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Group
Support Regime and Group Supervision
from the Solvency ii
Association, the largest Association of Solvency ii Professionals
in the world
Consultation
Paper No. 60
Draft CEIOPS’ Advice for Level 2 Implementing
Measures on Solvency II: Assessment of Group Solvency
ANNEX 1 ON ELIGIBILITY
OF OWN FUNDS
Example on the treatment of minority interests
• A holding owns 100% of A and
80% of B
o No debt in the holding
o Value of A = own funds of A
o Value of B = own funds of B
 
ANNEX 2 ON
ELIGIBILITY OF OWN FUNDS
Steps of the calculations of group available own funds
ANNEX 3: extracts of
the consolidated accounts directive 83/349/EEC
Article 1
1. A Member State shall require any
undertaking governed by its
national law to draw up consolidated accounts and a consolidated
annual report if that undertaking (a parent undertaking):
(a) has a majority of the
shareholders' or members' voting rights in another undertaking (a
subsidiary undertaking); or
(b) has the right to appoint
or remove a majority of the members of the administrative,
management or supervisory body of another undertaking (a subsidiary
undertaking) and is at the same time a shareholder in or member of
that undertaking; or
(c) has the right to exercise
a dominant influence over an undertaking (a subsidiary undertaking)
of which it is a shareholder or member, pursuant to a contract
entered into with that undertaking or to a provision in its
memorandum or articles of association, where the law governing that
subsidiary undertaking permits its being subject to such contracts
or provisions.
A Member
State need not prescribe that a parent undertaking must be a
shareholder in or member of its subsidiary undertaking.
Those
Member States the laws of which do not provide for each contracts or
clauses shall not be required to apply this provision; or
(d) is a
shareholder in or member of an undertaking, and:
(aa) a majority of the members of
the administrative, management or supervisory bodies of that
undertaking (a subsidiary undertaking) who have held office during
the financial year, during the preceding financial year and up to
the time when the consolidated accounts are drawn up, have been
appointed solely as a result of the exercise of its voting rights;
or
(bb) controls alone, pursuant to an agreement with other
shareholders in or members of that undertaking (a subsidiary
undertaking), a majority of shareholders' or members' voting rights
in that undertaking.
The Member States may introduce
more detailed provisions concerning the form and contents of such
agreements.
The Member States shall prescribe at least the arrangements referred
to in (bb) above.
They may make the application of (aa) above dependent upon the
holding's representing 20 % or more of the shareholders' or members'
voting rights. However, (aa) above shall not apply where another
undertaking has the rights referred to in subparagraphs (a), (b) or
(c) above with regard to that subsidiary undertaking.
2. Apart from the cases mentioned in paragraph 1 the Member States
may require any undertaking governed by their national law to draw
up consolidated accounts and a consolidated annual report if:
(a) that undertaking (a parent undertaking) has the power to
exercise, or actually exercises, dominant influence or control over
another undertaking (the subsidiary undertaking); or
(b) that undertaking (a parent undertaking) and another undertaking
(the subsidiary undertaking) are managed on a unified basis by the
parent undertaking.
Article 12
1. Without prejudice to Articles1 to 10, a Member State may require
any undertaking governed by its national law to draw up consolidated
accounts and a consolidated annual report if:
(a) that undertaking and one or more other undertakings with which
it is not connected, as described in Article 1 (1) or (2), are
managed on a unified basis pursuant to a contract concluded with
that undertaking or provisions in the memorandum or articles of
association of those undertakings; or
(b) the administrative, management or supervisory bodies of that
undertaking and of one or more other undertakings with which it is
not connected, as described in Article 1 (1) or (2), consist for the
major part of the same persons in office during the financial year
and until the consolidated accounts are drawn up.
ANNEX 4:
GLOSSARY
“participating undertaking” means
an
undertaking which is
• either a parent undertaking or other undertaking which holds a
participation
• or an undertaking linked with another undertaking by a
relationship as set out in Article 12(1) of Directive 83/349/EEC .
“parent undertaking” means a parent
undertaking within the meaning of Article 1 of Council Directive
83/349/EEC29; (article 13 (12)).
“related undertaking” means :
• either a subsidiary undertaking or other undertaking in which a
participation is held,
• or an undertaking linked with another undertaking by a
relationship as set out in Article 12(1) of Directive 83/349/EEC.
“subsidiary undertaking” means any
subsidiary undertaking within the meaning of Article 1 of Directive
83/349/EEC, including subsidiaries thereof (article 13 (13)).
ANNEX 5: proposed treatment of participations under Solvency II
  
Consultation Paper No. 60
Draft CEIOPS’ Advice for Level 2 Implementing Measures on Solvency
II: Assessment of Group Solvency
1.
Assessment of Group Solvency - Introduction
2.
Level 1 Text
3.
Advice from CEIOPS
4.
Third Countries
5.
Calculation Method
6.
Fungibility and Transferability
7.
Transferability of Own Funds
8.
Calculations
9.
Annex 1 to Annex 5
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