Changes from plenary report to adopted text

Removed2. By way of derogation from Article 144a, Member States shall ensure that insurance or reinsurance subsidiaries which are in the scope of group supervision in accordance with Article 213(2), points (a) and (b), are exempted from the drawing up and maintaining a liquidity risk management plan at individual level whenever the liquidity risk management plan pursuant to paragraph 1 of this Article covers the liquidity management and liquidity needs of the subsidiaries concerned.

RemovedMember States shall require each individual insurance or reinsurance undertaking benefitting from the exemption pursuant to first subparagraph to submit the parts of the liquidity risk management plan covering the situation of the whole group and their own situation to its supervisory authority.

Removed3. Notwithstanding paragraph 2, supervisory authorities may require an insurance or reinsurance subsidiary to draw up and maintain a liquidity risk management plan at individual level whenever they detect a specific liquidity vulnerability or the liquidity management plan at group level does not include appropriate information which the supervisory authority having authorised the subsidiary requires comparable undertakings to provide for the purpose of monitoring their liquidity position.

Removed4. In order to ensure consistent application of this Article, EIOPA shall develop regulatory technical standards to further specify the content and frequency of update of the liquidity risk management framework plan at group level.

RemovedEIOPA shall submit those draft regulatory technical standards to the Commission by [PO please add date = 12 months after entry into force].

RemovedPower is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.

RemovedArticles 144b and 144c shall apply mutatis mutandis at the level of the participating insurance or reinsurance undertaking, insurance holding company or mixed financial holding company.’;

Removed(81) in Article 252, first paragraph, the words ‘a credit institution as defined in Directive 2006/48/EC or an investment firm as defined in Directive 2004/39/EC’ are replaced by the words ‘a credit institution as defined in Regulation (EU) No 575/2013 or an investment firm as defined in Directive 2014/65/EU’;

Removed(82) in Article 254, the following paragraph 3 is added:

Removed‘3. The participating insurance and reinsurance undertaking, the insurance holding company and the mixed financial holding company shall submit to the group supervisor the information referred to in this Article on an annual basis within 20 weeks after the undertaking's financial year end, and, when the information referred to in this Article is required on quarterly basis, within 11 weeks after the end of each quarter.’;

Removed(83) Article 256 is amended as follows:

Removed(a) paragraph 1 is replaced by the following:

Removed‘1. Member States shall require participating insurance and reinsurance undertakings, insurance holding companies and mixed financial holding companies to disclose publicly, on an annual basis, a report on solvency and financial condition at the level of the group. This report shall contain information about the group addressed to other market participants, as referred to in Article 51(1b). Articles 51, 53, 54 and 55 shall apply mutatis mutandis.

RemovedMember States shall ensure that the participating insurance and reinsurance undertakings, the insurance holding company or the mixed financial holding company disclose the information referred to in this Article on an annual or less frequent basis within 24 weeks after the undertaking's financial year end.’;

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

Removed‘(b) the information for any of the subsidiaries within the group, which information must be individually identifiable, including both parts of the solvency and financial condition report, and must be disclosed in accordance with Articles 51, 53, 54 and 55.’;

Removed(c) paragraph 4 is replaced by the following:

Removed‘4. The Commission shall adopt delegated acts in accordance with Article 301a further specifying the information which must be disclosed in the single solvency and financial condition report referred to in paragraph 2 of this Article and the solvency and financial condition report at the level of the group referred to in paragraph 1 of this Article.’;(d) in paragraph 5, the first subparagraph is replaced by the following:

Removed‘5. In order to ensure uniform conditions of application in relation to the single and group solvency and financial condition report, EIOPA shall develop draft implementing technical standards on the procedures and templates for, and the means of, disclosure of the single and group solvency and financial report as laid down in this Article.’;

Removed(84) the following Articles 256b and 256c are inserted:

Removed‘Article 256b Group regular supervisory report

Removed1. Member States shall require participating insurance and reinsurance undertakings, insurance holding companies and mixed financial holding companies to submit to the supervisory authorities, on an annual basis, a regular supervisory report at the level of the group. Article 35(5a) shall apply mutatis mutandis.

