Changes from plenary report to adopted text

Removed(59) Article 153 is replaced by the following:

Removed‘Article 153 Timeframe and language of information requests

RemovedThe supervisory authority of the host Member State may require the information which it is entitled to request with regard to the business of an insurance undertaking operating in the territory of that Member State either from the supervisory authority of the home Member State of that undertaking ▌. That information shall be supplied within a reasonable period of time in the official language or languages of the host Member State, or in another language accepted by the supervisory authority of the host Member State. ▌’;

Removed(60) the following Article 159a is inserted:

Removed‘Article 159a Joint on-site inspections related to significant cross-border activities

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Removed2. Where an insurance or reinsurance undertaking carrying out significant cross-border activities does not comply with or is likely not to comply with the Minimum Capital Requirement in the following three months, or where there is a ▌non-compliance with the Solvency Capital Requirement,▌ the supervisory authority of the host Member State in which that undertaking has significant cross-border activities, may request the supervisory authority of the home Member State to carry out jointly an on-site inspection of the insurance or reinsurance undertaking, explaining the reasons for such a request.

RemovedThe supervisory authority of the home Member State shall accept ▌the request referred to in the first subparagraph▌.

Removed3. Where the supervisory authority of the home Member State accepts to carry out a joint on-site inspection, it shall invite EIOPA to participate in the joint on-site inspection.

RemovedAfter the conclusion of the joint on-site inspection, the supervisory authorities concerned shall reach joint conclusions, including the recommended supervisory actions, within two months. The supervisory authority of the home Member State shall take into account such joint conclusions when deciding on the adequate supervisory responses.

RemovedWhere the supervisory authorities disagree on the conclusions of the joint on-site inspection, either of them may, within two month following the expiry of the period referred to in the second subparagraph , and without prejudice to the supervisory actions and powers to be taken by the supervisory authority of the home Member State to address the non-compliance with the Solvency Capital Requirement or the non-compliance or likely non-compliance with the Minimum Capital Requirement, refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010. The matter shall not be referred to EIOPA after the expiry of the two-month period referred to in this subparagraph nor after an agreement on joint conclusions has been reached between supervisory authorities in accordance with the second subparagraph.

RemovedIf, within the two-month period referred to in the third subparagraph, any of the supervisory authorities concerned has referred the matter to EIOPA in accordance with Article 19 of Regulation (EU) No 1094/2010, the supervisory authority of the home Member State shall defer the adoption of the final conclusions of the joint onsite inspection and await any decision that EIOPA may take in accordance with Article 19(3) of that Regulation, and shall adopt the conclusions in conformity with EIOPA's decision. All supervisory authorities concerned shall recognise those conclusions as determinative.

Removed4. Where the supervisory authority of the home Member State refuses to carry out a joint on-site inspection, it shall explain in writing the reasons for such refusal to the requesting supervisory authority.

RemovedWhere supervisory authorities disagree with the reasons for refusal, they may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010 within one month after notification of the decision by the supervisory authority of the home Member State. In that case, EIOPA may act in accordance with the powers conferred on it by that Article. ’;

Removed(61) Article 212 is amended as follows:

Removed(a) paragraph 1 is amended as follows:

Removed(i) in point (a), the words ‘Article 12(1) of Directive 83/349/EEC’ are replaced by ‘Article 22(7) of Directive 2013/34/EU’;

Removed(ii) in point (b), the words ‘Article 12(1) of Directive 83/349/EEC’ are replaced by ‘Article 22(7) of Directive 2013/34/EU’;

Removed(iii) point (c) is amended as follows:

Removed– point (i) is replaced by the following:

Removed‘(i) consists of a participating undertaking, its subsidiaries, the entities in which the participating undertaking or its subsidiaries hold a participation and undertakings that are managed by the participating undertaking or its subsidiaries jointly with one or more undertakings that are not part of the group, as well as undertakings linked to each other by a relationship as set out in Article 22(7) of Directive 2013/34/EU and their related undertakings; or’;

Removed– the following point (iii) is added:

Removed‘(iii) consists of a combination of points (i) and (ii);’;

Removed(iv) point (f) is replaced by the following:

