Determination of the method

(1) The solvency of a group headed by a participating insurance undertaking must be calculated on the basis of consolidated accounts in accordance with sections 261 to 264 (consolidation method).
(2) The group supervisory authority may, after consulting the other affected supervisory authorities and the group, determine the use of the method described in section 265 (deduction and aggregation method) or, where use of the consolidation method alone would not be appropriate, a combined application of both methods.