimate for insurance and reinsurance obligations denominated in that currency.
(5) The risk-corrected currency spread must be calculated as the difference between the spread referred to in paragraph (3)(a) and the portion of the spread that is attributable to a realistic assessment of expected losses or unexpected credit or other risk of the assets.
(6) For each relevant country, the volatility adjustment to the risk-free interest rates referred to in paragraph 3(b) for the currency of that country must, before application of the 65% factor, be increased by the difference between the risk-corrected country spread and twice the risk-corrected currency spread, whenever that difference is positive and the risk-corrected country spread is higher than [F1685] basis points.
(7) For the purposes of paragraph (6), the risk-corrected country spread must be—
(a)calculated in the same way as the risk-corrected currency spread for the currency of that country, but based on a reference portfolio that is representative for the assets which insurance and reinsurance undertakings are invested in, to cover the best estimate for insurance and reinsurance obligations of products sold in the insurance market of that country, and
(b)denominated in the currency of that country.
4C.—(1) If this regulation applies, the PRA may impose any requirement in relation to a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking (the Gibraltarian undertaking) which it could impose if—
(a)the undertaking's permission was a Part 4A permission (as defined by section 55A(5) of FSMA); and
(b)the PRA was entitled to exercise its power under section 55M(3) of FSMA.
(2) This regulation applies if—
(a)the Gibraltarian undertaking is contravening, or is at material risk of contravening, in respect of its activities in the United Kingdom, any requirement applying to that undertaking in or under these Regulations, the Solvency 2 Regulation, or UK law which implemented the Solvency 2 directive (“a relevant requirement”);
(b)the undertaking has, in purported compliance with any relevant requirement imposed on it, knowingly or recklessly given the PRA information which is false or misleading in a material particular; or
(c)subject to paragraph (3), it is desirable to impose the requirement in order to advance any of the PRA's objectives.
(3) The PRA may not impose a requirement in reliance on paragraph (2)(c) if doing so would, before IP completion day, have been considered to constitute financial supervision of the undertaking unless the conditions in paragraph (4) are satisfied.
(4) The conditions in this paragraph are satisfied if—
(a)the requirement to be imposed is necessary and appropriate to protect against the risk of disruption to the continuity of financial services that could, in the opinion of the PRA, threaten financial stability in the United Kingdom;
(b)the FSC has not, in the opinion of the PRA, taken measures to ensure the contravention or risk of contravention is remedied; and
(c)no reorganisation measures have been commenced by the FSC or other authorities in Gibraltar in relation to the undertaking.
(5) For the purposes of this regulation, “reorganisation measures” means any measures by the FSC or other Gibraltarian authorities which are intended to preserve or restore the financial situation of the Gibraltar insurance or reinsurance undertaking concerned (“the relevant undertaking”) and which affect pre-existing rights of parties other than the relevant undertaking itself, including but not limited to measures involving the possibility of a suspension of payments, suspension or enforcement measures or reduction of claims.
(6) Nothing in this regulation affects the powers of the FSC or any other Gibraltarian authority.
4D.—(1) A requirement takes effect—
(a)immediately, if the notice given under paragraph (3) states that that is the case;
(b)on such date as may be specified in the notice; or
(c)if no date is specified in the notice, when the matter to which it relates is no longer open to review.
(2) A requirement may be expressed to take effect immediately (or on a specified date) only if the PRA, having regard to the ground on which it is exercising the power under regulation 4C, considers that it is necessary for the requirement to take effect immediately (or on that date).
(3) If the PRA proposes to impose a requirement under regulation 4C on a Gibraltar insurance or reinsurance undertaking, or imposes such a requirement with immediate effect, it must give the undertaking written notice.
(4) The notice must—
(a)give details of the requirement;
(b)inform the undertaking of when the requirement takes effect;
(c)state the PRA's reasons for imposing the requirement and for its determination as to when the requirement takes effect;
(d)inform the undertaking that it may make representations to the PRA within such period as may be specified in the notice (whether or not it has referred the matter to the Upper Tribunal); and
(e)inform it of its right to refer the matter to the Upper Tribunal.
(5) The PRA may extend the period allowed under the notice for making representations.
(6) If, having considered any representations made by the undertaking, the PRA decides—
(a)to impose the requirement proposed, or
(b)if it has been imposed, not to rescind the requirement,
it must give the undertaking written notice.
