Section VI: Safeguard measures

Articles in this section · 4

R385-22R385-23R385-24R385-25

Article R385-25

French Insurance CodeIn force
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Updated 7 Nov 2023

I. - When, as part of the results of the stress tests mentioned in Article L. 385-3, a supplementary occupational pension fund presents, for one of the projected financial years and one of the scenarios mentioned in a and b of Article R. 385-4, a negative difference between its solvency margin constituted on one of the dates and the maximum of its minimum required solvency margin and its guarantee fund on the same date, the Autorité de contrôle prudentiel et de résolution shall require a convergence plan designed to ensure that the fund will be in a position to have an adequate solvency margin on the horizon in question, for all the scenarios provided for in Article R. 385-4. This convergence plan is submitted to the Autorité de contrôle prudentiel et de résolution for approval within three months.

In the light of this convergence plan, or if it is not communicated within three months of the application, the Autorité de contrôle prudentiel et de résolution may require the supplementary occupational pension fund to have a higher solvency margin than the minimum margin requirement set out in Article R. 385-2. The total level of solvency margin required may not exceed the sum of the minimum margin requirement at the date of the last statement, any margin requirements in addition to the minimum margin requirement required by the Authority in respect of the previous financial year and the maximum, over the various projection years, the result of dividing by the duration, expressed in number of years, the difference between the maximum of its minimum required solvency margin and guarantee fund, at the end of the projected financial year for the scenario in question, and the solvency margin constituted at that same date for the same scenario.

II. - III of article R. 385-22 and article R. 385-23 apply to the convergence plans required pursuant to I.

III. - When deciding to set an enhanced solvency margin in the cases mentioned in the last paragraph of I, the Autorité de contrôle prudentiel et de résolution shall take into account the information contained in the report on the internal assessment of risks and solvency referred to in Article L. 385-6.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

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