Key Benefits:
Publics concerned: regulated insurance and reinsurance companies, insurance group companies governed by the insurance codeMutuals and unions governed by Book II of the Code of Mutuality, unions referred to in Article L. 111-4-2 of the same code and institutions of foresight and their unions governed by Book 9 of the Code of Social Security and Societies of Insurance Group of Social Welfare governed by the same code.
Purpose: Administrative, prudential and accounting rules for insurance and reinsurance organizations.
Entry into force: the text comes into force on January 1, 2016.
Notice: the decree includes the regulatory measures necessary to transfer in French law the Directive 2009/138/EC of the European Parliament and the Council on access to insurance and reinsurance activities and their exercise (solvability II) and carry out various measures to adapt the rules applicable to insurance and reinsurance organizations governed by the insurance code, code of mutuality and Title 3 and Book 9 of the Social Security Code. The Order makes accounting provisions consistent with the statutory provisions that entrust the Authority with accounting standards (ANC) to define the requirements for accounting, social standards, insurance and reinsurance transactions. It removes the so-called "capitalization reserve" mechanism for non-life insurance organizations and reinsurers. It creates the possibility for mutual insurance companies governed by the insurance code appoint a managing director. It modernizes the governance of welfare institutions and unions governed by title 3 and Book 9 of Social Security, consistent with the provisions introduced in the Trade code by Law No. 2001-420 of 15 May 2001 relating to new economic regulations, including the obligation to appoint a delegated director general. He sends back to insurance code, the prudential regime and the accounting regime for mutual unions and unions governed by Book II of the Code of Mutuality, as well as foreseeance institutions and unions governed by Title 3 and Book 9 of Social Security. Finally, the decree proceeds with adaptations to make applicable all the provisions of the insurance code Mayotte.
References: this decree is implemented in accordance with the articles created by theOrder No. 2015-378 of 2 April 2015 transposing Directive 2009/138/EC of the European Parliament and the Council on access to insurance and reinsurance activities and their exercise (solvency II). The insurance code, monetary and financial code, code of mutuality and Social Security Code Amended by this decree can be consulted in their editorials from this amendment on the website Légifrance (http://www.legifrance.gouv.fr).
The Prime Minister,
On the report of the Minister of Finance and Public Accounts and the Minister of Social Affairs, Health and Women's Rights,
Having regard to Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Professional Pension Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/79/EC;
In view of the Commission's delegated regulation (EU) No. 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and the Council on access to insurance and reinsurance activities and their exercise (solvency II);
Having regard to Directive 2003/41/EC of the European Parliament and the Council of 3 June 2003 on the activities and supervision of professional pension institutions;
Considering Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on access to insurance and reinsurance activities and their exercise (solvability II), last modified by Directive 2014/51/EU of the European Parliament and the Council of 16 April 2014 amending the directives 2003/71/EC and 2009/138/EC and the regulations (EC) no 1060/2009, (EU) no 1094/2010 and (EU)
Vu le insurance code ;
Vu le Trade code ;
Vu le General Tax Code ;
Vu le monetary and financial code ;
Vu le code of mutuality ;
Vu le Rural Code and Maritime Fishing ;
Vu le Social Security Code ;
Vu le Labour code ;
Vu la Act No. 2000-321 of 12 April 2000 amended on the rights of citizens in their relations with administrations, including article 21 in its drafting Act No. 2013-1005 of 12 November 2013 enabling the Government to simplify the relations between administration and citizens;
Vu la Act No. 2014-873 of 4 August 2014 for real equality between women and men, including article 67;
See?Order No. 86-1134 of 21 October 1986 amended on the interest and participation of employees in the company's results and shareholding;
See?Order No. 2006-344 of 23 March 2006 amended on additional occupational pensions;
See?Order No. 2015-378 of 2 April 2015 transposing Directive 2009/138/EC of the European Parliament and the Council of 25 November 2009 on access to insurance and reinsurance activities and their exercise (Solvability II);
Vu le Decree No. 2015-204 of 23 February 2015 relating to mutualist or parity certificates;
Having regard to the Advisory Committee on Financial Legislation and Regulation dated 22 January 2015;
Considering the opinion of the Autorité des normes comptables dated 5 March 2015;
Having regard to the opinion of the Higher Council of the mutuality of 22 April 2015;
Considering the referral of Mayotte's General Council dated 25 February 2015;
The State Council (Finance Section) heard,
Decrete:
Title I of Book I of the Insurance Code is thus modified:
1° In R. 111-1, at 1° and 2°, the words: "account units of the European Economic Community" are replaced by the word "euro";
2° Section R. 112-2 is replaced by the following provisions:
"Art. R. 112-2. - The provisions of the first two paragraphs of Article L. 112-2 are not applicable to contracts guaranteeing the risks defined in the second paragraph of Article L. 111-6. »
Title I of Book III of the same code is supplemented by a section 5 as follows:
“Section 5
“Judicial and conciliation procedures
"Art. R. 310-23. - When a liquidation procedure is opened pursuant to Article L. 310-25, the liquidator shall promptly and individually inform by a written note each known creditor who has his habitual residence, domicile or head office in a Member State other than France.
"The contents and format of the note are fixed by order of the Minister responsible for the economy. »
I.-Chapter I of title II of book III of the same code is amended as follows:
1° After article R. 321-1, an article R. 321-1-1 is inserted as follows:
"Art. R. 321-1-1.-Each activity carried out by an insurance company practicing both the risks mentioned in 1° and 2° of Article L. 310-1 is managed separately, organized so that life insurance activity and non-life insurance activity are separated.
"When a non-life insurance company has financial, commercial or administrative ties with a life insurance company, the Autorité de contrôle prudentiel et de résolution ensures that the accounts of the companies concerned are not distorted by agreements between these companies or by any arrangement likely to influence the distribution of costs and revenues. » ;
2° In the third paragraph of Article R. 321-3, after the words: "the primary risk is only assistance" are inserted the words: "provided to persons in difficulty during travel, absence of their domicile or habitual residence";
3° In the second paragraph of articles R. 321-4 and R. 321-5-3, the words "from deposit" are replaced by the words "from reception";
4° After article R. 321-4, an article R. 321-4-1 is inserted as follows:
"Art. R. 321-4-1.-Any decision to grant or refuse administrative approval is notified by the Autorité de contrôle prudentiel et de résolution to the European Insurance and Professional Pension Authority. » ;
5° After article R. 321-5-3, an article R. 321-5-4 is inserted as follows:
"Art. R. 321-5-4.-Any decision to grant or refuse administrative approval is notified by the Autorité de contrôle prudentiel et de résolution to the European Insurance and Professional Pension Authority. » ;
6° In R. 321-16, the words "five exercises" are replaced by the words "three exercises" and the reference: "L. 321-9" is replaced by the reference: "L. 329-1";
7° Articles R. 321-17-1 and R. 321-19 to R. 321-21 are repealed;
8° In R. 321-26, the words "five exercises" are replaced by the words "three exercises";
9° Section R. 321-32 is replaced by the following provisions:
"Art. R. 321-32.-I.-Any person subject to the control of the Authority of prudential control and resolution under the B of I of Article L. 612-2 of the monetary and financial code, with the exception of the enterprises mentioned in the 1st of the III of Article L. 310-1-1 of this code, and intending to open a branch or exercise activities in the free provision of services, in accordance with the provisions
"If the Authority considers that the conditions referred to in the article in L. 321-11 are met, it shall communicate to the competent authorities of the host Member State the documents referred to in the previous paragraph with the exception of those relating to the competence and honesty of the general agent with respect to the branches. It also transmits to the competent authorities of the host Member State a certificate certifying that the company has the required solvency capital and the required minimum capital.
"The Autorité de contrôle prudentiel et de résolution notifies communications provided in the second paragraph by the applicant, who may then commence operations within the time and conditions set by a decree of the Minister responsible for the economy.
"The deadline for communication to the authorities of the host Member State, the information mentioned in the second paragraph, is short from the receipt by the Authority of prudential control and resolution of a complete file. This deadline is three months for a branch and one month application for a free service exercise.
"II.-Any proposed amendments to the nature or conditions for the exercise of activities in freedom of establishment or in the free provision of services authorized in accordance with the provisions of Article L. 321-11 shall be notified to the Authority for prudential control and resolution, together with those of the documents mentioned in the first paragraph of the I that are affected by the draft amendment. This notification is made at least one month before making the change.
"When the person operates in a free-of-charge regime, he or she also communicates his or her proposed amendment to the competent authorities of the Member State of the European Union in the territory of which his or her branch is located.
"If the Authority considers that the conditions referred to in Article L. 321-11 are still fulfilled, it shall communicate to the competent authorities of the member State concerned, within one month of the notification referred to in the previous paragraph, the documents referred to in that same paragraph, with the exception, if any, of the documents relating to the competence and the honesty of the general representative in respect of the branches, as well as to the attestation referred to in paragraph I. She advises the company concerned of this communication. The proposed amendment may intervene upon receipt of this notice by the applicant.
"III.-When the Autorité de contrôle prudentiel et de résolution refuses to communicate to the competent authorities of the Member State concerned the information referred to in the second paragraph of I and II, it shall notify the applicant and shall inform the applicant, within the time limits mentioned in the third paragraph of I and the second paragraph of II, of the reasons for such refusal. The Autorité de contrôle prudentiel et de résolution shall, where appropriate, communicate to the European Commission the number and type of communications refused under this paragraph.
