Non-coverage of the capital requirements of the subsidiary undertaking

(1) Within six months of the finding that the Solvency Capital Requirement is not covered, the subsidiary undertaking must increase its eligible own funds, or reduce its risks, so that the Solvency Capital Requirement is covered again. The supervisory authority that authorised the subsidiary undertaking transmits the recovery plan submitted by the subsidiary undertaking to all supervisory authorities in the college of supervisors without delay. The supervisory authorities in the college of supervisors decide by common agreement, within four months of the finding that the Solvency Capital Requirement is not being met, on the approval of the recovery plan. Where the supervisory authorities cannot agree within this period, the supervisory authority decides on the approval of the recovery plan, taking into account the views of the other supervisory authorities.
(2) Where the supervisory authority finds a deterioration in the financial position of the subsidiary undertaking under section 132(2), it informs the supervisory authorities in the college of supervisors without delay of what measures, in its view, are to be taken. Where this is not a crisis situation, the proposed measures are discussed within the college of supervisors. The college of supervisory authorities, within the scope of its powers, does everything to reach agreement on the proposed measures to be taken. Where the supervisory authorities cannot agree within one month of the notification under the first sentence, the supervisory authority that authorised the subsidiary undertaking decides on the measures, giving due consideration to the views of the other supervisory authorities in the college of supervisors.
(3) Where the Minimum Capital Requirement is not covered, the supervisory authority transmits the short-term finance scheme submitted by the subsidiary undertaking to the college of supervisors without delay, so that, within three months of the finding that the Minimum Capital Requirement is not covered, the eligible own funds are increased, or the risk profile is reduced, so that the Minimum Capital Requirement is covered again. The supervisory authority also informs the college of supervisors of the measures it has initiated to enforce compliance with the Minimum Capital Requirement.
(4) Where the supervisory authority that authorised the subsidiary undertaking and the group supervisory authority disagree as to
1. the approval of the recovery plan, including any extension of the period for restoration, within the four-month period named in subsection (1), or
2. the approval of the proposed measures within the one-month period named in subsection (2), they may refer the matter to the European Insurance and Occupational Pensions Authority and request its assistance under Article 19 of Regulation (EU) No 1094/2010.
(5) The European Insurance and Occupational Pensions Authority is not referred the matter where
1. agreement has been reached within the college of supervisors on the approval of the recovery plan under subsection (1) or on the proposed measure under subsection (2),
2. the periods named in subsection (4) have expired, or
3. a crisis situation under subsection (2), second sentence, has occurred.
(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.