French Insurance Code
In forceI.-In the case provided for in Article L. 356-3, the Autorité de contrôle prudentiel et de résolution may decide, after consultation with the group supervisor and the ultimate parent undertaking at EU level, to also apply group supervision at the level of the ultimate parent undertaking in France. In this case, the Autorité de contrôle prudentiel et de résolution shall notify its decision to the group supervisor and the ultimate parent undertaking at EU level.
Where, in its capacity as group supervisor, the Autorité de contrôle prudentiel et de résolution is notified by another supervisory authority of the latter's decision to also apply group supervision at the level of the ultimate parent insurance or reinsurance undertaking in its State, the authority shall inform the college of supervisors.
II - The provisions of Sections II, III, IV, V and VI of this Chapter apply to the ultimate parent undertaking in France, subject to the following provisions:
a) The Autorité de contrôle prudentiel et de résolution may limit the group supervision of the ultimate parent undertaking in France to all or part of the provisions of Sections III, IV, V and VI of this Chapter ;
b) Where the Autorité de contrôle prudentiel et de résolution decides to apply the provisions of Section III of this Chapter to the ultimate parent undertaking in France, it shall apply to the ultimate parent undertaking in France the method of calculation of solvency adopted at group level by the group supervisor in respect of the ultimate parent undertaking at EU level;
c) Where the Autorité de contrôle prudentiel et de résolution decides to apply the provisions of Section II of this Chapter to the ultimate parent undertaking in France and the ultimate parent undertaking at EU level has obtained authorisation to calculate, on the basis of an internal model, the Solvency Capital Requirement of the group and the Solvency Capital Requirement of the insurance and reinsurance undertakings in the group, the Autorité de contrôle prudentiel et de résolution shall apply the same decision to the ultimate parent undertaking in France;
d) In the case provided for in c, where the Autorité de contrôle prudentiel et de résolution considers that the risk profile of the ultimate parent undertaking in France deviates significantly from the approved internal model, it may decide to impose on that undertaking, as a consequence of the application of that model and for as long as that undertaking does not respond satisfactorily to the requests of the Autorité de contrôle prudentiel et de résolution, an Additional Capital Requirement in respect of the Group Solvency Capital Requirement at the level of that undertaking or, in exceptional circumstances, if such Additional Capital Requirement would be inappropriate, require that undertaking to calculate the Group Solvency Capital Requirement at its level resulting from the application of the standard formula. The Autorité de contrôle prudentiel et de résolution shall notify these decisions to the ultimate parent undertaking in France and to the group supervisor.
Where, in its capacity as group supervisor, the Autorité de contrôle prudentiel et de résolution is notified by a supervisory authority of the latter's decision to impose a capital add-on to the group Solvency Capital Requirement at the level of the ultimate parent undertaking at national level or to require that undertaking to calculate the group Solvency Capital Requirement at its level resulting from the application of the standard formula, the Autorité shall inform the college of supervisors.