(7) If, having considered any representations made by the undertaking, the PRA decides—
(a)not to impose the requirement proposed,
(b)to impose a different requirement from that proposed, or
(c)to rescind a requirement which has effect,
it must give it written notice.
(8) A notice given under paragraph (6) must inform the undertaking of its right to refer the matter to the Upper Tribunal.
(9) A notice under paragraph (7)(b) must comply with paragraph (4).
(10) If a notice informs a person of the person's right to refer a matter to the Upper Tribunal, it must give an indication of the procedure on such a reference.”]
(4) Omit regulations 5 (passporting: notification of home state regulator), 6 (EIOPA: information), 7 (EIOPA and EBA: notifications), 8 (Other EEA States: information) and 9 (Non-compliance with the minimum capital requirement: provision of information to other supervisory).
Textual Amendments
F14Words in reg. 8(3) substituted (31.12.2020 immediately before IP completion day) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 3) Regulations 2019 (S.I. 2019/1390), regs. 1(4), 11(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
F15Words in reg. 8(3) inserted (31.12.2020 immediately before IP completion day) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) (No. 3) Regulations 2019 (S.I. 2019/1390), regs. 1(4), 11(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
F16Word in reg. 8(3) substituted (31.12.2020 immediately before IP completion day) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(4), 54(3)
F17Words in reg. 8(3) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(3) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(e)(i)); 2020 c. 1, Sch. 5 para. 1(1)
Commencement Information
I3Reg. 8 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)
9.—(1) Part 3 (groups) is amended as follows.
(2) Before regulation 10 (risk concentration and intra-group transactions) insert—
“9A. This Part applies to the following types of groups—
[F18(a) insurance or reinsurance undertakings—
(i)which are a participating undertaking in at least one insurance undertaking, reinsurance undertaking, Gibraltarian insurance undertaking, Gibraltarian reinsurance undertaking, third-country insurance undertaking or third-country reinsurance undertaking; or
(ii)the parent undertaking of which is a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking;]
(b)insurance or reinsurance undertakings, the parent undertaking of which is an insurance holding company or a mixed financial holding company which has its head office in the United Kingdom [F19or Gibraltar],
(c)insurance or reinsurance undertakings, the parent undertaking of which is an insurance holding company or a mixed financial holding company which has its head office in a third country or a third-country insurance or reinsurance undertaking, and
(d)insurance or reinsurance undertakings, the parent undertaking of which is a mixed-activity insurance holding company.
9B. Where the participating insurance or reinsurance undertaking [F20, or participating Gibraltarian insurance or reinsurance undertaking] or the insurance holding company or the mixed financial holding company referred to in regulation 9A(a) and (b) is a subsidiary undertaking of—
(a)another insurance or reinsurance undertaking,
[F21(aa)another Gibraltar insurance or reinsurance undertaking;]
(b)another insurance holding company, or
(c)another mixed financial holding company,
which has its head office in the United Kingdom [F22or Gibraltar], the United Kingdom law which implemented Articles 218 to 258 of the Solvency 2 Directive apply only at the level of the [F23ultimate UK solvency 2 parent which has its head office in the United Kingdom or in Gibraltar.”]
