French Insurance Code
In forceI.-Without prejudice to the application of the provisions of Article R. 351-23, original own funds items are included in Tier 1 original own funds for a maximum period of ten years after 1 January 2016, if these items:
a) Were issued before 18 January 2015 ;
b) At 31 December 2015, could be used in accordance with the provisions of Chapter IV of Title III of Book III of the present Code in force at that date, the provisions of Section II of Chapter II of Title I of Book II of the Mutual Code in force at that date and the provisions of R. 931-10-1 to R. 931-10-11-3 of the Social Security Code in force on that date, as a component of the solvency margin, calculated in accordance with the same provisions, up to a maximum of 50% of the available solvency margin or the minimum margin requirement, whichever is the lower;
c) Otherwise, would not be classified as level 1 or level 2 in accordance with article R. 351-23.
II.-Without prejudice to Article R. 351-23, original own funds items are included in Tier 2 original own funds for a maximum of ten years after 1 January 2016 if these items:
a) Were issued before 18 January 2015 ;
b) At 31 December 2015, could be used, in accordance with the provisions of Chapter IV of Title III of Book III in force at that date, as a component of the solvency margin, calculated in accordance with the same provisions, up to a maximum of 25% of the available solvency margin or the minimum margin requirement, whichever is lower.
III - Where an own funds item is considered, as a result of the application of the quantitative limits of these provisions, to be ineligible under the provisions applicable at 31 December 2015, the Autorité de contrôle prudentiel et de résolution shall consider that item to meet the criteria of I and, where applicable, II of this article.
