Supervision of the governance system

(1) Part 2, Chapter 1, Division 3, and section 47, points 1, 2, 8, and 9, apply correspondingly at group level. Notwithstanding this, the risk management system, the internal control system, and the reporting system of all undertakings included in group supervision under section 245(2), points 1 and 2, must be implemented in such a way that these systems and the reporting system can be steered and controlled at group level.
(2) Without prejudice to subsection (1), the internal control mechanisms cover at least 1. adequate mechanisms in respect of group solvency, enabling the identification and measurement of all material risks and their coverage with eligible own funds, and 2. proper reporting and accounting procedures for monitoring and steering intra-group transactions and risk concentration.
(3) The participating insurance undertaking, or the insurance holding company, or the mixed financial holding company, must carry out an own risk and solvency assessment at group level, corresponding to section 27. Where group solvency is calculated using the consolidation method, the participating insurance undertaking, or the insurance holding company, or the mixed financial holding company, must demonstrate to the group supervisory authority, in a comprehensible manner, the difference between the sum of the Solvency Capital Requirements of all related insurance undertakings of the group and the group's consolidated Solvency Capital Requirement.
(4) With the consent of the group supervisory authority, the participating insurance undertaking, or the insurance holding company, or the mixed financial holding company, may carry out the own risk and solvency assessment at group level and at the level of the subsidiary undertakings simultaneously, and present the results in a single report for reporting to the supervisory authorities. In this case, the participating insurance undertaking, or the insurance holding company, or the mixed financial holding company, transmits the report to all affected supervisory authorities simultaneously. The obligation of the subsidiary undertakings to ensure compliance with the requirements of section 27 remains unaffected. Before granting consent under the first sentence, the supervisory authority consults the members of the college of supervisors and takes due account of their views.