Ultimate parent undertaking at national level

(1) Where the participating insurance undertaking named in section 245(2), point 1, or the insurance holding company or mixed financial holding company named in section 245(2), point 2, has its registered office domestically, and the ultimate parent undertaking named in section 247 has its registered office in another member or contracting state, the supervisory authority may, after consulting the group supervisory authority and this ultimate parent undertaking, order that the ultimate parent insurance undertaking at national level, or the ultimate parent company at national level that is an insurance holding company or a mixed financial holding company, is subject to group supervision. In this case, the supervisory authority gives reasons for its decision both to the group supervisory authority and to the ultimate parent undertaking at the level of the member or contracting states. The group supervisory authority informs the college of supervisors (section 283) in accordance with Article 248(1)(a) of Directive 2009/138/EC. Subject to subsections (2) to (6), sections 250 to 287, and section 293(1), section 298(1) and (2), section 305(1), point 1, and section 306(1), first sentence, point 1, apply correspondingly.
(2) The supervisory authority may determine a limitation of group supervision to individual provisions of sections 250 to 275 in respect of the ultimate parent undertaking at national level.
(3) Insofar as the supervisory authority applies sections 250 to 272 to the ultimate parent undertaking at national level, the method chosen by the group supervisory authority under section 252 for the ultimate parent undertaking named in section 247 at the level of the member or contracting states is recognised and applied by the supervisory authority as binding.
(4) Insofar as the supervisory authority applies sections 250 to 272 to the ultimate parent undertaking at national level, and the ultimate parent undertaking named in section 247 at the level of the member or contracting states has received authorisation under section 262 or section 265(5) to calculate the group Solvency Capital Requirement and the Solvency Capital Requirement for the group's insurance undertakings using an internal model, this decision is recognised and implemented by the supervisory authority as binding. Where, in such a case, the supervisory authority is of the view that the internal model approved at the level of the member or contracting states deviates materially from the risk profile of the ultimate parent undertaking at national level, it may, where the undertaking does not adequately address its concerns, require a capital add-on for that undertaking on the group Solvency Capital Requirement calculated using such a model. Where such a capital add-on is exceptionally not appropriate, the supervisory authority may require the undertaking to calculate its group Solvency Capital Requirement using the standard formula. The supervisory authority gives reasons for such decisions both to the undertaking and to the group supervisory authority. The group supervisory authority informs the college of supervisors in accordance with Article 248(1)(a) of Directive 2009/138/EC.
(5) Insofar as the supervisory authority applies the provisions of sections 250 to 272 to the ultimate parent undertaking at national level, that undertaking may not be granted authorisation under section 267 or section 272 to apply sections 269 and 270 to one of its subsidiary undertakings.
(6) An order under subsection (1) may not be made or maintained where the ultimate parent undertaking at national level is a subsidiary undertaking of the ultimate parent undertaking named in section 247 at the level of the member or contracting states, and that undertaking has received authorisation under section 268 or section 270 to apply sections 269 and 270 to the subsidiary undertaking.