RemovedMember States shall ensure that insurance and reinsurance undertakings submit the information referred to in this Article on an annual or less frequent basis in 24 weeks after the undertaking's financial year end.

Removed1a. Where the deadline referred to in Article 35b(3) has been extended in accordance with Article 35b(4), the Commission, after having consulted EIOPA, may, in accordance with Article 301a, adopt delegated acts amending this Directive, in order to temporarily change the deadline laid down in paragraph 1 of this Article, provided that the change is necessary due to sanitary emergencies, natural catastrophes or other extreme events, which prevent participating insurance and reinsurance undertakings, insurance holding companies and mixed financial holding companies from submitting the information within the specified deadlines.

Removed1b. At the request of at least one Member State, the Commission shall consult EIOPA with a view to determining whether the conditions for a temporary change of the submission deadline laid down in paragraph 1 have been fulfilled.

Removed2. A participating insurance or reinsurance undertaking, an insurance holding company or a mixed financial holding company may, subject to the agreement of the supervisory authorities concerned, provide a single regular supervisory report which shall comprise the following:

Removed(a) the information at the level of the group which shall be reported in accordance with paragraph 1;

Removed(b) the information for any of the subsidiaries within the group, which shall be individually identifiable, shall be reported in accordance with Article 35(5a) and it shall not result in less information than the one it would be provided by insurance and reinsurance undertakings submitting regular supervisory report in accordance with Article 35(5a).

RemovedBefore granting the agreement in accordance with the first subparagraph, the group supervisor shall consult and duly take into account any views and reservations of the members of the college of supervisors. The non-agreement by the national supervisory authorities concerned shall be duly justified. If the single regular supervisory report in accordance with paragraph 2 is approved by the college of supervisors, each individual insurance and reinsurance undertaking shall submit the single regular supervisory report to its supervisory authority. Each supervisory authority shall have the power to supervise the specific part of the single regular supervisory report to the relevant subsidiary. If the single regular supervisory report submitted is not satisfactory for the national supervisory authorities, such approval can be withdrawn.

Removed4. Where the report referred to in paragraph 2 fails to include information which the supervisory authority that authorised a subsidiary within the group requires comparable undertakings to provide, and where the omission is material, the supervisory authority concerned shall have the power to require the subsidiary concerned to report the necessary additional information.

Removed5. Where the supervisory authority having authorised a subsidiary within the group identifies any non-compliance with Article 35(5a) or requests any amendment or clarification regarding the single regular supervisory report it shall also inform the college of supervisors and the group supervisor shall submit to the participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company the same request.

Removed6. The Commission shall adopt delegated acts in accordance with Article 301a further specifying the information which shall be reported.

Removed1. Member States shall require a participating insurance or reinsurance undertaking, an insurance holding company or a mixed financial holding company of a group, to be subject to an audit requirement for the consolidated balance sheet disclosed as part of the group solvency and financial condition report or as part of the single solvency and financial condition report.

Removed2. A separate report, including the identification of the type of assurance as well as the results of the audit, prepared by the audit firm shall be submitted to the group supervisory authority together with the solvency and financial condition report or the single solvency and financial condition report by the participating insurance or reinsurance undertakings, the insurance holding company or the mixed financial holding company.

Removed3. Where there is a single solvency and financial condition report, the audit requirements imposed on a related insurance or reinsurance undertaking shall be complied with and the report referred to in Article 51a(4) shall be submitted to the supervisory authority of that undertaking by the participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company.

Removed4. Article 51a shall apply mutatis mutandis.’;

Removed(85) Article 257 is replaced by the following:

Removed‘Article 257 Fit and proper requirements for persons who effectively run an insurance holding company or a mixed financial holding company or who have other key functions

RemovedMember States shall require those who effectively run the insurance holding company or the mixed financial holding company, and where applicable, the persons who are responsible for other key functions, to be fit and proper to perform their duties.

