Taking into account the proportional share

(1) In calculating group solvency, the proportional share held by the participating undertaking in its related undertakings must be taken into account.
(2) The proportional share within the meaning of subsection (1) means 1. where the consolidation method is applied, the percentages applied in preparing the consolidated accounts, and 2. where the deduction and aggregation method is applied, the share of the subscribed capital held directly or indirectly by the participating undertaking.
(3) Where the related undertaking is a subsidiary undertaking whose own funds are insufficient to comply with its Solvency Capital Requirement, this solvency shortfall must be taken into account in full in the calculation, irrespective of the method used. By way of derogation from the first sentence, the group supervisory authority may permit the solvency shortfall to be taken into account only proportionally, where, in the view of the affected supervisory authorities, the parent undertaking's liability is limited exclusively to the capital share held.
(4) The group supervisory authority determines, after consulting the other affected supervisory authorities and the group, the proportional share to be taken into account where 1. no capital ties exist between some undertakings of a group, 2. a supervisory authority has decided that the direct or indirect holding of voting rights or capital in an undertaking is also to be regarded as a participation, because, in the view of the supervisory authority, a significant influence is actually exercised over that undertaking, or 3. a supervisory authority has decided that an undertaking is the parent undertaking of another undertaking, because, in the view of the supervisory authority, it actually exercises a dominant influence over the other undertaking.