(3) Regulation 10 is amended as follows—
(a)for “of a group” substitute “ of a type of group referred to in regulation 9A(a) or (b) ”;
(b)in Table 1, in the first row, in the second column—
[F24(i)in the first paragraph—
(aa)in sub-paragraphs (a) and (b), for “insurance undertaking or reinsurance undertaking” both times it appears, substitute “ insurance undertaking, Gibraltarian insurance undertaking, reinsurance undertaking or Gibraltarian reinsurance undertaking ”;
(bb)in sub-paragraph (a), for “an EEA State” substitute “ the United Kingdom or Gibraltar ”;
(cc)in sub-paragraph (b), after “reinsurance undertaking,” insert “ Gibraltarian insurance undertaking, Gibraltarian reinsurance undertaking, ”]
(ii)in the second paragraph—
(aa)after “supplementary supervision”, insert “ by the FCA, where the FCA is the supplementary supervisor, or the PRA ”;
(bb)before “Article 5(2)”, insert “ the United Kingdom law which implemented ”;
(iii)in the third paragraph, for “other supervisory authorities concerned in supervising the group”, substitute “ FCA ”;
[F25(c)in Table 1, in the second row—
(i)for “EEA solvency 2 parent” both times it occurs, substitute “ UK solvency 2 parent ”;
(ii)after “in accordance with” insert “ the law of the United Kingdom or of Gibraltar which was relied on by the United Kingdom or Gibraltar respectively immediately before IP completion day to implement ”]
(4) In regulation 11 (equivalent provisions)—
(a)for paragraph (2) substitute—
“(2) Where the mixed financial holding company is subject to equivalent provisions under the United Kingdom law which implemented the Solvency 2 Directive and the United Kingdom law which implemented the Financial Conglomerates Directive, the PRA may apply only the relevant provisions of the United Kingdom law which implemented the Financial Conglomerates Directive to the mixed financial holding company.”;
(b)in paragraph (3) for “other supervisory authorities concerned in supervising the group”, substitute “ FCA, where there is a firm in the group that is authorised and regulated by the FCA ”;
(c)for paragraph (4) substitute—
“(4) Where the mixed financial holding company is subject to equivalent provisions under the United Kingdom law which implemented the following two sets of legislation—
(a)the Solvency 2 Directive, and
(b)the capital requirements directive and the capital requirements regulation,
the PRA may apply only the United Kingdom law relating to the most significant sector, as determined in accordance with the United Kingdom law which implemented Article 3(2) of the Financial Conglomerates Directive.”
(d)in paragraph (5), for “consolidating supervisor under the capital requirements directive” substitute “ FCA, where the FCA is the consolidating supervisor under the capital requirements regulation ”.
[F26(5) Omit regulation 12 (exclusion of undertaking from group supervision).]
[F27(5A) For regulation 13, substitute—
“13. The PRA may supervise an ultimate UK solvency 2 parent at group level in the United Kingdom where—
(a)the ultimate UK solvency 2 parent has its head office in Gibraltar; and
(b)the PRA is not the group supervisor.”
(5B) For regulation 14, substitute—
“14.—(1) The PRA must follow the procedure set out in this regulation when supervising an ultimate UK solvency 2 parent under regulation 13(1).
(2) Before deciding to exercise supervision, the PRA must consult the FSC and the ultimate UK solvency 2 parent.
(3) If the PRA decides to exercise supervision, the PRA must explain its decision to both the FSC and the ultimate UK solvency 2 parent.
(4) The PRA must recognise and apply any permission granted pursuant to the laws of Gibraltar which were relied on immediately before IP completion day to implement Article 231 or 233(5) of the Solvency 2 Directive, as those laws are amended from time to time, to the ultimate UK solvency 2 parent to calculate the group solvency capital requirement for insurance undertakings, reinsurance undertakings, Gibraltarian insurance undertakings and Gibraltarian reinsurance undertakings in the group on the basis of an internal model.”]
(6) For regulation 15 substitute—
15.—(1) Subject to paragraph (2), where the PRA is the group supervisor of a type of group referred to in regulation 9A(a) or (b), the PRA must—
(a)ensure that the calculations referred to in rules 4.1 and 4.2 of the Group Supervision part of the PRA Rulebook are carried out at least annually to ensure that the group has adequate financial resources at the level of the ultimate UK solvency 2 parent,
(b)conduct supervisory reviews to determine whether the insurance undertakings or reinsurance undertakings in the group are complying with the requirement to ensure that the group has adequate financial resources at the level of the ultimate UK solvency 2 parent, and
(c)where the group is not headed by an insurance undertaking or reinsurance undertaking [F28, Gibraltarian insurance undertaking or Gibraltarian reinsurance undertaking], consult the undertakings in the group before identifying an undertaking other than an insurance holding company or a mixed financial holding company to supply relevant data for, and the results of, the calculations referred to in paragraph (1)(a).
(2) Subject to paragraph (3), where the PRA is required to rely on supervision exercised by a supervisory authority in a third country which has a prudential group supervision regime which is determined as equivalent in accordance with regulation 35, the PRA may determine that paragraph (1)—
(a)does not apply, or
(b)applies with only such modifications as may be specified in the determination.