Removed‘(f) ‘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, or third-country insurance or reinsurance undertakings, at least one of such subsidiary undertakings being an insurance or reinsurance undertaking; the subsidiary undertakings are mainly insurance or reinsurance undertakings or third-country insurance or reinsurance undertakings where more than 50 % of the parent undertaking’s equity, consolidated assets, revenues, personnel or other indicator considered relevant by the supervisory authority are associated with subsidiaries that are insurance or reinsurance undertakings, thirdcountry insurance or reinsurance undertakings insurance holding companies or mixed financial holding companies;’;

Removed(v) the following point (fa) is inserted:

Removed‘(fa) ‘holding company of third-country insurance and reinsurance undertakings’ means a parent undertaking other than an insurance holding company or a mixed financial holding company within the meaning of Article 2(15) of Directive 2002/87/EC, the main business of which is to acquire and hold participations in subsidiary undertakings, where those subsidiary undertakings are exclusively or mainly third-country insurance or reinsurance undertakings.’;

Removed(b) in paragraph 2, the first subparagraph is replaced by the following:

Removed‘For the purposes of this Title, the supervisory authorities shall also consider as a parent undertaking any undertaking which, in the opinion of the supervisory authorities, effectively exercises a dominant influence over another undertaking, including where this influence is exercised through centralised coordination and control, over the decisions of the other undertaking.’;

Removed(c) the following paragraphs 3, 4, 5 and 6 are added:

Removed‘3. For the purposes of this Title, the supervisory authorities shall also consider that two or more insurance or reinsurance undertakings form a group within the meaning of paragraph 1, point (c), where in the opinion of the supervisory authorities, those undertakings are managed on a unified basis.

RemovedWhere not all the undertakings referred to in the first subparagraph have their head office in the same Member State, Member States shall ensure that only the supervisory authority acting as group supervisor in accordance with Article 247 may conclude, after consulting the other supervisory authorities concerned, that such undertakings form a group based on its opinion that those undertakings are managed on a unified basis.

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Removed5. When identifying a relationship between at least two undertakings referred to in paragraphs 2 and 3, supervisory authorities shall consider all of the following factors:

Removed(a) control or ability of a natural person or an undertaking to influence decisions, including financial ones, of an insurance or reinsurance undertaking, in particular due to the holding of capital or voting rights, representation in the administrative, management or supervisory body, or being among the persons who effectively run an insurance or reinsurance undertaking or who have other key, critical or important functions;

Removed(b) strong reliance of an insurance or reinsurance undertaking on another undertaking or legal person, due to the existence of material financial or non-financial transactions or operations;

Removed(c) evidence of coordination between two or more undertakings of financial decisions, strategies, or processes.

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Removed(62) Article 213 is amended as follows:

Removed(a) in paragraph 2, the introductory wording is replaced by the following:

Removed‘Member States shall ensure that group supervision applies when a group includes any of the following:’;

Removed(b) the following paragraph 2a is inserted:

Removed‘2a. The scope of the group to which group supervision applies pursuant to paragraph 2 of this Article shall be identified in accordance with Article 212.’;

Removed(c) the following paragraphs 3a, 3b and 3c are inserted:

Removed‘3a. In the cases referred to in paragraph 2, point (b), the insurance and reinsurance undertakings shall ensure that all of the following conditions are fulfilled:

Removed(a) the internal arrangements and distribution of tasks within the group are adequate for the purpose of complying with this Title and, in particular, are effective to:

Removed(i) coordinate all the subsidiary undertakings of the insurance holding company or mixed financial holding company including, where necessary, through an adequate distribution of tasks among those undertakings;

Removed(ii) prevent or manage intra-group conflicts; and

Removed(iii) enforce the group-wide policies set by the parent insurance holding company or parent mixed financial holding company throughout the group;

Removed(b) the structural organisation of the group of which the insurance holding company or mixed financial holding company is part does not obstruct or otherwise prevent the effective supervision of the group and its subsidiary insurance and reinsurance undertakings, taking into account, in particular:

Removed(i) the position of the insurance holding company or mixed financial holding company in a multi-layered group;

Removed(ii) the shareholding structure; and

Removed(iii) the role of the insurance holding company or mixed financial holding company within the group.