Amendments to Directive 79/267/EEC

Directive 79/267/EC (opens EUR-Lex in a new tab) is amended as follows:

1. the following Article shall be inserted:

‘Article 12a

1. The competent authorities of the other Member State involved shall be consulted prior to the granting of an authorisation to a life assurance undertaking, which is:

(a) a subsidiary of an insurance undertaking authorised in another Member State; or

(b) a subsidiary of the parent undertaking of an insurance undertaking authorised in another Member State; or

(c) controlled by the same person, whether natural or legal, who controls an insurance undertaking authorised in another Member State.

2. The competent authority of a Member State involved, responsible for the supervision of credit institutions or investment firms, shall be consulted prior to the granting of an authorisation to a life assurance undertaking, which is:

(a) a subsidiary of a credit institution or investment firm authorised in the Community; or

(b) a subsidiary of the parent undertaking of a credit institution or investment firm authorised in the Community; or

(c) controlled by the same person, whether natural or legal, who controls a credit institution or investment firm authorised in the Community.

3. The relevant competent authorities referred to in paragraphs 1 and 2 shall in particular consult each other when assessing the suitability of the shareholders and the reputation and experience of directors involved in the management of another entity of the same group. They shall inform each other of any information regarding the suitability of shareholders and the reputation and experience of directors which is of relevance to the other competent authorities involved for the granting of an authorisation as well as for the ongoing assessment of compliance with operating conditions.’

2. the following subparagraphs shall be added to Article 18(2):

‘The available solvency margin shall also be reduced by the following items:

(a) participations which the assurance undertaking holds, in

— insurance undertakings within the meaning of Article 6 of this Directive, Article 6 (opens EUR-Lex in a new tab) of Directive 73/239/EEC (opens EUR-Lex in a new tab) (⁽²⁷⁾), or Article 1(b) (opens EUR-Lex in a new tab) of Directive 98/78/EC (opens EUR-Lex in a new tab) of the European Parliament and of the Council (⁽²⁸⁾),

— reinsurance undertakings within the meaning of Article 1(c) (opens EUR-Lex in a new tab) of Directive 98/78/EC (opens EUR-Lex in a new tab),

— insurance holding companies within the meaning of Article 1(i) (opens EUR-Lex in a new tab) of Directive 98/78/EC (opens EUR-Lex in a new tab),

— credit institutions and financial institutions within the meaning of Article 1(1) (opens EUR-Lex in a new tab) and (5) (opens EUR-Lex in a new tab) of Directive 2000/12/EC (opens EUR-Lex in a new tab) of the European Parliament and of the Council (⁽²⁹⁾),

— investment firms and financial institutions within the meaning of Article 1(2) (opens EUR-Lex in a new tab) of Directive 93/22/EEC (opens EUR-Lex in a new tab) (⁽³⁰⁾) and of Articles 2(4) (opens EUR-Lex in a new tab) and 2(7) (opens EUR-Lex in a new tab) of Directive 93/6/EEC (opens EUR-Lex in a new tab) (⁽³¹⁾);

(b) each of the following items which the assurance undertaking holds in respect of the entities defined in (a) in which it holds a participation:

— instruments referred to in paragraph 3,

— instruments referred to in Article 16(3) (opens EUR-Lex in a new tab) of Directive 73/239/EEC (opens EUR-Lex in a new tab),

— subordinated claims and instruments referred to in Article 35 (opens EUR-Lex in a new tab) and Article 36(3) (opens EUR-Lex in a new tab) of Directive 2000/12/EC (opens EUR-Lex in a new tab).

Where shares in another credit institution, investment firm, financial institution, insurance or reinsurance undertaking or insurance holding company are held temporarily for the purposes of a financial assistance operation designed to reorganise and save that entity, the competent authority may waive the provisions on deduction referred to under (a) and (b) of the third subparagraph.

As an alternative to the deduction of the items referred to in (a) and (b) of the third subparagraph which the insurance undertaking holds in credit institutions, investment firms and financial institutions, Member States may allow their insurance undertakings to apply mutatis mutandis methods 1, 2, or 3 of Annex I to 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 (⁽³²⁾). Method 1 (Accounting consolidation) shall only be applied if the competent authority is confident about the level of integrated management and internal control regarding the entities which would be included in the scope of consolidation. The method chosen shall be applied in a consistent manner over time.

Member States may provide that, for the calculation of the solvency margin as provided for by this Directive, insurance undertakings subject to supplementary supervision in accordance with Directive 98/78/EC (opens EUR-Lex in a new tab) or to supplementary supervision in accordance with Directive 2002/87/EC, need not deduct the items referred to in (a) and (b) of the third subparagraph which are held in credit institutions, investment firms, financial institutions, insurance or reinsurance undertakings or insurance holding companies which are included in the supplementary supervision.

For the purposes of the deduction of participations referred to in this paragraph, participation shall mean a participation within the meaning of Article 1(f) (opens EUR-Lex in a new tab) of Directive 98/78/EC (opens EUR-Lex in a new tab).