(3) The PRA may not give a determination under paragraph (2) unless it is satisfied that—
(a)compliance by insurance or reinsurance undertakings in the group with rules or requirements imposed by the PRA pursuant to paragraph (1) would be unduly burdensome; and
(b)the determination would not adversely affect the advancement of any of the PRA's objectives.
(4) The PRA may revoke or vary a determination given under paragraph (2).”
[F29(7) In regulation 16 (choice of method)—
(a)in paragraph (1), for “and the other supervisory authorities” substitute “ and the FSC, if the FSC is ”;
(b)in paragraph (2)—
(i)in the opening words, for “EEA” substitute “ UK ”;
(ii)omit sub-paragraph (b).]
(8) In regulation 17, (inclusion of proportional share)—
[F30(a)in paragraph (2)(b)(ii) and (iii), for “a supervisory authority” substitute “the PRA (or, if paragraph (5) applies, the FSC);
(b)in paragraph (3), for “and the other supervisory authorities concerned in the supervision of the group”, substitute “ and, if paragraph (5) applies, the FSC ”;]
(c)after paragraph (3), insert—
“(4) The PRA may allow for the solvency deficit of the subsidiary undertaking to be considered on a proportional basis where, in the opinion of the PRA, the responsibility of the parent undertaking owning a share of the capital is strictly limited to that share of the capital.
[F31(5) This paragraph applies if—
(a)the FSC is concerned in the supervision of the group; or
(b)the group contains a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking.”]
[F32(9) In regulation 18 (related undertakings: calculation of group solvency)—
(a)in paragraph (1)—
(i)in sub-paragraph (b), after “reinsurance undertakings” insert “ Gibraltarian insurance undertakings, Gibraltarian reinsurance undertakings ”;
(ii)in sub-paragraph (e), for “an EEA State other than the United Kingdom” substitute “ Gibraltar ”;
(b)in paragraph (2)(a), for “that EEA State” substitute “ Gibraltar ”.]
(10) In regulation 19 (participating undertakings: calculation of group solvency)—
[F33(a)in paragraph (1)(b)—
(i)for “or reinsurance undertaking” substitute “ , reinsurance undertaking, Gibraltarian insurance undertaking or Gibraltarian reinsurance undertaking ”;
(ii)for “which is a participating undertaking in” substitute “ for which the calculation of the group solvency includes ”;]
(b)in paragraph (1)(c) after “to that specified in” insert “ the United Kingdom law which implemented ”;
(c)after paragraph (2) insert—
“(2A) Where the Treasury have made regulations under Article 379A of the Solvency 2 Regulation, or the Commission have adopted a delegated act under Article 227 of the Solvency 2 Directive prior to [F34IP completion day], determining that the supervisory regime of a third country is provisionally equivalent, that third country is deemed to be equivalent for the purposes of paragraph (2).”;
(d)for paragraph (3) substitute—
“(3) Where no regulations have been made by the Treasury pursuant to Article 379A of the Solvency 2 Regulation, and the Commission has not adopted a delegated act under Article 227 of the Solvency 2 directive prior to [F35IP completion day], the PRA—
(a)may on its own initiative, or
(b)must on the request of the insurance or reinsurance undertaking [F36or Gibraltarian insurance or reinsurance undertaking] for which the calculation of the group solvency includes a third-country insurance undertaking or third-country reinsurance undertaking,
verify whether a solvency regime in the third country is at least equivalent to the United Kingdom law which implemented Chapter 6 of Title 1, of the Solvency 2 Directive.”;
(e)in paragraph (4)—
(i)omit sub-paragraph (a);
(ii)in sub-paragraph (b), for “any directly applicable regulation made under paragraph (3) of article 227”, substitute “ Article 379 of the Solvency 2 Regulation ”;
(iii)in sub-paragraph (c), before “Chapter 6 of Title 1 of the Solvency 2 Directive”, insert “ the United Kingdom law which implemented ”;
(f)after paragraph (4) insert—
“(5) The PRA must publish and keep up to date on its website a list of all third countries referred to in paragraph (3).”
[F37(10A) After regulation 19, insert—
19A.—(1) This regulation applies where—
(a)the PRA is the group supervisor of a group;
(b)the group contains—
(i)a Gibraltarian insurance undertaking,
(ii)a Gibraltarian reinsurance undertaking, or
(iii)an insurance undertaking or a reinsurance undertaking for which the calculation of the group solvency includes an undertaking in paragraph (i) or (ii).