"IV.-When the Autorité de contrôle prudentiel et de résolution required a recovery strategy under the conditions mentioned in Article L. 612-32 of the monetary and financial code, it refrains from communicating to the competent authorities of the Member State concerned the information referred to in the second paragraph of I and II as long as it considers that the applicant's situation is not restored. » ;
10° After the article R. 321-32, a section 6 is inserted as follows:
“Section 6
" Provisions relating to the exercise of certain co-insurance transactions by insurance companies
"Art. R. 321-33.-To allow insurance companies that are parties to a co-insurance transaction to benefit from the exemption provided for in section L. 321-12, the transaction must meet the following criteria:
« 1° The risk is covered by a single contract with a global premium for the same duration;
« 2° Insurers are not mutually supportive;
« 3° One of the insurers is designated as an aperitor: the aperitor must take full responsibility for the managerial role of the insurer and, in particular, to determine the insurance and pricing conditions.
"Art. R. 321-34.-For insurance companies benefiting from the exemption provided for in Article L. 321-12, the technical provisions defined in Title IV of Book III, which each of these companies must constitute for the corresponding co-insurance transactions, are at least equal to the amount calculated by the aperitor, according to the rules of the Member State in which the latter is established.
"Art. R. 321-35.- Insurance companies with their head office in France and participating in the operations referred to in Article L. 321-12 as aperitors transmit to the other insurers participating in these operations statistical elements indicating the importance of the European co-insurance operations in which they participate. »
II.-Chapter II of Book III of the Insurance Code is amended as follows:
1° In I of Article R. 322-11-1:
(a) At 1°, after the words: "The fraction of voting rights" are inserted the words: "or shares of capital";
(b) In the second sentence of the fourth paragraph, after the words: "voting rights" are inserted the words: "or actions";
(c) In the fifth paragraph, the words "of the Committee" are replaced by the words "of the Authority";
(d) In the sixth paragraph, the words "the Committee" are replaced by the words "the Authority";
(e) In the seventh paragraph, the words: "the European Community" are replaced by the words: "the European Union" and after the words: "on the subject company" are inserted the words: "and when the undertaking that acquires an interest is subject to the control of the same authority as the undertaking that ceases to hold an interest. » ;
2° Section R. 322-11-2 is replaced by the following provisions:
"Art. R. 322-11-2.-I.-The Autorité de contrôle prudentiel et de résolution acknowledges receipt in writing within two working days after receipt of the notification of an acquisition or extension of participation referred to in Article I R. 322-11-1.
"The Autorité de contrôle prudentiel et de résolution has a period of sixty working days, from the date of receipt of the notification, to conduct the evaluation of the notification. The Authority shall inform the applicant of the expiry date of the assessment period at the time of the issuance of the acknowledgement of receipt.
"The Authority may set a maximum time limit for the conclusion of the planned take or extension of participation and, if necessary, extend it.
"When the Authority has received several notifications of transactions concerning the same company, it conducts their joint examination under conditions ensuring equal treatment between candidates.
"II.-The Autorité de contrôle prudentiel et de résolution may, if applicable, during the evaluation period, and no later than the fiftieth working day of the evaluation period, request in writing further information from the applicant. She acknowledges receipt in writing of the transmission of this additional information by the applicant.
"The assessment period is suspended for a period not exceeding twenty working days, between the date of the application and the receipt of the applicant's response, which may be extended to thirty working days, where one of the following two conditions is met:
« 1° The acquirer candidate is established outside the European Union or is regulated separately from European regulations;
« 2° The recipient candidate is a natural or legal person of the European Union who is not subject to European regulations relating to insurance, reinsurance companies, credit institutions, portfolio management companies or other investment companies.
"The Authority may request additional information or clarifications. However, these requests cannot result in a further extension of the evaluation period.
"III.-When conducting the assessment under I, the Authority shall, for the purpose of ensuring that the undertaking under the proposed operation has a sound and prudent management and taking into account the likely influence of the applicant acquiring on that undertaking, the appropriate character of the applicant acquiring and the financial strength of the proposed operation, applying the following criteria:
« 1° The reputation of the winning candidate;
« 2° The reputation and experience of any person who, as a result of the proposed operation, will be responsible for the activities of the company within the meaning of Article L. 321-10;
« 3° The financial strength of the acquirer candidate, particularly in view of the type of activities carried out and envisaged in the undertaking covered by the proposed transaction;
« 4° The ability of the company to meet and continue to meet the prudential obligations of this code and monetary and financial code which are applicable to it, and in particular whether the group to which it will belong has a structure that allows to exercise effective control, to effectively exchange information between control authorities and to determine the sharing of responsibilities between control authorities;
« 5° The existence of reasonable grounds to suspect that an operation or attempt to bleach money or finance terrorism is in progress or has taken place in relation to the proposed transaction or that this operation may increase the risk of the transaction.
" IV.-Before any decision, the Autorité de contrôle prudentiel et de résolution shall consult without delay the competent authorities referred to in articles L. 321-1, L. 321-1-1 and L. 321-1-2, of which the applicant acquires, in order to obtain any essential or relevant information for the assessment referred to in I, where one of the following conditions is met:
« 1° The recipient candidate is an insurance or reinsurance company, a credit institution, a portfolio management company or another registered investment company in a Member State of the European Union or approved in a financial sector other than that in which the acquisition is being considered;
« 2° The recipient candidate is the parent company of an entity referred to in 1°;
« 3° The winning candidate is a natural or legal person controlling an entity referred to in 1°.
"The decision taken by the Autorité de contrôle prudentiel et de résolution on this operation mentions the opinions or reservations formulated, if any, by the competent authorities consulted.
"V.-The Autorité de contrôle prudentiel et de résolution can only oppose the taking or extension of the intended participation if there are reasonable grounds to do so on the basis of the criteria set out in III, or if the information provided by the candidate acquires, pursuant to the fifth paragraph of Article R. 322-11-1, is incomplete.
"In the event that the Authority decides not to authorize the proposed transaction, it shall notify, in writing, the applicant acquirer, no later than two working days before the end of the assessment period, indicating the reasons for that decision. The Authority shall make public the reasons for this decision, at the request of the acquirer candidate. » ;
3° Section R. 322-11-4 is replaced by the following provisions:
"Art. R. 322-11-4.-The undertakings referred to in 1st of Article L. 310-2 and 1st of Article L. 310-1-1 shall communicate to the Autorité de contrôle prudentiel et de résolution, at least once a year, the identity of the shareholders or associates who have, directly or indirectly, at least 10% of the voting rights or capital of the company as well as the shareholding amount thereof,
"They shall inform the Authority, as soon as they are aware, of the acquisitions or assignments of participation in their capital that have crossed the thresholds referred to in R. 322-11-1. » ;
4° Chapter II is supplemented by section 9 as follows:
“Section 9
"Specific provisions for insurance and reinsurance companies under the so-called solvency II plan"
"Art. R. 322-167.-The requirement of jurisdiction referred to in the VII of Article L. 322-2 shall be assessed in accordance with Article 258 of the Delegated Regulation (EU) No. 2015/35 of the Commission of 10 October 2014, without prejudice to the provisions of Article R. 322-11-6.
"Art. R. 322-168.-The Director General, the Executive Director(s) and the Executive Officer(s) actually direct the company within the meaning of section L. 322-3-2.
"The board of directors or supervisory board may also designate one or more physical persons as an effective officer, who are not mentioned in the previous paragraph, including the chair of the board of directors. These individuals must have a sufficiently broad area of competence and authority over the business' activities and risks, demonstrate sufficient availability within the company to perform this role, and be involved in decisions that have a significant impact on the company, including in terms of strategy, budget or financial matters. The Board of Directors or the Supervisory Board may withdraw this function.
"The Board of Directors or the Supervisory Board defines the cases in which the actual leaders are absent or prevented in order to ensure continuity of the effective management of the company. »
III.-Chapter III of Book III title II of the same code is amended as follows:
1° The title of this chapter is thus replaced by the following title:
“Chapter III
"Safety and sanitation measures";
2° The title of section 2 is replaced by the following title:
“Section 2
"Measures for the remediation of enterprises whose headquarters is located in a Member State of the European Union";
3° In article R. 323-11, in the first and fifth preambular paragraphs, the words: "the Authority of Control" are replaced by the words: "the Authority of prudential control and resolution" and at 1°, the words: "the European Community" are replaced by the words: "the European Union".
IV.-Section R. 324-1 is repealed.
V.-Chapter V of title II of book III of the same code is amended as follows:
1° Section R. 325-2 is replaced by the following provisions:
"Art. R. 325-2.-When the approval is withdrawn under the provisions of Article L. 325-1 or 6° or 7° of Article L. 612-39 of the monetary and financial code or when the Authority of prudential control and resolution has found the invalidity of the approvals under Article L. 321-10-2, it shall promptly inform the competent authorities concerned of the other Member States.
"When the Autorité de contrôle prudentiel et de résolution is informed by a supervisory authority of a Member State of the caducity or withdrawal of the approval of an insurance or reinsurance company, it shall take appropriate measures to prevent the company concerned from beginning new operations in French territory. » ;
2° Article R. 325-5 is repealed;
3° Section R. 325-10 is replaced by the following provisions:
"Art. A. 325-10.-When a company is subject to a withdrawal or a finding of a caducity of the administrative approval by the Autorité de contrôle prudentiel et de résolution or by the supervisory authority of another Member State, the Autorité de contrôle prudentiel et de résolution takes, if any with the assistance of the supervisory authorities of the Member States on whose territory the company operates, all measures to safeguard the beneficiaries, articles L. 612-30 to L. 612-39 of the monetary and financial code. Where these measures consist of the suspension, restriction or temporary prohibition of the free disposition of all or part of the assets of that undertaking pursuant to 4° of Article L. 612-33 of the monetary and financial code, the Autorité de contrôle prudentiel et de résolution informs beforehand the authorities of control of the host Member States concerned and their request to take the same measures. » ;
4° In R. 325-11, the words: "must be precisely motivated and notified" are replaced by the words: "is notified" and the reference: "L. 321-9" is replaced by the reference: "L. 329-1".
