Chapter VI: Specific requirements for groups

The risk management function referred to in Article R. 356-38 of groups which use a partial or full internal model approved in accordance with Articles R. 356-20 to R. 356-20-3 to calculate the group’s solvency covers the tasks of designing, implementing, testing and validating the internal model, monitoring the documentation of this internal model and any changes made to it, analysing the performance of this model and producing summary reports…

The internal risk and solvency assessment referred to in Article L. 356-19 shall cover at least: a) The overall solvency requirement, taking into account the specific risk profile, approved risk tolerance limits and business strategy of the group; b) Ongoing compliance with capital requirements at group level; c) The difference between the group’s risk profile and the assumptions underlying the Solvency Capital Requirement calculated in accordance with Articles R. 356-19…

I.- In order to assess the overall solvency requirement referred to in Article R. 356-41, the participating and parent undertakings referred to respectively in the second and third paragraphs of Article L. 356-2 shall implement procedures which are proportionate to the nature, scale and complexity of the risks inherent in the group’s business and which enable them to identify and assess the risks to which the group is exposed, or…

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…