Removed(86) Article 258 is amended as follows:

Removed(a) paragraph 2 is replaced by the following:

Removed‘2. Supervisory authorities shall be given all supervisory powers to take measures in relation to insurance holding companies and mixed financial holding companies that are necessary to ensure that groups to which group supervision is applied in accordance with Article 213(2), points (a), (b) and (c), comply with all the requirements laid down in this Title. Those powers shall include the general supervisory powers referred to in Article 34.

RemovedWithout prejudice to their provisions on criminal law, Member States shall impose sanctions on, or adopt measures relating to, insurance holding companies and mixed financial holding companies which infringe laws, regulations or administrative provisions brought into force to transpose this Title, or in relation to the person effectively managing those companies. The supervisory authorities shall cooperate closely to ensure that such sanctions or measures are effective, in particular where the central administration or main establishment of an insurance holding company or mixed financial holding company is not located in the same Member State as its head office.’;

Removed(b) the following paragraphs 2a and 2b are inserted:

Removed‘2a. Where the group supervisor has established that the conditions set out in Article 213(3a) are not met or have ceased to be met, the insurance holding company or mixed financial holding company shall be subject to appropriate supervisory measures to ensure or restore, as the case may be, continuity and integrity of group supervision and to ensure compliance with the requirements laid down in this Title. In the case of a mixed financial holding company, the supervisory measures shall, in particular, take into account the effects on the financial conglomerate as a whole as well as on its related regulated undertakings.

Removed2b. For the purposes of paragraphs 1 and 2a of this Article, Member States shall ensure that the supervisory measures which may be applied to insurance holding companies and mixed financial holding companies include, at least, the following:

Removed(a) suspending the exercise of voting rights attached to the shares of the subsidiary insurance or reinsurance undertaking held by the insurance holding company or mixed financial holding company;

Removed(b) issuing injunctions, sanctions or penalties against the insurance holding company, the mixed financial holding company or the members of the administrative, management or supervisory body of those companies;

Removed(c) giving instructions or directions to the insurance holding company or mixed financial holding company to transfer to its shareholders the participations in its subsidiary insurance and reinsurance undertakings;

Removed(d) designating on a temporary basis another insurance holding company, mixed financial holding company or insurance or reinsurance undertaking within the group as responsible for ensuring compliance with the requirements set out in this Title;

Removed(e) restricting or prohibiting distributions or interest payments to shareholders;

Removed(f) requiring insurance holding companies or mixed financial holding companies to divest from or reduce holdings in insurance or reinsurance undertakings or other related undertakings referred to in Article 228(1);

Removed(g) requiring insurance holding companies or mixed financial holding companies to submit a plan on return, without delay, to compliance.

RemovedThe group supervisor shall consult other supervisory authorities concerned and EIOPA before taking any of the measures referred to in the first subparagraph, where those measures affect undertakings which have their head offices in more than one Member State.’;

Removed(87) Article 262 is amended as follows:

Removed(a) paragraph 2 is replaced by the following:

Removed‘2. Member States shall allow their supervisory authorities to apply other methods which ensure appropriate supervision of the insurance and reinsurance undertakings belonging to a group within the meaning of Article 212, and to which group supervision applies in accordance with Article 213(2), point (c). Those methods shall be agreed by the group supervisor, identified in accordance with Article 247, after consulting the other supervisory authorities concerned.

RemovedThe methods referred to in the first subparagraph shall allow the objectives of the group supervision as specified in this Title to be achieved. Those objectives shall include the following:

Removed(a) preserving the capital allocation and the composition of own funds of insurance and reinsurance undertakings and preventing material intra-group creation of capital where such intra-group capital creation is financed out of the proceeds of debt or other financial instruments that do not qualify as own funds items by the parent company;

Removed(b) assessing and monitoring the risks stemming from undertakings both inside and outside the Union, and limiting the risk of contagion from those undertakings and from other non-regulated undertakings to insurance and reinsurance undertakings within the group, and to the subgroup the ultimate parent undertaking of which is an insurance or reinsurance undertaking, an insurance holding company or a mixed financial company that has its head office in the Union, as referred to in Article 215, where such a subgroup exists.