(2) The PRA must permit the group to take into account laws adopted by Gibraltar in respect of the group's solvency capital requirement and the own funds eligible to satisfy the solvency capital requirement in the calculation of the group's solvency.”.]
(11) In regulation 20 (internal models and capital add-ons)—
(a)in paragraph (1)—
(i)omit the words from “the cases” to “in particular”;
(ii)in sub-paragraph (b)—
[F38(aa)for “supervisory authorities concerned” substitute “ PRA or, where there is a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking, the FSC ”;]
(bb)omit “in accordance with Article 37 or 231(7) of the Solvency 2 Directive”;
(b)in paragraph (3) omit “the PRA is a member of the college of supervisors and”;
(c)in paragraph (4) omit “and the other members of the college of supervisors”;
[F39(d)in paragraph (5), for the words from the beginning to “supervising a group,” substitute “ Where the FSC is the group supervisor ”.]
(12) Omit regulations 21 (subsidiaries: solvency capital requirement), 22 (subsidiaries: non-compliance with the solvency and minimum capital requirements) and 23 (subsidiaries: revocation of approval for applying Articles 238 and 239 of the Solvency 2 Directive).
(13) In regulation 24 (supervision of risk concentration and intra-group transactions)—
(a)in paragraph (1) for “of a group” substitute “of a type of group referred to in regulation 9A(a) or (b);
[F40(aa)after paragraph (1), insert—
“(1A) For the purposes of paragraph (1), references to insurance undertakings and reinsurance undertakings include a reference to Gibraltarian insurance undertakings and Gibraltarian reinsurance undertakings.”]
[F41(b)in paragraph (2), for “and the other supervisory authorities concerned in the supervision of the group” substitute “ and, where the FSC is concerned in the supervision of the group, the FSC ”;]
[F42(c)in paragraph (3)—
(i)for “PRA is not” substitute “ FSC is ”;
(ii)for “PRA is consulted by the group supervisor” substitute “ the FSC consults the PRA ”.]
(14) In regulation 25 (supervision of system of governance)—
(a)for “of a group” substitute “ of a type of group referred to in regulation 9A(a) or (b) ”;
(b)at the end of sub-paragraph (b) omit “and”;
(c)omit sub-paragraph (c).
(15) For regulation 26 (rule for deciding the group supervisor) substitute—
26.—[F43(1)] [F44Subject to paragraph (2),] where an insurance undertaking or reinsurance undertaking that is authorised by the PRA under Part 4A of FSMA is part of a group, the PRA is the group supervisor and must supervise that group.
[F45(2) The FSC is the group supervisor and must supervise that group where the group includes a Gibraltarian insurance undertaking or a Gibraltarian reinsurance undertaking and—
(a)the FSC was designated as the group supervisor under Article 247 of the Solvency 2 Directive before IP completion day; or
(b)the PRA and the FSC have agreed that the FSC is to be the group supervisor.”]
(16) Omit regulation 27 (exceptions to the rule for deciding the group supervisor).
(17) In regulation 28 (duties of group supervisor and establishment of college of supervisors)—
(a)in the title omit “and establishment of college of supervisors”;
(b)in paragraph (1)—
(i)for “Paragraphs (2) to (7) apply” substitute “ Paragraph (2) applies ”;
(ii)for “of a group” substitute “ of a type of group referred to in regulation 9A(a) or (b) ”;
(iii)omit “and paragraph (8) applies where the PRA is a member of a college of supervisors for a group but is not the group supervisor”;
(c)in paragraph (2)—
(i)omit sub-paragraph (a);
(ii)in sub-paragraph (c) omit, “set out in Articles 218 to 245 of the Solvency 2 Directive”;
(iii)in sub-paragraph (e) for “fulfil the requirements set out in rules implementing Articles 42 and 257 of the Solvency 2 Directive” substitute “ are fit and proper to carry out their functions ”;
(iv)omit sub-paragraph (f);
(v)in sub-paragraph (g), for “lead the process for validating”, substitute “ determine applications for ”;
(vi)omit sub-paragraph (h);
(vii)in sub-paragraph (i), after “group supervisor by the”, insert “ United Kingdom law which implemented the ”;
(d)omit paragraphs (3) to (8).
