Book III: Companies

Where the equalisation adjustment referred to in Article R. 351-4, the volatility adjustment referred to in Article R. 351-6 or the transitional measures referred to in Articles L. 351-4 and L. 351-5 are applied, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall assess the group’s compliance with the capital requirements referred to in Article R. 356-41 both taking into…

Where an internal model is used to calculate Group solvency, the internal risk and solvency assessment reconciles the internal risk measures with the required solvency capital.

Internal risk and solvency assessment is an integral part of the Group’s business strategy. It is systematically taken into account in the group’s strategic decisions. The participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall carry out the assessment referred to in Article L. 356-19 at least once a year and in the event of any significant change in the group’s…

The Autorité de contrôle prudentiel et de résolution, in its capacity as group supervisor, shall decide on the authorisation provided for in the fifth paragraph of Article L. 356-19 within five months.

Where the participating undertaking or parent undertaking referred to in the second or third paragraph of Article L. 356-2 applies the option provided for in the fifth paragraph of Article L. 356-19, it shall send a translated version of the elements of the single document referred to in the seventh paragraph of Article L. 356-19 which correspond to any subsidiary of the group for which the supervisory authority of the…

The internal control system referred to in 3° of Article L. 356-19 includes at least administrative and accounting procedures, an internal control framework, appropriate reporting arrangements at all levels of the group and a compliance function referred to in Article L. 356-18. It also includes: a) Adequate group solvency mechanisms to identify and measure all material risks incurred and to appropriately match eligible own funds to risks; b) Sound reporting…

The purpose of the compliance function referred to in the second paragraph of Article L. 356-1 is, in particular, to advise the Chief Executive Officer or the Management Board, as well as the Board of Directors or the Supervisory Board of the participating or parent undertaking referred to in the second or third paragraph of Article L. 356-2 respectively, on all matters relating to compliance with the laws, regulations and…

The internal audit function referred to in Article L. 356-18 assesses in particular the adequacy and effectiveness of the Group’s internal control system and the other elements of the Group’s system of governance. This function is carried out objectively and independently of the operational functions. The conclusions and recommendations of the internal audit, together with the proposals for action arising from each of them, are communicated to the Board of…

The purpose of the actuarial function referred to in the second paragraph of article L. 356-18 is, at group level, to coordinate the calculation of prudential technical provisions, to guarantee the appropriateness of the methodologies, underlying models and assumptions used to calculate prudential technical provisions, to assess the adequacy and quality of the data used to calculate these provisions, to supervise this calculation in the cases referred to in article…

Articles 258 to 275 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014 are applicable at group level.