VI.-A Article R. 326-1, in the sixth paragraph, the words: "the European Community" are replaced by the words: "the European Union" and III, the reference: "L. 321-9" is replaced by the reference: "L. 329-1".
VII.- Title II of Book III of the same Code is supplemented by a chapter IX as follows:
“Chapter IX
"Succursales of insurance companies whose headquarters is located in a State not party to the agreement on the European Economic Area
"Art. R. 329-1.-The administrative approval provided for in Article L. 329-1 shall be issued to the branches of enterprises referred to in Article L. 310-2, under the conditions provided for in Articles R. 321-1, R. 321-3, R. 321-5, R. 321-14, R. 321-16 to R. 321-18, if the company is authorized to carry out the national accounts This approval is denied under the conditions of section R. 321-4.
"Art. R. 329-2.-The general representative of the branches of enterprises referred to in 4th of Article L. 310-2, if he is a natural person, must reside in the territory of a Member State. If the agent is a legal entity, the head office of the person must be established in the territory of a Member State, and the natural person appointed to represent the person must meet the conditions set out in the paragraphs below and assume in that capacity the responsibility for the fulfilment of his or her obligations.
"When the agent general is an employee or an agent paid to the commission of the enterprise, his duties as agent general do not make him lose that quality.
"The agent general, if he is a natural person, or his representative if he is a legal person, must produce, with respect to his qualification and professional experience, the information defined by the Autorité de contrôle prudentiel et de résolution.
"A change affecting the information referred to in the previous paragraph must be communicated to the Authority for prudential control and resolution, which may, where appropriate, challenge the agent.
"The agent general must be granted by the company concerned with sufficient powers to hire the company in respect of third parties and to represent it vis-à-vis French authorities and courts. For the provisions of this Code applicable to business branches referred to in 4th of Article L. 310-2, it is necessary to hear: “general agent” where is mentioned: “general manager”.
"The company cannot withdraw to its agent general the powers it has entrusted to it before having appointed its successor. The agent-general remains vested in this position as long as its replacement has not been designated and, where appropriate, accepted by the Autorité de contrôle prudentiel et de résolution. In the event of the death of the agent general, or of the natural person appointed to represent him, the company must designate his successor in the shortest time.
"Art. R. 329-3. -Under the conditions set out in this chapter, the Autorité de contrôle prudentiel et de résolution authorizes the branches of enterprises mentioned in the 4th of Article L. 310-2, to transfer all or part of their portfolio of contracts to a transferring undertaking established in French territory, where the Autorité certifies that the transferring undertaking has, in the light of the transfer, sufficient eligible funds to cover the solvency capital required to be covered.
"Under the conditions set out in this chapter, the Autorité de contrôle prudentiel et de résolution authorizes the branches of enterprises mentioned in the 4th of Article L. 310-2, to transfer all or part of their portfolio of contracts to an insurance company having its seat in another Member State, where the control authorities of that Member State certify that the transferee enterprise has, in the light of the transfer, adequate equity for the purpose of the transfer, to cover the capital
"In the conditions provided for in this chapter, the Autorité de contrôle prudentiel et de résolution authorizes the branches of enterprises mentioned in the 4th of Article L. 310-2, to transfer all or part of their portfolio of contracts to a branch established in the territory of a member State of a company whose head office is located in a State not party to the agreement on the European economic space, the Autorité de contrôle prudentiel et de résolution attest
“(a) That the branch of the transferring undertaking, taking into account the transfer, have sufficient eligible funds to cover the required solvency capital; and
“(b) That the right of the Member State to the branch of the transferring enterprise permits such transfer.
"In the cases referred to in the preceding paragraphs, where the transferring branch is located in the French territory, the prudential and resolution control authority only authorizes the transfer after having received the agreement of the control authorities of the Member State where the risk is located or of the Member State of the undertaking, when it is not the Member State where the assigning branch is located.
"When the Autorité de contrôle prudentiel et de résolution is consulted on a portfolio transfer, it makes known its opinion or agreement to the control authorities of the Member State of origin of the transferring branch within three months of receipt of the application.
"The transfer authorized by the Authority of prudential control and resolution in accordance with the preceding paragraphs shall be subject to an advertising measure under the conditions laid down in Article L. 324-1.
"This transfer is subject to full rights to insured persons, subscribers and beneficiaries of contracts, as well as to any person with rights or obligations arising from the contracts transferred.
"Art. R. 329-4.-I.-The business branches referred to in 4th of Article L. 310-2 constitute adequate technical provisions to cover the insurance and reinsurance obligations entered into in French territory, calculated in accordance with the provisions of section I of Chapter I of Title V of this book with the exception of Articles L. 351-4 and L. 351-5 and assess their assets and commitments
"II.-The branch offices referred to in the 4th of Article L. 310-2 have an eligible amount of equity set out in section R. 351-26.
"The required solvency capital and the required minimum capital shall be calculated in accordance with the provisions of Chapter II of Title V of this book.
"However, for the purpose of calculating the required solvency capital and the required minimum capital, only the transactions carried out by the branch concerned shall be taken into account for both life insurance and non-life insurance.
"The eligible amount of the basic funds required to cover the minimum required capital and the absolute floor threshold of this minimum required capital shall be constituted in accordance with the fourth paragraph of R. 351-26.
"The eligible amount of base equity cannot be less than half of the absolute floor threshold required under section R. 352-29.
"The quarter of the absolute floor threshold required under section R. 352-29 shall, as a security right, be deposited or registered in the Caisse des dépôts et consignations or the Banque de France. This deposit is recorded in eligible base funds to cover the minimum capital requirement.
"Representative assets of the required solvency capital must be located in France up to the minimum required capital and, for the surplus, within the European Union.
"III.-A branch of enterprise referred to in the 4th of Article L. 310-2 which has also been granted the approval of one or more supervisory authorities of the Member States may apply for the following benefits which can only be granted jointly:
“(a) The required solvency capital referred to in II of this Article shall be calculated on the basis of all the activity they exercise within the European Union;
“(b) The deposit required under the sixth paragraph of the II is only made in one of the Member States concerned;
"(c) The representative assets of the minimum required capital are located in one of the Member States where they operate.
"In the case mentioned in a, only the transactions carried out by all branches established within the European Union are taken into consideration for this calculation.
"The application to benefit from the above benefits is filed with the supervisory authorities of the Member States concerned. This request includes the indication of the control authority of the Member State which will have to verify in the future the solvency of the branches established within the European Union for all their operations. The choice of authority made by the company must be motivated.
"When chosen in the above-mentioned procedure, the Authority for prudential and resolution control can only grant the benefits provided for in the preceding paragraphs of the III with the agreement of all the control authorities concerned.
"When it is not the Authority chosen as part of the above-mentioned procedure, the Autorité de contrôle prudentiel et de résolution informs the other relevant control authorities of its decision concerning the granting of the above-mentioned benefits.
"These benefits take effect on the date on which the chosen control authority informs the other control authorities that it will verify the solvency of the branches established within the European Union for all their operations.
"The chosen control authority obtains from the control authorities of other Member States the information necessary to verify the overall solvency of the branches established in their territory.
"At the request of one or more supervisory authorities of the Member States concerned, the benefits granted under the III are simultaneously abolished by all the supervisory authorities of the Member States concerned.
"For the application of articles L. 352-7 and L. 352-8, in the case of a company that can benefit from the benefits provided in III, when the Authority of prudential control and resolution is the control authority chosen in accordance with the seventh paragraph of the III, it is assimilated to the control authority of the Member State in whose territory is the head office of the company established in the European Union.
"In the event that the Authority withdraws the approval, the Autorité de contrôle prudentiel et de résolution informs the supervisory authorities of the other Member States in which the company operates, which take the appropriate measures.
"If this withdrawal decision is taken in accordance with the second paragraph of Article L. 352-1, the Autorité de contrôle prudentiel et de résolution and the supervisory authorities of the Member States that have given their agreement in accordance with Article III shall withdraw their approval.
"If the control authority of another Member State chosen in accordance with the eighth paragraph of the III proceeds to the withdrawal of the approval due to the inadequacy of the overall solvency referred to in the second paragraph of the III, the Authority shall withdraw the approval of the branch.
"Art. R. 329-5.-The auditors of the branches of business referred to in 4th of Article L. 310-2 are designated by the general representative referred to in R. 329-2. »
Title V of BookIII of the same code is replaced by the following:
« Title V
"REGIME PRUDENTIEL APPLICABLE TO ENTREPRISES RELEVANT DU RÉGIME DIT “ SOLVABILITY II”
"Art. R. 350-1.-The Autorité de contrôle prudentiel et de résolution may determine, after notice of the advisory commission referred to in I of Article L. 612-14 of the Monetary and Financial Codestandard records for applications under this heading, including the list, format and format for the transmission of information required to it. These standard files are published in the Authority's official registry in electronic form.
"Art. R. 350-2.-For the purposes of the provisions of this Title to the mutuals and unions governed by Book II of the Code of Mutuality, it is necessary to hear: “a mutualist regulation or membership bulletin” where is mentioned in this Code: “contract”, “the risks mentioned in the a and b of the 1st of Article L. 111-1 of the mutuality code “where is mentioned: “the risks mentioned in 1° and 2° of Article L. 310-1” and the insurance transactions mentioned in 1° of article L. 111-1 of the mutuality code and reinsurance referred to in Article L. 111-1-1 of the same code “where is mentioned: “the insurance transactions referred to in Article L. 310-1 and reinsurance transactions referred to in Article L. 310-1-1”.