(18) Omit regulations 29 (cooperation and exchange of information between supervisory authorities), 30 (consultation between supervisory authorities), 31 (access to information), 32 (verification of information), 33 (group solvency and financial condition report) and 34 (enforcement measures).
(19) For regulation 35 (non-EEA solvency 2 parent undertakings: equivalence) substitute—
35.—(1) The PRA must rely on the equivalent group supervision exercised by third country supervisory authorities, where the condition in paragraph (2) is met, or the alternative condition in paragraph (3) is met.
(2) The condition is that—
(a)either of the following determinations have been made—
(i)the Treasury have made regulations under regulation 380A(1) of the Solvency 2 Regulation, or the Commission has adopted a delegated act under Article 260(3) of the Solvency 2 Directive prior to [F46IP completion day], determining that the prudential regime of the third country is equivalent, or
(ii)the Treasury have made regulations under regulation 380A(4) of the Solvency 2 Regulation, or the Commission has adopted a delegated act under Article 260(5) of the Solvency 2 Directive prior to [F46IP completion day], determining that the prudential regime of the third country is temporarily equivalent,
(b)that determination still applies,
(c)there is no insurance undertaking or reinsurance undertaking situated in the United Kingdom with a balance sheet total that exceeds the balance sheet total of the parent undertaking situated in the third country, and
(d)the PRA has verified that the that the group is subject to supervision by a third-country supervisory authority in accordance with that equivalent or temporarily equivalent regime.
(3) The alternative condition is that the PRA has verified that the group is subject to supervision by a third country supervisory authority which is equivalent in accordance with paragraph (4).
(4) Where the conditions referred to in paragraph (2) do not apply, the PRA—
(a)must take a decision on equivalence at the request of the parent undertaking or the insurance undertaking or reinsurance undertaking; or
(b)may take a decision on equivalence on its own initiative,
in accordance with paragraph (5).
(5) Where the PRA takes a decision on equivalence, the PRA must—
(a)verify equivalence at the level of the ultimate non-UK solvency 2 parent,
(b)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 laid down in Part 3 of these Regulations and the PRA Rulebook on Group Supervision or to the supervisory regime in the third country, and
(c)take its decision on equivalence in accordance with the criteria set out in Regulation 380 of the Solvency 2 Regulation.
(6) Paragraph (7) applies where the PRA is required to rely on supervision exercised by a supervisory authority in a third country which, in accordance with paragraph (2) or (3), has a prudential group supervision regime which is determined as equivalent to Part 3 of these Regulations and the PRA Rulebook on Group Supervision (but see paragraph (8)).
(7) The PRA must consult the other members of the college of supervisors before taking a decision which is of importance to the supervisory tasks of another supervisory authority with regard to—
(a)changes in the shareholder, organisational or management structure of insurance undertakings or reinsurance undertakings in the group, which require the approval or authorisation of the other supervisory authority,
(b)a decision on the extension of the recovery period under rule 3.1(3) of the Undertakings in Difficulty part, and rule 4.4 of the Group Supervision part, of the PRA Rulebook, or
(c)the imposition of a capital add-on, a limitation on the use of an internal model for calculating the solvency capital requirement, or any other major sanctions or exceptional measures taken by the other supervisory authority.
(8) Paragraph (7) does not apply—
(a)in cases of urgency, or
(b)where consultation may jeopardise the effectiveness of a decision of the PRA,
provided the PRA informs the other supervisory authorities concerned without delay.
(9) The PRA must also consult a supervisory authority before taking a decision based on information received from that supervisory authority.”
(20) Omit Schedule 3 (parent undertakings outside the EEA: equivalence).
(21) For regulation 36 (parent undertaking outside the EEA: absence of equivalence) substitute—
36.—(1) This regulation applies where—
(a)a parent undertaking of an insurance undertaking or reinsurance undertaking established in the United Kingdom has its head office in a third country,
(b)one of the conditions in paragraph (2) is satisfied, and
(c)one of the conditions in paragraph (3) is satisfied.
