Related credit institutions, investment firms, and financial institutions

(1) In calculating the group solvency of an insurance undertaking that has a participation in a credit institution, an investment firm, or a financial institution, the participating insurance undertakings may apply Method 1 or Method 2, as laid down in Annex I to Directive 2002/87/EC, correspondingly. The consolidation method may be applied only where, in the view of the group supervisory authority, the integrated management and internal control in respect of the undertakings included within the scope of consolidation are adequate. The method chosen must be applied consistently on a permanent basis.
(2) The supervisory authority may, where it is the group supervisory authority, order that a participation named in subsection (1) be deducted from the own funds that may be counted towards the group solvency of the participating undertaking. The participating undertaking may apply for this.