"For the application of the provisions of this title to the institutions of foresight and unions governed by title 3 of Book 9 of the Social Security Code, it is necessary to hear: "letter of accession to a regulation or collective contract" where is mentioned in this Code: "contract", "the risks mentioned in a and b of Article L. 931-1 of the Social Security Code “where is mentioned: “the risks mentioned in 1° and 2° of Article L. 310-1” and “the insurance transactions mentioned inArticle L. 931-1 of the Social Security Code and reinsurance referred to in Article L. 931-1-1 of the same code “where is mentioned: “the insurance transactions referred to in Article L. 310-1 and reinsurance transactions referred to in Article L. 310-1-1”.
“Chapter I
“Valorisation of prudential balance
“Section 1
“General provisions on the valuation of prudential balance sheet
"Art. R. 351-1.-The methods and assumptions to be used in the valuation of prudential assets and liabilities are defined in sections 7 to 16 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"An order by the Minister responsible for the economy specifies the application of the principle of materiality as well as the modalities for the recognition and valuation of prudential assets and liabilities relating to the benefits granted to staff, share payments, deferred taxes and term financial instruments.
“Section 2
“Guideial technical provisions
"Subsection 1
“General provisions on the valuation of prudential technical provisions
"Art. R. 351-2.-I.-The value of prudential technical provisions, referred to in Article L. 351-2, is equal to the sum of the best estimate and margin of risk.
"II.-The best estimate is the weighted average of their probability of future cash flow, taking into account the temporal value of the estimated money based on the relevant risk-free rate curve, which is the expected present value of future cash flow.
"The calculation of the best estimate is based on up-to-date and credible information and realistic assumptions and uses adequate, applicable and relevant actuarial and statistical methods.
"The cash flow projection used in the calculation of the best estimate takes into account all cash inflows and outflows required to meet insurance and reinsurance commitments throughout the period of these.
"The best estimate is calculated gross, without deduction of claims arising from reinsurance contracts and securitization vehicles. The amount of these receivables is calculated separately in accordance with section R. 351-12.
"All contracts that give rise to the aforementioned commitments to be taken into account are defined in Article 17 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014. The boundaries of these contracts are defined in section 18 of the Regulations.
"The data quality requirements and conditions under which approximations are allowed are defined in sections 19 to 21 of the Regulations.
"The assumptions to be used for the calculation of prudential technical provisions are defined in sections 22 to 26 of the Regulations.
"Cash flow projections are defined in sections 28 to 36 of the Regulations.
"The relevant risk-free rate curve is defined in sections 43 to 61 of the Regulations.
"III.-The margin of risk is calculated to ensure that the value of the prudential technical provisions referred to in section L. 351-2 is equivalent to the amount that a registered company to practice insurance or reinsurance operations would require to resume and honour insurance and reinsurance commitments.
"IV.- Insurance and reinsurance companies conduct a separate assessment of the best estimate and the margin of risk.
"However, where future cash flows related to insurance and reinsurance commitments can be reliably replicated using financial instruments for which there is an observable market value, the value of prudential technical provisions referred to in Article L. 351-2, related to these future cash flows, is determined using the market value of these financial instruments. In this case, a separate calculation of the best estimate and the margin of risk is not required.
"Article 40 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 specifies the circumstances under which a separate calculation of the best estimate and the margin of risk is not required.
"When conducting a separate assessment of the best estimate and the margin of risk, insurance and reinsurance companies calculate the margin of risk by determining the cost of the mobilization of an eligible equity amount equal to the solvency capital required to meet their commitments throughout the duration of these. For this risk margin assessment, the required solvency capital does not include the additional capital requirements imposed by the prudential and resolution control authority pursuant to section L. 352-3.
"The rate of capital cost is the rate used to determine the cost of mobilizing this amount of eligible equity. This rate is the same for all insurance and reinsurance companies and is reviewed periodically.
"The rate of the cost of the capital used is equal to the additional rate, in addition to the relevant risk-free interest rate, that would be borne by a company with a qualifying equity amount, referred to in section L. 351-6, equal to the required solvency capital that is necessary to meet the insurance and reinsurance commitments for the duration of the capital.
"The capital cost rate is set out in Article 39 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"The calculation of the margin of risk is defined in sections 37 and 38 of the Regulations.
"The simplification methods for the calculation of prudential technical provisions, margin of risk and the preconditions for their use are defined in sections 56 to 61 of the Regulations.
"Art. R. 351-2-1.-For the undertakings referred to in Article L. 310-3-1 that are approved for the purposes of the transactions referred to in 1° of Article L. 310-1, the calculation of the best estimate referred to in Article II of Article R. 351-2 shall take into account the payments and levies that would be made on the capital reserve constituted at the date of calculation, in accordance with the provisions of Article R.43-1
"Where applicable, the expected present value, estimated on the basis of the curve of the irrelevant risk rates, of the amount of the capitalization reserve remaining after the duration of the commitments mentioned in the preceding paragraph, is included in the reconciliation reserve, within the meaning of Article 69 (a) of the Delegated Regulation (EU) No. 2015/35 of the Commission of 10 October 2014 and is part of the core funds classified at level 1.
"For the purpose of controlling the application of the provisions provided for in this Article, the Autorité de contrôle prudentiel et de résolution determines the format of specific quantitative states.
"Art. R. 351-3.-The determination of the relevant risk-free interest rate curve referred to in Article R. 351-2 uses information from relevant financial instruments and remains consistent with this information. This determination takes into account the financial instruments relevant to the timelines for which the markets of these financial instruments, like bond markets, are deep, liquid and transparent. For maturity periods to which the markets of the relevant financial instruments or bonds are no longer deep, liquid and transparent, the curve of the relevant risk-free interest rates is extrapolated.
"The extrapolated portion of the curve of the relevant risk-free interest rates is based on time-to-term rates that have been converging from a rate, or a set of end-to-term rates, for the longest time-frames to which the relevant financial instrument can be observed and the obligations that have been labeled, in a deep, liquid and transparent market, to the ultimate rate.
"Art. R. 351-4.-I.-Insurance and reinsurance companies may apply an equalizing adjustment to the curve of interest rates that are irrelevant to calculate the best estimate of a portfolio of insurance or life insurance commitments, including annuities arising from non-life insurance or reinsurance contracts, subject to the agreement of the Autorité de contrôle prudentiel et de résolution, where the following conditions are met:
« 1° Insurance and reinsurance companies have assigned a portfolio of assets made bonds or other securities that have similar characteristics in cash flow, covering the best estimate of the portfolio of insurance or reinsurance commitments, and retain this subassignment until the maturity of these obligations, unless they want to maintain the equivalence of expected cash flows between assets and liabilities if these flows have significantly changed;
« 2° The portfolio of insurance or reinsurance commitments to which the equalizer adjustment is applied and the assigned portfolio of assets are identified, managed and organized separately from other business activities, and the assigned portfolio of assets cannot be used to cover losses resulting from other business activities;
« 3° The expected cash flow of the assigned asset portfolio is in the same currency, point-by-point, to the expected cash flow of the insurance or reinsurance portfolio and no equivalency breaks result in risks that are real in relation to the risks inherent in the insurance or reinsurance activity to which the equalizer adjustment applies;
« 4° The underlying contracts of the insurance or reinsurance portfolio do not result in future premiums;
« 5° The risk of subscription to the insurance or reinsurance portfolio is only the risk of longevity, the risk of expenditure, the risk of revision and the risk of mortality;
« 6° When the risk of subscription to the insurance or reinsurance portfolio includes the risk of mortality, the best estimate of the portfolio of insurance or reinsurance liabilities shall not increase by more than 5% in the context of a mortality risk shock calibrated in accordance with section R. 352-2;
« 7° The underlying contracts of insurance or reinsurance portfolios do not include options for insured persons, subscribers and beneficiaries of contracts, except for a redemption option if the redemption value does not exceed the value of the assets, assessed in accordance with section L. 351-1, covering insurance or reinsurance commitments on the date the redemption option is exercised;
« 8° Cash flows of the assets constituting the assigned asset portfolio are fixed and cannot be modified by securities issuers or by third parties;
« 9° The insurance or reinsurance obligations of an insurance or reinsurance contract are not divided into different parts when the portfolio of insurance or reinsurance commitments for the purposes of this I.
"The insurance or reinsurance company may use assets whose cash flows are fixed, subject to inflation indexing, provided that these assets correspond to the cash flows of the insurance or reinsurance portfolio that are inflation-dependent.
"In the event that the issuers or third parties have the right to modify the flow of an asset in such a way that the investor receives sufficient compensation to allow it to obtain the same cash flow by reinvesting in assets of an equivalent or better credit quality, the right to modify the cash flow does not exclude that the asset is eligible for the portfolio assigned in accordance with 8°.
"II.- Insurance and reinsurance companies that apply the equalizer adjustment to a portfolio of insurance or reinsurance commitments cannot return to a method that ignores the equalizer adjustment. If an insurance and reinsurance company that applies the equalizer adjustment is no longer able to meet the requirements set out in I, it shall immediately inform the Authority of prudential control and resolution and shall take the necessary measures to ensure compliance. If this company is not able to meet these conditions within two months, it ceases to apply the equalizer adjustment to each of its insurance or reinsurance commitments and can only apply such an adjustment once more within twenty-four months.
"The equalizer adjustment is not applied to insurance or reinsurance commitments where the relevant risk-free interest rate curve used to calculate the best estimate of commitments involves a volatility correction under section R. 351-6 or a transitional measure on risk-free interest rates under section L. 351-4.
