Determination of the Solvency Capital Requirement of the subsidiary undertaking

(1) The Solvency Capital Requirement of a subsidiary undertaking is calculated under subsections (2), (4), and (5). Section 262 remains unaffected.
(2) Where the Solvency Capital Requirement of the subsidiary undertaking is calculated using an internal model approved at group level under section 262, the supervisory authority may set a capital add-on to that undertaking's Solvency Capital Requirement where it is of the view that the risk profile deviates materially from the internal model and the conditions of section 301 are satisfied. Where a capital add-on is inappropriate in an individual case, the supervisory authority that authorised the subsidiary undertaking may require the undertaking to calculate its Solvency Capital Requirement using the standard formula. Before deciding, the supervisory authority consults both the subsidiary undertaking and the other supervisory authorities represented in the college of supervisors under section 283.
(3) Where the Solvency Capital Requirement of the subsidiary undertaking is calculated using the standard formula, and the supervisory authority is of the view that the undertaking's risk profile deviates materially from the assumptions of the standard formula, it may, for as long as its concerns are not addressed, require in an individual case that the undertaking replace a subset of the parameters used in calculating the standard formula with undertaking-specific parameters in calculating the underwriting risk modules, or set a capital add-on in the cases named in section 301. Before deciding, the supervisory authority consults both the subsidiary undertaking and the other supervisory authorities represented in the college of supervisors under section 283.
(4) The college of supervisors, within the scope of its powers, does everything to reach agreement on the proposal of the supervisory authority that authorised the subsidiary undertaking, or on other possible measures. A decision is recognised and implemented by the affected supervisory authorities as binding.
(5) Where the views of the supervisory authority that authorised the subsidiary undertaking and of the group supervisory authority diverge, either body may, within one month of the supervisory authority's proposal, refer the matter to the European Insurance and Occupational Pensions Authority under Article 19 of Regulation (EU) No 1094/2010 and request its assistance. The European Insurance and Occupational Pensions Authority is not referred the matter where a decision by common agreement has been reached within the college of supervisors, or the one-month period has expired.
(6) The supervisory authority that authorised the subsidiary undertaking awaits the decision of the European Insurance and Occupational Pensions Authority. It takes its decision in accordance with the decision of the European Insurance and Occupational Pensions Authority. The supervisory authority issues the decision to the subsidiary undertaking and transmits it to the college of supervisors. The decision of the supervisory authority is recognised and implemented by the affected supervisory authorities as binding.