Scope of application of group supervision

(1) Insurance undertakings belonging to a group are subject, in addition to individual supervision, to supervision at group level in accordance with the provisions of this Part. Insofar as this Part does not determine otherwise, the provisions on the individual supervision of insurance undertakings continue to apply to these undertakings.
(2) Group supervision applies to 1. insurance undertakings that are participating undertakings in at least one insurance undertaking or at least one third-country insurance undertaking, 2. insurance undertakings whose parent undertaking is a) an insurance holding company, or b) a mixed financial holding company with its registered office in a member or contracting state, 3. insurance undertakings whose parent undertaking is a) an insurance holding company, b) a mixed financial holding company, or c) an insurance undertaking with its registered office in a third country, and 4. insurance undertakings whose parent undertaking is a mixed insurance holding company.
(3) Where the participating insurance undertaking, or the insurance holding company, or the mixed financial holding company with its registered office in a member or contracting state, is a related undertaking of a supervised undertaking or of a mixed financial holding company that is subject to supplementary supervision under Article 5(2) of 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 and amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/12/EC of the European Parliament and of the Council (OJ L 35, 11.2.2003, p. 1), or is itself such an undertaking or company, the group supervisory authority may, in the cases named in subsection (2), points 1 and 2, after consulting the other affected supervisory authorities, dispense with monitoring risk concentration under section 273, monitoring intra-group transactions under section 274, or both, at the level of the participating insurance undertaking or the insurance holding company or mixed financial holding company.
(4) Where a mixed financial holding company is subject to equivalent provisions under Directive 2009/138/EC and Directive 2002/87/EC, in particular as regards risk-based supervision, the group supervisory authority may, after consulting the other affected supervisory authorities, apply only the corresponding provisions of Directive 2002/87/EC at the level of the mixed financial holding company. Where the mixed financial holding company is subject to equivalent provisions under Directive 2009/138/EC and Directive 2006/48/EC, the group supervisory authority may, in agreement with the consolidating supervisory authority for the banking and securities sector, apply only the provisions of the directive relating to the most significant financial sector under Article 3(2) of Directive 2002/87/EC.
(5) The provisions of this Part do not apply where a group of undertakings subject to insurance supervision arises exclusively through the inclusion of small insurance undertakings, death benefit funds, pension funds, or Pensionsfonds.