"Art. R. 351-5.-I.-In each currency, the equalizer adjustment referred to in R. 351-4 is calculated in accordance with the following principles:
« 1° The equalizer adjustment shall be equal to the difference between the following amounts:
“(a) The effective annual rate, calculated as the single discount rate that, if applied to the cash flow of the insurance or reinsurance portfolio, would give a value equal to the value calculated in accordance with Article L. 351-1 of the assigned asset portfolio;
“(b) The effective annual rate, calculated as the single discount rate, which, if applied to the cash flow of the insurance or reinsurance portfolio, would give a value equal to the value of the best estimate of the insurance or reinsurance portfolio for which the time value of the money is taken into account by following the curve of interest rates that are not relevant;
« 2° The equalizer adjustment may not include the basic margin reflecting the risks assumed by the insurance or reinsurance undertaking;
« 3° Subject to the provisions of 1°, the fundamental margin shall be increased, if any, so that the equalizer adjustment for assets whose quality is less than that of an investment value does not exceed the equalizer adjustment for assets of good quality and of the same duration and of the same category;
« 4° The use of external credit assessments in calculating the equalizer adjustment shall be in accordance with the specifications set out in sections 4 to 6 of Commission Regulation (EU) No 2015/35 of 10 October 2014.
"II.-For the application of 2° of I, the fundamental margin is:
« 1° Equal to the sum of the following:
“(a) The credit margin corresponding to the probability of default of assets; and
“(b) The margin of credit corresponding to the expected loss of an asset degradation;
« 2° For exhibitions on the central administrations and central banks of the Member States, greater than or equal to 30% of the long-term average of the margin relative to the rate of the fundamental curve of the risk-free interest rates of assets of the same duration, of the same credit and of the same category, as observed in the financial markets;
« 3° For assets other than exposures on the central administrations and central banks of the Member States, greater than or equal to 35% of the long-term average of the margin relative to the rate of the fundamental curve of the risk-free interest rates of assets of the same duration, of the same credit quality and of the same category, as observed in the financial markets.
"The probability of default referred to in 1°, is based on long-term default statistics that are relevant to the assets in question, depending on their duration, credit quality and class.
"When no reliable credit margin can be drawn from the default statistics mentioned in the previous paragraph, the basic margin is equal to the long-term portion of the margin relative to the fundamental curve rate fixed by 2° and 3°.
"Art. R. 351-6.-I.- Insurance and reinsurance companies may apply a correction for volatility of the curve of interest rates that are relevant to use to calculate the best estimate referred to in R. 351-2.
"For each currency concerned, the volatility correction of the relevant risk-free interest rate curve is based on the difference between the interest rate that it would be possible to remove assets included in a reference portfolio in that currency and the rates of the corresponding non-risk interest rate curve in that currency.
"The reference portfolio in a currency is representative of the assets that are denominated in this currency and in which insurance and reinsurance companies have invested to cover the best estimate of the insurance and reinsurance commitments in that currency.
"II.-The amount of the correction for the volatility of risk-free interest rates is 65% of the "currency" deviation of the corrected risk.
"The "currency" deviation of the corrected risk is equal to the difference between the deviation referred to in the second paragraph of the I and the share of that deviation due to a realistic assessment of the expected losses on assets and the risk of unforeseen credit or any other risk to such assets.
"Volatility correction is applicable only at the risk-free interest rates of the relevant curve that are not calculated by extrapolation under R. 351-3.
"When the insurance or reinsurance company applies a volatility correction, the extrapolation of the relevant risk-free interest rate curve is based on the unsafe interest rates thus corrected.
"III.-For each country concerned, the correction for the volatility of the unsafe interest rates mentioned in II in the currency of that country is, before applying the factor of 65%, increased from the difference between the “country” difference of the corrected risk and the double of that difference, when this difference is positive and the “currency” difference of the corrected risk is greater than 100 basis points. The increase in volatility correction applies to the calculation of the best estimate for insurance and reinsurance commitments of products sold on the market in that country. The “country” deviation of the corrected risk is calculated in the same way as the “currency” difference of the corrected risk of that country, but on the basis of a reference portfolio that is representative of the asset portfolio in which insurance and reinsurance companies have invested to cover the best estimate of the insurance and reinsurance commitments sold on the insurance market of that country and labeled in the currency of that country.
"Volatility correction does not apply to insurance commitments if the appropriate non-risk interest rate curve to be used to calculate the best estimate of these obligations involves the equalizer adjustment provided for in section R. 351-4.
"By derogation from section R. 352-2, the required solvency capital does not cover the risk of loss of base equity resulting from a change in volatility correction.
"Art. R. 351-7.- Insurance and reinsurance companies use the technical information developed pursuant to Article 77 sexies of Directive 2009/138/EC of 25 November 2009 amended to calculate the best estimate referred to in Article II R. 351-2, the equalizer adjustment referred to in Article R. 351-5 and the volatility correction referred to in Article R. 351-6.
"In respect of national currencies and markets for which the correction for volatility referred to in Article R. 351-6 is not provided for in the enforcement actions referred to in paragraph 2 of Article 77 sexies of Directive 2009/138/EC, no correction for volatility is applied to the curve of interest rates not relevant to use to calculate the best estimate.
"Art. R. 351-8.-The Autorité de contrôle prudentiel et de résolution provides, each year, until 1 January 2021, to the European Insurance and Professional Pension Authority the following information:
“(a) The availability of long-term guarantees of insurance products on the French market and the practices of insurance and reinsurance companies as long-term investors;
“(b) The number of insurance and reinsurance companies that apply the equalizer adjustment, the correction for volatility, the extension of the recovery period in accordance with section L. 352-7, the submodule “Action risk” based on the duration and transitional measures set out in sections L. 351-4 and L. 351-5;
"(c) By anonymizing them, the effects at the national level on the financial situation of the insurance and reinsurance companies of the equalizer adjustment, the correction for volatility, the symmetrical adjustment mechanism of the capital requirement for shares, the submodule “risk on shares” based on the duration and transitional measures referred to in sections L. 351-4 and L. 351-5;
"(d) The effect on the investment practices of insurance and reinsurance companies of equalizer adjustment, volatility correction, the symmetrical adjustment mechanism of the capital requirement for shares and the submodule “equity risk” based on the duration, and whether or not these companies provide an undue relief of equity;
“e) The effect of any extension of the recovery period in accordance with section L. 352-7 on the efforts of insurance and reinsurance companies to restore the eligible equity level covering the required solvency capital or to reduce the risk profile to ensure compliance with the solvency capital requirement;
“(f) When insurance and reinsurance companies apply the transitional measures referred to in sections L. 351-4 and L. 351-5, the compliance by these undertakings of the gradual implementation plans referred to in Article L. 352-9 and the prospects for a reduction in reliance on these transitional measures, including measures that have been taken or should be taken by the companies and the prudential control authority and
"Art. R. 351-9.-Insurance and reinsurance companies shall take into account, in addition to the provisions of section R. 351-2, the following elements when calculating their prudential provisions within the meaning of section L. 351-2:
« 1° All expenses that will be incurred to meet insurance and reinsurance commitments. These expenses are determined in accordance with the terms set out in Article 31 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014;
« 2° Inflation, including that affecting costs and claims;
« 3° All payments to insured persons, contract recipients and resecured enterprises, including discretionary participations that the undertakings referred to in section L. 310-3-1 provide for payment in the future, whether or not these payments are contractually guaranteed, unless they fall within the second paragraph of section R. 351-21. These future discretionary participations are determined in accordance with the terms set out in Article 24 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 351-10.-When calculating their prudential technical provisions, as defined in Article L. 351-2, insurance and reinsurance companies take into account the value of financial guarantees and any option included in their contracts.
"Any assumption by these insurance and reinsurance companies regarding the likelihood that insured persons, subscribers, beneficiaries of reinsured contracts and undertakings will exercise their options, including reduction and redemption rights, must be realistic and based on current and credible information. It takes into account, either explicitly or implicitly, the impact of possible changes in financial and non-financial conditions on the exercise of these options.
"The terms and conditions for the application of this Article are set out in Articles 26 and 32 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 351-11.-When calculating their prudential technical provisions within the meaning of Article L. 351-2, insurance and reinsurance companies segment their commitments into homogeneous risk groups and, at a minimum, by business lines as defined in Article 55 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"Art. R. 351-12.-When calculating claims arising from reinsurance contracts and securitization vehicles, insurance and reinsurance companies comply with sections L. 351-2 and R. 351-2 to R. 351-11. They take into account the timing between recovery and direct payments.
"The result of this calculation is adjusted to take into account the probable losses for default of the counterparty. This adjustment is based on an assessment of the probability of default of counterparty and the resulting average loss, or loss in the event of default.
“The modalities for calculating this adjustment are defined in articles 42 and 57 of the Commission’s Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 351-13.- Insurance and reinsurance companies must establish internal processes and procedures to ensure the appropriateness, completeness and accuracy of the data used in calculating their prudential technical provisions referred to in Article L. 351-2.
"When, in special circumstances, defined in Article 19 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014, insurance and reinsurance companies do not have sufficient data of an appropriate quality to apply a reliable actuarial method to a set or subset of their commitments, or claims arising out of reinsurance contracts and securitization vehicles, appropriate approximations of the case, including
"Art. R. 351-14.- Insurance and reinsurance companies put in place processes and procedures to ensure a regular comparison of their best estimates and assumptions underpinning the calculation of the latter with the data from the experience.
"When this comparison shows a systematic gap between the data from the experience and the calculations of the best estimates of the company, it makes the appropriate adjustments to the actuarial methods used or the assumptions used.
"Art. R. 351-15.-At the request of the Autorité de contrôle prudentiel et de résolution, insurance and reassurance companies demonstrate the appropriateness of the level of their prudential technical provisions referred to in Article L. 351-2, as well as the applicability and relevance of the methods they apply and the adequacy of the underlying statistical data they use.
