End of the exemption for a subsidiary undertaking

(1) The rules provided for in sections 269 and 270 do not apply where 1. the condition named in section 267, point 1, is no longer satisfied, 2. the condition named in section 267, point 2, is no longer satisfied and the group does not restore compliance within a reasonable period, or 3. the conditions named in section 267, points 3 and 4, are no longer satisfied. Where, in the case named in the first sentence, point 1, the group supervisory authority decides, after consulting the college of supervisors, no longer to include the subsidiary undertaking in group supervision, it informs the supervisory authority competent for the subsidiary undertaking and the parent undertaking of this without delay.
(2) The parent undertaking is responsible for ensuring that the conditions named in section 267, points 2, 3, and 4, are satisfied at all times. Where a condition is not satisfied, the parent undertaking must inform the group supervisory authority and the supervisory authority competent for supervising the subsidiary undertaking concerned without delay. The parent undertaking must submit a plan to restore compliance with the conditions within a reasonable period. The group supervisory authority reviews at least once a year whether the conditions continue to be satisfied. It also carries out such a review on the application of the affected supervisory authority, where that authority has material doubts as to the continuous fulfilment of these conditions. Where weaknesses or deficiencies are found in this review, the group supervisory authority requires the parent undertaking to submit a plan providing for the elimination of these weaknesses or deficiencies within a reasonable period. Where the group supervisory authority determines, after consulting the college of supervisors, that the plan named in the third and sixth sentences is inadequate or is not implemented on time, the conditions named in section 267, points 2 to 4, are deemed no longer satisfied. The group supervisory authority informs the affected supervisory authority of this without delay.
(3) Where the parent undertaking submits a new application and it is approved, the procedure is again governed by sections 269 and 270.