(2) The conditions are—
(a)the prudential group supervision regime of the third country has not been determined to be equivalent by the Treasury or the PRA, and the Commission has not adopted a delegated act under Article 260(3) of the Solvency 2 Directive prior to [F47IP completion day], determining that the prudential regime of the third county is equivalent to Title 3 of the Solvency 2 Directive;
(b)the prudential group supervision regime has been determined to be equivalent by the Treasury, the PRA or the Commission, but the PRA has not verified that the group is subject to supervision by a third-country supervisory authority in accordance with that equivalent regime.
(3) The conditions are—
(a)the prudential group supervision regime of the third country has not been determined to be temporarily equivalent;
(b)if the prudential group supervision regime of the third country has been determined to be temporarily equivalent, the group is not subject to that regime or the group contains an insurance undertaking or reinsurance undertaking in the United Kingdom with a balance sheet total that exceeds the balance sheet total of the parent undertaking situated in the third country.
(4) The PRA must, at the level of the ultimate non-UK solvency 2 parent—
(a)ensure appropriate supervision of the insurance undertakings and reinsurance undertakings that are authorised by the PRA in the group, and
(b)ensure the objectives of group supervision are achieved.
(5) The PRA may require the group to establish an insurance holding company or mixed financial holding company with its head office in the United Kingdom.”
(22) After regulation 36 insert—
36A.—(1) Where the parent undertaking of an insurance undertaking or reinsurance undertaking with its head office outside the United Kingdom is itself a subsidiary of—
(a)an insurance holding company or a mixed financial holding company which has its head office in a third country, or
(b)a third-country insurance or reinsurance undertaking,
regulation 35 only applies at the level of the ultimate parent undertaking which is a third-country insurance holding company, a third-country mixed financial holding company, a third-country insurance undertaking or a third- country reinsurance undertaking.
(2) The PRA may, in the absence of equivalent supervision referred to in regulation 35, carry out a new verification of equivalence at a lower level where a parent undertaking of insurance or reinsurance undertakings exists, whether at the level of a third-country insurance holding company, a third country mixed financial holding company, a third-country insurance undertaking or a third-country reinsurance undertaking.
(3) Where paragraph (2) applies, regulation 35 applies with any necessary changes at that lower level.
(4) Where paragraph (2) applies, the PRA must explain its decision to the group to which the insurance undertaking or reinsurance undertaking belongs.”
(23) In regulation 37 (intra-group transactions), after paragraph (2), insert—
“(3) The requirements in regulation 24 apply to the transactions specified in paragraph (2).”
Textual Amendments
F18Words in reg. 9(2) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(a)(i); 2020 c. 1, Sch. 5 para. 1(1)
F19Words in reg. 9(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(a)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F20Words in reg. 9(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)
F21Words in reg. 9(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F22Words in reg. 9(2) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(b)(iii)(aa); 2020 c. 1, Sch. 5 para. 1(1)
F23Words in reg. 9(2) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(b)(iii)(bb); 2020 c. 1, Sch. 5 para. 1(1)
F24Reg. 9(3)(b)(i) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)
F25Reg. 9(3)(c) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(c)(ii) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(e)(ii)(aa)); 2020 c. 1, Sch. 5 para. 1(1)
F26Reg. 9(5) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(d); 2020 c. 1, Sch. 5 para. 1(1)
F27Reg. 9(5A)(5B) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(e) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(e)(ii)(bb)); 2020 c. 1, Sch. 5 para. 1(1)
F28Words in reg. 9(6) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(f); 2020 c. 1, Sch. 5 para. 1(1)
F29Reg. 9(7) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(g); 2020 c. 1, Sch. 5 para. 1(1)
F30Reg. 9(8)(a)(b) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(h)(i); 2020 c. 1, Sch. 5 para. 1(1)
F31Words in reg. 9(8)(c) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(h)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F32Reg. 9(9) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(i); 2020 c. 1, Sch. 5 para. 1(1)
F33Reg. 9(10)(a) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(j)(i); 2020 c. 1, Sch. 5 para. 1(1)
F34Words in reg. 9(10)(c) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(c)(i)
F35Words in reg. 9(10)(d) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(c)(ii)
F36Words in reg. 9(10)(d) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(j)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F37Reg. 9(10A) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(k); 2020 c. 1, Sch. 5 para. 1(1)
F38Reg. 9(11)(a)(ii)(aa) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(l)(i); 2020 c. 1, Sch. 5 para. 1(1)
F39Reg. 9(11)(d) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(l)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F40Reg. 9(13)(aa) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(m)(i); 2020 c. 1, Sch. 5 para. 1(1)
F41Reg. 9(13)(b) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(m)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F42Reg. 9(13)(c) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(m)(iii); 2020 c. 1, Sch. 5 para. 1(1)
F43Word in reg. 9(15) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(n)(i); 2020 c. 1, Sch. 5 para. 1(1)
F44Words in reg. 9(15) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(n)(ii); 2020 c. 1, Sch. 5 para. 1(1)
F45Words in reg. 9(15) inserted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(4)(n)(iii) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 40(e)(iii)); 2020 c. 1, Sch. 5 para. 1(1)
F46Words in reg. 9(19) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(c)(iii)
F47Words in reg. 9(21) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 27(c)(iv)
Commencement Information
I4Reg. 9 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)
10.—(1) Part 4 (approvals) is amended as follows.