"Subsection 2
“Transitional measures
"Art. R. 351-16.-I.-In each currency, the calculation of the adjustment referred to in Article L. 351-4 corresponds to a fraction of the difference between:
« 1° The interest rate determined by the insurance or reinsurance company in accordance with the provisions of this code in effect as of December 31, 2015; and
« 2° The effective annual rate, calculated as the single discount rate that, if applied to the cash flow of the eligible insurance and reinsurance portfolio, would give a value equal to the value of the best estimate of the portfolio of eligible insurance and reinsurance commitments for which the time value of the money is taken into account by following the curve of the relevant non-risk interest rates referred to in section-2.
"The fraction mentioned in the first paragraph decreases in a linear way at the end of each year, from 100% to January 1, 2016 to 0% on January 1, 2032.
"When insurance and reinsurance companies apply the volatility correction referred to in R. 351-6, the curve of the irrelevant risk-free interest rates referred to in 2° is the curve of the relevant risk-free interest rates defined in R. 351-6.
"II.-Eligible insurance and reinsurance commitments are those that meet the following requirements:
“(a) Contracts giving rise to insurance and reinsurance commitments were entered into before January 1, 2016, excluding renewals of contracts that were made on or after that date;
“(b) Until 31 December 2015, the technical provisions for insurance and reinsurance commitments were determined in accordance with the provisions of the sections of this Code in force as of 31 December 2015;
"(c) Section R. 351-4 is not applied to insurance and reinsurance commitments.
"III.- Insurance and reinsurance companies that apply the measures set out in section L. 351-4:
“(a) Do not apply Article L. 351-5;
“(b) In the report on their creditworthiness and financial situation referred to in Article L. 355-5, they report that they apply the transient risk-free rate curve and quantify the impact on their financial situation of the decision not to apply this transitional measure.
"IV.- Insurance and reinsurance companies that, subject to the prior approval of the Supervisory and Resolution Authority, apply the adjustment referred to in I after January 1, 2016 may use the fraction referred to in I, which is calculated in the same way as if the adjustment had been applied from January 1, 2016.
"V.-The Autorité de contrôle prudentiel et de résolution takes action on the adjustment referred to in this article within three months.
"Art. R. 351-17.-I.-The transitional deduction referred to in Article L. 351-5 is a fraction of the difference between the following two amounts:
“(a) Technical provisions after deduction of claims arising from reinsurance contracts and securitization vehicles, calculated in accordance with Article L. 351-2, as of January 1, 2016; and
“(b) Technical provisions after deduction of claims arising from reinsurance contracts, calculated in accordance with the provisions of this Code in force as at 31 December 2015.
"The maximum deductible fraction decreases in a linear way at the end of each year, from 100% to January 1, 2016 to 0% on January 1, 2032.
"When insurance and reinsurance companies apply the volatility correction referred to in R. 351-6 on January 1, 2016, the amount referred to in 1° is calculated with the volatility correction applicable to that date.
"II.-Subject to prior approval or the initiative of the Authority for prudential and resolution control, the amounts of technical provisions, if any incorporating the amount of the correction for volatility, entering the calculation of the transitional deduction may be recalculated every twenty-four months or more frequently if the risk profile of the company has significantly changed.
"III.-The Autorité de contrôle prudentiel et de résolution may limit the transitional deduction if its application is likely to result in less requirements for financial resources applicable to the undertaking than those calculated in accordance with the provisions of this code in force as of 31 December 2015.
"IV.- Insurance and reinsurance companies that apply the transitional deduction:
“(a) Do not apply Article L. 351-4;
“(b) In the event that they do not meet the required solvency capital requirement without the application of the transitional deduction, submit annually to the Authority for prudential and resolution control a report outlining the measures taken and the progress made to restore at the end of the transitional period defined in I a level of eligible equity covering the required solvency capital or to reduce their risk profile in order to reinsurance the required solvency capital;
"(c) Note in the report on their creditworthiness and financial situation referred to in Article L. 355-5 that they apply the transitional deduction to technical provisions and quantify the impact on their financial situation of the decision not to apply this transitional deduction.
"V.-Insurance and reinsurance companies that, subject to the prior approval of the Supervisory and Resolution Authority, apply the transitional deduction after January 1, 2016, may use the maximum deductible share referred to in I that is calculated in the same manner as if the transitional deduction had been applied from January 1, 2016.
"VI.-The Autorité de contrôle prudentiel et de résolution takes action on the transitional deduction referred to in this article within three months.
“Section 3
« Clean funds
"Art. R. 351-18.-The core funds referred to in Article L. 351-6 consist of the following:
« 1° The surplus of assets in relation to prudential liabilities, assessed in accordance with sections 1 and 2 of this chapter;
« 2° Subordinate liabilities.
"The surplus referred to in 1° is reduced by the amount of its own shares that the insurance or reinsurance company holds.
"Where applicable, the base funds are adjusted taking into account the provisions of Article 68 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 351-19.-The auxiliary funds referred to in Article L. 351-6 are made up of elements, other than the base funds, which can be called to absorb losses.
"The auxiliary funds may include the following elements, to the extent that it is not a matter of equity:
“(a) The unpaid portion of social capital or the initial fund that was not called;
“(b) Letters of credit and guarantees;
"(c) Any other legally binding undertaking received by insurance and reinsurance companies.
"In the case of a variable contribution mutual or union governed by Book II of the mutuality code or a variable contribution mutual insurance corporation, the auxiliary funds may also include any future receivable that the organization may hold on its members by recalling contributions over the next twelve months.
"When an element of the auxiliary funds has been paid or called, it is considered a prudential asset within the meaning of section L. 351-1 and ceases to be part of the auxiliary funds.
"Art. R. 351-20.-The amounts of the elements of the auxiliary funds to be taken into consideration in determining the prudential equity within the meaning of Article L. 351-6 are subject to the prior approval of the Authority for prudential control and resolution.
"The amount allocated to each element of auxiliary equity reflects the ability to absorb losses of the relevant element and is based on conservative and realistic assumptions. When a fixed nominal value is attached to an auxiliary equity element, the amount of that element is equal to its nominal value, provided that it adequately reflects its loss absorption capacity.
"The Autorité de contrôle prudentiel et de résolution approves either of the following:
“(a) A monetary amount for each element of auxiliary equity;
“(b) A method for calculating the amount of each auxiliary equity element. In this case the approval by the Authority of the amount so calculated is given for a specified period.
"For each component of its own auxiliary funds, the Autorité bases its approval on the evaluation of the following:
“(a) The status of the counterparties concerned, taking into account their capacity and willingness to pay. The status of counterparties is specified in Article 63 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014;
“(b) The possibility of recovery of funds, taking into account the legal form of the subject matter and any circumstance that could prevent it from being paid or successfully called. Recovery of funds shall be carried out in accordance with the terms set out in Article 64 of the Regulations;
"(c) Any information on the outcome of calls made in the past by the company for similar auxiliary funds, as this information may be reasonably used to estimate the expected outcome of future calls.
"Definition of this information is given in section 65 of the Regulations.
"The terms and conditions for the application for approval of auxiliary funds are defined in section 62 of the Regulations.
"The terms and conditions for the validation of the amount of the auxiliary funds, as well as the period of recognition of the amount, are set out in section 66 of the Regulations.
"Art. R. 351-21.-The surplus funds consist of accumulated profits that have not yet been made available for distribution to insured persons, subscribers, contract recipients and reassigned businesses.
"These surplus funds are not considered to be insurance and reinsurance commitments as they meet the criteria set out in 1° of section R. 351-23.
"Art. R. 351-22.-I.-The equity elements are classified into three levels. This classification is based on both their own core funds or auxiliary funds and the following characteristics of permanent availability and subordination:
“(a) The element is available, or may be called upon upon request, to fully absorb losses, whether in the context of continuous operation or in the event of liquidation;
“(b) In the event of liquidation, the total amount of the item is available for the absorption of the losses and the reimbursement of the item is denied to its holder until all other commitments, including insurance and reinsurance commitments to insured persons, subscribers and beneficiaries of insurance contracts, and reinsured companies have been honoured.
"II.-In order to assess the extent to which the elements of equity have the characteristics defined in a and b, at a particular time and for the future, it is important to give due consideration to the duration of the element, especially if it has a fixed duration or not. When the equity element has a specified duration, its relative duration, in comparison with the duration of the company's insurance and reinsurance commitments, is considered.
"It is also taken into consideration whether the element is exempt from any obligation of or incentive to repay its nominal amount, mandatory fixed charges and constraints.
"Art. R. 351-23.-I.-The elements of the core funds are classified at level 1 when they present in fact the characteristics referred to in article R. 351-22, a and b, taking into account the factors referred to in article R. 351-22, II.
"The list and classification criteria for level 1 equity are defined in sections 69.70 and 71 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"II.-The elements of the core funds are classified at level 2 when they present in fact the characteristic referred to in paragraph 1 (b) of Article R. 351-22, taking into account the factors referred to in Part II of Article R. 351-22.
"The elements of the auxiliary funds shall be classified at level 2 when they present in fact the characteristics described in article R. 351-22 (a) and (b), taking into account the factors referred to in Article R. 351-22 (II).
"The list and criteria for the classification of the core funds classified at level 2 are defined in Articles 72 and 73 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"The list and classification criteria for the sub-divided funds classified at level 2 are defined in sections 74 and 75 of the Regulations.
"III.-Any element of base or auxiliary funds that do not fall under I and II is classified at level 3.
“The list and criteria for the classification of base funds classified at level 3 are defined in articles 76 and 77 of the Commission’s Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"The list of auxiliary funds classified at level 3 is defined in section 78 of the Regulations.
"Art. R. 351-24.- Insurance and reinsurance companies must classify their own funds based on the criteria set out in section R. 351-23.
