French Insurance Code
In forceI.-In the event of non-compliance with the Solvency Capital Requirement of a subsidiary referred to in Article R. 356-24 and without prejudice to the provisions of Article L. 352-7, the Autorité de contrôle prudentiel et de résolution shall immediately communicate to the college of supervisors the recovery plan referred to in the second paragraph of Article L. 352-7 which has been submitted to it by that subsidiary.
The Autorité shall endeavour to reach a decision with the supervisory authorities within the college of supervisors on its proposal for approval of the recovery plan, within four months of the first finding of non-compliance with the Solvency Capital Requirement.
In the absence of such a decision, the Autorité shall decide on the recovery plan, taking due account of the opinions and reservations expressed by the other supervisory authorities within the college of supervisors.
II - If the Autorité de contrôle prudentiel et de résolution detects a deterioration in the financial situation of a subsidiary referred to in Article R. 356-24, in accordance with Article L. 352-6, it shall immediately notify the college of supervisors of the measures it proposes to take. Except in the cases of emergency situations referred to in Article 353 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014, it shall discuss the measures to be taken within the college of supervisors.
The Authority shall endeavour to reach a decision with the supervisory authorities within the college of supervisors on those measures within one month of the notification of the measures referred to in the previous paragraph.
Failing such a decision, the Authority shall decide on the measures to be adopted, taking due account of the opinion and reservations expressed by the other supervisory authorities within the college of supervisors.
III - In the event that a subsidiary referred to in Article R. 356-24 fails to meet the Minimum Capital Requirement, and without prejudice to Articles L. 352-8 and R. 352-30, the Autorité de contrôle prudentiel et de résolution shall immediately communicate to the college of supervisors the short-term financing plan referred to in the second paragraph of L. 352-8 submitted by the subsidiary. It shall inform the supervisory authorities within the college of supervisors of any measures taken to enforce the minimum capital requirement at the level of the subsidiary.
IV - The Autorité de contrôle prudentiel et de résolution may refer the matter to the European Insurance and Occupational Pensions Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 where it disagrees with the group supervisor on any of the following points:
a) Approval of the recovery plan or the extension of the recovery period;
b) Approval of the measures proposed pursuant to II.
The Autorité de contrôle prudentiel et de résolution may not refer the matter to the European Insurance and Occupational Pensions Authority when:
a) The four-month period referred to in I or the one-month period referred to in II has expired;
b) The college of supervisors has reached an agreement on the decisions referred to in I or II;
c) In the presence of an emergency situation as referred to in II.
The Autorité de contrôle prudentiel et de résolution shall defer its decision pending any decision by the European Insurance and Occupational Pensions Authority. Its decision shall be consistent with that of the European Insurance and Occupational Pensions Authority.
The Autorité de contrôle prudentiel et de résolution notifies the decision to the subsidiary and forwards it to the supervisory authorities within the college of supervisors.