(2) In regulation 38 (meaning of “approval”, “group application”, “protected item” and “branch”)—
(a)in the heading, for “, “protected item” and “branch”” substitute “and “protected item””;
[F48(b)in paragraph (1)—
(i)omit “and in Schedules 4 and 5”;
(ii)in sub-paragraph (i) of the definition of “group application”, for “and reinsurance undertakings” substitute “ , reinsurance undertakings, Gibraltarian insurance undertakings and Gibraltarian reinsurance undertakings ”.]
(c)omit paragraph (2).
(3) In regulation 39 (applications: eligibility, process, information and documents)—
(a)in paragraph (3), for “Subject to paragraph (9) an” substitute “ An ”;
(b)in paragraph (8)(a), after “directly applicable regulation” insert “ that forms part of retained EU law ”;
(c)omit paragraph (9);
(d)in paragraph (10)(d), for “capital requirements specified in Sections 4 and 5 of Chapter 6 of Title 1 of the Solvency 2 Directive” substitute “ solvency capital requirement and minimum capital requirement ”.
(4) Omit regulation 40 (additional process: applications from groups and applications to more than one supervisory authority).
(5) In regulation 41 (verification that the Solvency 2 Directive does not apply) for “Article 4(4) of the Solvency 2 Directive”, in both place it occurs, substitute “ the United Kingdom law which implemented Article 4(4) of the Solvency 2 Directive ”.
(6) In regulation 42 (matching adjustment)—
(a)in paragraph (4)(j)(ii) for “rules implementing, and any directly applicable regulation made under, Article 75 of the Solvency 2 Directive” substitute “ rules 2.1 and 2.2 of the Valuation part of the PRA Rulebook ”;
(b)in paragraph (7)—
(i)at the end of sub-paragraph (a) insert “ and ”;
(ii)in sub-paragraph (b) omit “which has not been granted an approval under regulation 50”;
(iii)at the end of sub-paragraph (b) omit “and”;
(iv)omit sub-paragraph (c).
(7) In regulation 43 (volatility adjustment), in paragraph (5)—
(a)in sub-paragraph (a), before “the Solvency 2 Directive” insert “ the United Kingdom law which implemented ”;
(b)in sub-paragraph (b), after “a directly applicable regulation made under the Solvency 2 Directive” insert “ which forms part of retained EU law ”.
(8) In regulation 49 (group applications), for paragraph (2) substitute “ The PRA may approve an application made under paragraph (1). ”
(9) Omit regulations 50 (third-country insurance undertakings: approval of supervision in more than one EEA State), 51 (withdrawal of authorisation for third-country insurance undertakings authorised in more than one EEA State) and 52 (subsidiaries: application of Article 238 and 239 of the Solvency 2 Directive).
(10) Omit Schedules 4 (procedure for an application for a subsidiary to be subject to national law implementing Articles 238 and 239 of the Solvency 2 Directive) and 5 (procedure for group applications).
Textual Amendments
F48Reg. 10(2)(b) substituted (31.12.2020 immediately before IP completion day) by The Gibraltar (Miscellaneous Amendments) (EU Exit) Regulations 2019 (S.I. 2019/680), regs. 1(3), 10(5); 2020 c. 1, Sch. 5 para. 1(1)
Commencement Information
I5Reg. 10 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)