"For this purpose, they refer, if any, to the list of the specific elements mentioned in Articles 69 to 79 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"When an element of equity does not fall within this list, it is assessed and classified by companies in accordance with the first paragraph of this section. This evaluation and classification are subject to the approval of the Autorité de contrôle prudentiel et de résolution. The application submitted to the Authority must be previously approved by the Director General or the Director General. The Authority shall take action within three months.
"Art. R. 351-25.-Without prejudice to section R. 351-24, the following classifications are applied for the purposes of this section:
« 1° The surplus funds referred to in R. 351-21 are classified at level 1;
« 2° Letters of credit and guarantees held in trust by an independent trustee for the benefit of insurance creditors and provided by credit institutions are classified at level 2;
« 3° Any future debt that the mutual funds or unions governed by Book II of the mutuality code or mutual insurance companies with variable contributions from shipowners, which only provide the risks classified under 6.12 and 17 referred to in Article R. 321-1 or under section 17 referred to inarticle R. 211-2 of the mutuality code, may hold on their members by recall of contributions for the next 12 months, is classified at level 2.
"In accordance with the second paragraph of section R. 351-23, any future receivables that may be held on their members by means of a reminder of contributions for the next 12 months and which is not covered by the 3rd-23, may be held on their members by way of a reminder of contributions for the next 12 months and which is not covered by the 3rd-23, shall be classified at level 2 when it presents in fact the characteristics mentioned in
"Art. R. 351-26.-Concerning compliance with the required solvency capital, the eligible amounts of Level 2 and Level 3 elements are subject to quantitative limits. These limits are defined in Article 82 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"With respect to the minimum level of capital required, the amount of eligible base equity elements to cover the minimum required capital that is classified at level 2 is subject to quantitative limits. These limits are specified in section 82 of the Regulations.
"The amount of prudential equity referred to in section R. 351-18 eligible to cover the solvency capital required under section L. 352-1 is equal to the sum of the amount of level 1, the eligible amount of level 2 elements and the eligible amount of level 3 elements.
"The amount of eligible base funds to cover the minimum required capital referred to in Article L. 352-5 is equal to the sum of the amount of the level 1 elements and the eligible amount of the base equity elements classified at level 2.
"Art. R. 351-27.-I.-Without prejudice to the application of the provisions of Article R. 351-23, the basic equity elements are included in the level 1 core funds for a maximum period of ten years after January 1, 2016, if these elements:
“(a) was issued before January 18, 2015;
“(b) As at 31 December 2015, could be used, in accordance with the provisions of Chapter IV of Title III of Book III of this Code in force at that date, to the provisions of Chapter II of Title I of Book II of the Code of Mutuality in force at that date and to the provisions of R. 931-10-1 to R. 931-10-11-3 of the Code of Mutuality in force at that date. Social Security Code in force on that date, as a component of the credit margin, calculated according to the same provisions, up to 50% of the available credit margin or the minimum margin requirement, the lowest amount being retained;
"(c) Otherwise, would not be classified at level 1 or at level 2 in accordance with section R. 351-23.
"II.-Without prejudice to section R. 351-23, the core equity elements are included in the Level 2 core funds for a maximum period of ten years after January 1, 2016 if these elements:
“(a) was issued before January 18, 2015;
“(b) As at 31 December 2015, could be used, in accordance with the provisions of Chapter IV of Title III of Book III in force at that date, as a component of the solvency margin, calculated according to the same provisions, up to 25% of the available solvency margin or the minimum margin requirement, the lowest amount being retained.
"III.-Where an element of equity is considered, as a result of the application of the quantitative limits of these provisions, as non-eligible under the provisions applicable as at 31 December 2015, the Autorité de contrôle prudentiel et de résolution considers this element to meet the criteria of I, if any, of this article.
"Art. R. 351-28.-I.- It is prohibited for companies referred to in Article L. 351-7 to make a distribution relative to one of the elements referred to in (i) and (ii) of Article 69 of the Delegated Regulation (EU) No. 2015/35 of the Commission of 10 October 2014, classified at level 1 as provided for in Article R. 351-23, in the event of non-covering of the required solvency capital.
"By derogation from the provisions of the previous paragraph, in the event of non-covering the required solvency capital or in the case that distribution would be of such magnitude that the required solvency capital would no longer be covered, the enterprises referred to in Article L. 351-7 may make a distribution if the following three conditions are met:
“(a) The Autorité de contrôle prudentiel et de résolution accepted, exceptionally, that it be derogated from the prohibition of distribution;
“(b) The distribution does not further deter the solvency of the company; and
"(c) The minimum required capital of the company is covered after distribution.
"II.-For the elements referred to in (i) and (ii) of Article 72 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, classified at Level 2 as provided for in Article R. 351-23, the companies referred to in Article L. 351-7 defer distributions relating to these elements in the event of non-covery of the required solvency capital or in the case where such distributions would be required
"By derogation from the provisions of the previous paragraph, in the event of non-covering the required solvency capital or in the case that distribution would be of such magnitude that the required solvency capital would no longer be covered, the enterprises referred to in Article L. 351-7 may make a distribution if the following three conditions are met:
“(a) The Autorité de contrôle prudentiel et de résolution accepted, exceptionally, that it be derogated from the postponement of the distribution;
“(b) The distribution does not further deter the solvency of the company; and
"(c) The minimum required capital of the company is covered after distribution. »
"III.-For the application of I and II, when the non-covering of the required minimum capital comes before the non-covering of the required solvency capital, it is necessary to hear: "minimum of required capital" where is mentioned: "required solvency capital".
"IV.-The other cases provided for in Article L. 351-7 for which is deemed to be non-written any stipulation that the non-payment of the distributions is considered a default event are those provided for in Article 71(1) and Article 73 g of Delegated Regulation (EU) No. 2015/35 of the Commission of 10 October 2014.
“Chapter II
" Regulatory capital requirements
"Art. R. 352-1.-For this chapter:
« 1° The term "risk of subscription" means the risk of loss or unfavourable change in the value of insurance commitments, due to inadequate pricing and provisioning assumptions;
« 2° The term “market risk” means the risk of loss, or adverse change in the financial situation, resulting, directly or indirectly, from fluctuations affecting the level and volatility of the market value of assets, liabilities and financial instruments;
« 3° The term “credit risk” means the risk of loss, or adverse change in the financial situation, resulting from fluctuations affecting the quality of credit of securities issuers, counterparties or any debtor, to which insurance and reinsurance companies are exposed in the form of risk of counterparty, margin risk or concentration of market risk;
« 4° The term: “operational risk” means the risk of loss resulting from internal procedures, personnel or inadequate or deficient systems, or external events;
« 5° The term: “liability risk” means the risk, for insurance and reinsurance companies, not being able to carry out their investments and other assets in order to meet their financial commitments at the time they become due;
« 6° The expression: “concentration risk” means all risk exposures that have a potential for loss that is important enough to threaten the creditworthiness or financial situation of insurance and reinsurance companies;
« 7° The term "risk mitigation techniques" means all techniques that allow insurance and reinsurance companies to transfer all or part of their risks to another party;
« 8° The expression: “provisional effects” refers to the reduction of exposure to the risk caused by the fact, for companies and insurance and reinsurance groups, to diversify their activities, as long as the adverse result of a risk can be compensated by the more favorable result of another risk, when these risks are not perfectly correlated;
« 9° The expression: “Provisional Probability Distribution” means a mathematical function that affects a complete set of mutually exclusive future events a probability of realization;
« 10° The term “risk measure” means a mathematical function that affects a monetary amount to a given predictive probability distribution that increases monotonically with the level of risk exposure underpinning this predictive probability distribution.
"Art. R. 352-1-1.-Anonymous companies subject to the provisions of this Title shall be exempted from the sampling prescribed by theArticle L. 232-10 of the Commercial Code.
“Section 1
"Required credit capital
"Subsection 1
“General provisions
"Art. R. 352-2.-The solvency capital required is calculated as follows:
« 1° This calculation is based on the hypothesis of a continuity in the operation of the enterprise concerned;
« 2° The required solvency capital is calibrated to ensure that all quantifiable risks to which the insurance or reinsurance company is exposed are considered. It covers the current portfolio, as well as the new portfolio whose subscription is expected in the next 12 months. For the current portfolio, it covers only unanticipated losses.
"The credit capital required is the risk value of the basic funds of the insurance or reinsurance company, with a confidence level of 99.5% over a year;
« 3° The required solvency capital covers at least the following risks:
“(a) The risk of subscription in non-life;
“(b) The risk of subscription in life;
“(c) Health subscription risk;
"(d) Market risk;
“e) The risk of credit;
“(f) Operational risk, which includes legal risks, but does not include risks arising from strategic decisions or reputation risks;
« 4° When calculating their solvency capital, insurance and reinsurance companies take into account the impact of risk mitigation techniques, provided that the credit risk and other risks associated with the use of these techniques are adequately considered in the required credit capital.
"Art. R. 352-3.- Insurance and reinsurance companies calculate their solvency capital required at least once a year and transmit the result of this calculation to the Autorité de contrôle prudentiel et de résolution in accordance with the terms set out in Article L. 355-1.
"Insurance and reinsurance companies own eligible funds that cover the last solvency capital required to be transferred.
"Insurance and reinsurance companies are continuously monitoring the amount of their eligible equity and their required credit capital.
"If the risk profile of an insurance or reinsurance company significantly deviates from the assumptions underlying the last solvency capital that is required to be transmitted, the company shall promptly recalculate its solvency capital required and transmit it to the Authority for prudential control and resolution.
