1. in Article 1, paragraphs 1 and 2 shall be replaced by the following:
"1. Articles 2, 3, 4(1), (3) to (6), 6, 7, 13, 14, 15(3) and (4), 16 to 21, 29 to 35, 37 to 41, 42, 42a to 42f, 43(1), points 1 to 7 and 9 to 14, 45(1), 46(1) and (2), 48 to 50, 50a, 51(1), 51a, 56 to 59, 61 and 61a of Directive 78/660/EEC shall apply to the undertakings mentioned in Article 2 of this Directive, except where this Directive provides otherwise. Articles 46, 47, 48, 51 and 53 of this Directive shall not apply in respect of assets and liabilities that are valued in accordance with Section 7a of Directive 78/660/EEC.
2. Where reference is made in Directives 78/660/EEC and 83/349/EEC to Articles 9, 10 and 10a (balance sheet) or to Articles 22 to 26 (profit and loss account) of Directive 78/660/EEC, such references shall be deemed to be references to Article 6 (balance sheet) or to Article 34 (profit and loss account) of this Directive as appropriate.";
2. Article 4 shall be replaced by the following:
1. This Directive shall apply to the association of underwriters known as Lloyd's. For the purpose of this Directive both Lloyd's and Lloyd's syndicates shall be deemed to be insurance undertakings.
2. By way of derogation from Article 65(1), Lloyd's shall prepare aggregate accounts instead of consolidated accounts required by Directive 83/349/EEC. Aggregate accounts shall be prepared by cumulation of all syndicate accounts.";
3. in Article 6, under "Liabilities", in point E, the title "Provisions for other risks and charges" shall be replaced by "Other provisions";
4. Article 46 shall be amended as follows:
(a) in paragraph 5, the following sentence shall be added: "Member States may permit derogations from this requirement.";
(b) paragraph 6 shall be replaced by the following:
"6. The method(s) applied to each investment item shall be stated in the notes on the accounts, together with the amounts so determined.";
5. the following Article shall be inserted:
"Article 46a
1. Where assets and liabilities are valued in accordance with Section 7a of Directive 78/660/EEC, paragraphs 2 to 6 of this Article shall apply.
2. The investments shown as assets under D shall be shown at their fair value.
3. Where investments are shown at their purchase price, their fair value shall be disclosed in the notes on the accounts.
4. Where investments are shown at their fair value, their purchase price shall be disclosed in the notes on the accounts.
5. The same valuation method shall be applied to all investments included in any item denoted by an arabic numeral or shown as assets under C(I). Member States may permit derogations from this requirement.
6. The method(s) applied to each investment item shall be stated in the notes on the accounts, together with the amounts so determined.";
6. the Annex shall be deleted.