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| European Union - Financial Conglomerates Directive CHAPTER IV: AMENDMENTS TO EXISTING DIRECTIVES Article 22 Amendments to Directive 73/239/EEC Directive 73/239/EEC 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 an insurance 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 an insurance 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 16(2): The available solvency margin shall also be reduced by the following items: (a) participations which the insurance undertaking holds in insurance undertakings within the meaning of Article 6 of this Directive, Article 6 of FirstDirective 79/267/EEC of 5 March 1979 on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance (*), or Article 1(b) of Directive 98/78/EC of the European Parliament and of the Council (**), reinsurance undertakings within the meaning of Article 1(c) of Directive 98/78/EC, insurance holding companies within the meaning of Article 1(i) of Directive 98/78/EC, credit institutions and financial institutions within the meaning of Article 1(1) and (5) of Directive 2000/12/EC of the European Parliament and of the Council (***), investment firms and financial institutions within the meaning of Article 1(2) of Directive 93/22/EEC (****) and of Article 2(4) and (7) of Directive 93/6/EEC (*****); (b) each of the following items which the insurance 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 18(3) of Directive 79/267/EEC, subordinated claims and instruments referred to in Article 35 and Article 36(3) of Directive 2000/12/EC. 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 fourth subparagraph. As an alternative to the deduction of the items referred to in (a) and (b) of the fourth 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 (******). Method 1 (Accounting consolidation) shall only be applied if the competent authority is confident about the level ofintegrated 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 overtime. 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 or to supplementary supervision in accordance with Directive 2002/87/EC, need not deduct the items referred to in (a) and (b) of the fourth 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) of Directive 98/78/EC. (*) OJ L 63, 13.3.1979, p. 1. Directive as last amended by Directive 2002/12/EC of the European Parliament and of the Council (OJ L 77, 20.3.2002, p. 11). (**) OJ L 330, 5.12.1998, p. 1. (***) OJ L 126, 26.5.2000, p. 1. Directive as amended by Directive 2000/28/EEC (OJ L 275, 27.10.2000, p. 37). (****) OJ L 141, 11.6.1993, p. 27. Directive as last amended by Directive 2000/64/EC of the European Parliament and of the Council (OJ L 290, 17.11.2000, p. 27). (*****) OJ L 141, 11.6.1993, p. 1. Directive as last amended by Directive 98/33/EC of the European Parliament and of the Council (OJ L 204, 21.7.1998, p. 29). (******) OJ L 35, 11.2.2003. |
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