"When elements appear to indicate that the risk profile of an insurance or reinsurance company has changed significantly since the date of the last transmission of the required solvency capital, the Autorité de contrôle prudentiel et de résolution may require that the company recalculate the required solvency capital.
"Subsection 2
« Standard formula
"Art. R. 352-4.-The solvency capital required according to the standard formula is the sum of the following:
“(a) The basic solvency capital required under Article R. 352-5;
“(b) The operational risk capital requirement under section R. 352-8;
"(c) An adjustment under section R. 352-9 to take into account the capacity to absorb losses of prudential technical provisions referred to in section L. 351-2 and deferred taxes.
"Art. R. 352-5.-I.-The basic solvency capital is composed of individual risk modules that are aggregated.
"It includes at least the following risk modules:
“(a) The risk of subscription in non-life;
“(b) The risk of subscription in life;
“(c) Health subscription risk;
"(d) Market risk;
“e) The risk of counterparty.
"The modalities for aggregation of the various risk modules, as well as the component of the basic solvency capital related to risk on intangible assets, are specified in Article 87 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"For the calculation of the modules referred to in a, b and c, insurance and reinsurance operations are assigned to the subscription risk module that best reflects the technical nature of the underlying risks.
"The subscription risk perimeter is defined in Article 113 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"II.-The correlation coefficients applied for the aggregation of the risk modules referred to in I and the calibration of the capital requirements for each risk module result in a total solvency capital that meets the principles set out in R. 352-2.
"III.-Each of the risk modules mentioned in I is calibrated on the basis of a measure of risk value, with a confidence level of 99.5% over a year.
"If applicable, it is taken into account the effects of diversification in the design of each risk module.
"For all insurance and reinsurance companies, the same design and specifications are used for risk modules, both for basic solvency capital and for any simplified calculation referred to in R. 352-10.
"IV.-For the hazards resulting from disasters, geographical specifications may, if applicable, be used for the purposes of calculating the modules "risk of life subscription", "risk of non-life subscription" and "risk of health subscription".
"V.-Subject to the agreement of the Autorité de contrôle prudentiel et de résolution, insurance and reinsurance companies may, when calculating the modules “risk of subscription in life”, “risk of subscription in non-life” and “risk of subscription in health” replace, in the design of the standard formula, a subset of the parameters specified in article 218 of the delegated regulation (EU) no
"These parameters are calibrated on the basis of the internal data of the company concerned or data directly relevant to the operations of this company, based on standardized methods.
"Before agreeing, the Autorité de contrôle prudentiel et de résolution verifies the completeness, accuracy and appropriateness of the data used.
"The procedures for the application of the V are specified in sections 218 to 220 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 352-6.-I.-The basic solvency capital is calculated as follows:
« 1° The "risk of non-life subscription" module reflects the risk of non-life insurance commitments, taking into account the risks covered and the processes applied in the exercise of this activity.
"It takes into account the uncertainty over the results of insurance and reinsurance companies as part of their existing insurance and reinsurance commitments, as well as the new portfolio whose subscription is expected in the next 12 months.
"Its calculation results from a combination of capital requirements applicable to at least submodules corresponding to the risks of loss or unfavourable change in the value of insurance commitments resulting from:
“(a) Fluctuations affecting the date of occurrence, frequency and severity of insured events, as well as the date and amount of claims, the risk of premiums and reserves in non-life;
“(b) Significant uncertainty, related to extreme or exceptional events, which weighs on price and provision assumptions, the risk of a non-life disaster.
“The calculation methods and parameters to be used for the calculation of the module “risk of non-life subscription” are specified in articles 114 to 135 of the Commission’s Delegated Regulation (EU) No. 2015/35 of 10 October 2014;
« 2° The “life subscription risk” module reflects the risk of life insurance commitments, taking into account the risks covered and the processes applied in the exercise of this activity.
"Its calculation is the result of the combination of capital requirements applicable to at least submodules corresponding to the risks of loss or unfavourable change in the value of insurance commitments resulting from:
“(a) Fluctuations affecting the level, tendential evolution or the volatility of mortality rates, when an increase in these rates leads to an increase in the value of insurance commitments, the risk of mortality;
“(b) Fluctuations affecting the level, tendential evolution or the volatility of mortality rates, when a decrease in these rates leads to an increase in the value of insurance commitments, namely the risk of longevity;
"(c) Fluctuations affecting the level, tendential evolution or volatility of the rates of disability, illness and morbidity, the risk of disability-morbidity;
"(d) Fluctuations affecting the level, trend or volatility of expenditures incurred in the management of insurance and reinsurance contracts, i.e. the risk of living expenses;
“e) fluctuations affecting the level, tendential evolution or volatility of the revision rates applicable to annuities, as a result of a change in the legal environment or the health status of the insured person, or the risk of revision;
“(f) Fluctuations affecting the level or volatility of the cessation, maturity, renewal and redemption rates, or the risk of cessation;
“(g) Significant uncertainty, related to extreme or irregular events, which weighs on price and provision assumptions, namely the risk of disaster in life.
“The calculation methods and parameters to be used for the calculation of the module “life subscription risk” are specified in articles 136 to 143 of the Commission’s Delegated Regulation (EU) No. 2015/35 of 10 October 2014;
« 3° The "health subscription risk" module reflects the risk of subscription to health insurance commitments, whether or not it is carried out on a technical basis similar to that of life insurance, taking into account the covered risks and the processes applied in the exercise of this activity.
"It covers at least the risks of loss, or unfavourable change in the value of insurance commitments resulting from:
“(a) Fluctuations affecting the level, trend or volatility of expenditures incurred in the management of insurance and reinsurance contracts;
“(b) Fluctuations affecting the date of occurrence, frequency and severity of insured events, as well as the date and amount of claims made at the time of provision;
"(c) Significant uncertainty related to major epidemics and the unusual accumulation of risks that occur in these extreme circumstances, which weighs on price and provision assumptions.
“The calculation methods and parameters to be used for the calculation of the “health subscription risk” module are specified in articles 144 to 163 of the Commission’s Delegated Regulation (EU) No. 2015/35 of 10 October 2014;
« 4° The “market risk” module reflects the risk associated with the level or volatility of the market value of financial instruments having an impact on the value of the assets and liabilities of the company concerned. It adequately reflects any structural inadequacy between assets and liabilities, particularly in terms of their duration.
"It is calculated as a result of the combination of capital requirements applicable to at least the following submodules:
“(a) The sensitivity of the value of assets, liabilities and financial instruments to changes affecting the interest rate curve or the volatility of interest rates, or the risk of interest rate. The calculation methods and parameters to be used for the calculation of interest rate risk are specified in Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014;
“(b) The sensitivity of the value of assets, liabilities and financial instruments to changes affecting the level or volatility of the market value of equities, i.e. the risk on shares. The calculation methods and parameters to be used for the calculation of the share risk are specified in sections 168.169 and 171 of the Regulations;
"(c) The sensitivity of the value of assets, liabilities and financial instruments to changes affecting the level or volatility of the market value of real estate assets, i.e. the risk on real estate assets. The calculation methods and parameters to be used for the calculation of the risk on real estate assets are specified in section 174 of the Regulations;
"(d) The sensitivity of the value of assets, liabilities and financial instruments to changes affecting the level or volatility of credit margins (“ spreads”) relative to the curve of risk-free interest rates, i.e. the risk associated with margin. The calculation methods and parameters to be used for the calculation of margin risk are specified in sections 175 to 181 of the Regulations;
“e) The sensitivity of the value of assets, liabilities and financial instruments to changes affecting the level or volatility of exchange rates, i.e. the risk of exchange. The calculation methods and parameters to be used for the calculation of the exchange risk are specified in section 188 of the Regulations;
“(f) Additional risks incurred by the insurance or reinsurance company as a result of either a lack of diversification of its asset portfolio or a significant exposure to the risk of default of a single securities issuer or a group of related issuers, or market risk concentrations. The calculation methods and parameters to be used for the calculation of market risk concentrations are specified in sections 182 to 187 of the Regulations.
"The terms and conditions for aggregation of the various submodules of market risk are specified in section 164 of the Regulations;
« 5° The “ counterpart risk” module reflects the potential losses that could result from the unexpected default, or the deterioration of the credit quality, counterparties and debtors of the insurance or reinsurance company over the next 12 months. The “risk of counterpart” module covers risk mitigation contracts, such as reinsurance agreements, securitizations and derivative instruments, and payments to be received from intermediaries, as well as any other credit risk that does not fall under the “risk of margin” submodule. It takes into account, in an appropriate manner, the guarantees or other security rights held by or on behalf of the enterprise and the risks associated with it.
"For each counterparty, the "risk of counterparty" module takes into account the overall exposure to the risk of counterparty in respect of that counterparty, regardless of the legal form of its contractual obligations to that undertaking.
"The calculation methods and parameters to be used for the calculation of the counterparty risk are specified in sections 189 to 202 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"II.-When the calculation of a module or submodule of the required solvency capital is based on the impact of a scenario, the terms and conditions for applying this calculation are defined in Article 83 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"The terms and conditions for the use of an external credit assessment for the calculation of a module or submodule of the required solvency capital are defined in sections 3 to 6 of the Regulations.
"The modalities for taking into account investment funds and other indirect exposures are defined in section 84 of the Regulations.
"The consideration of risk mitigation techniques, as well as the application of these techniques, is defined in sections 208 to 215 of the Regulations.
"Art. R. 352-7.-The submodule "risk on shares" referred to in 4° of I of Article R. 352-6 calculated according to the standard formula includes a symmetrical adjustment mechanism of the standard capital requirement for shares that is used to cover the risk arising from the level variations of the share price. It also takes into account the provisions of Article R. 352-12.
"The symmetrical adjustment of the standard capital requirement for shares, calibrated in accordance with Article R. 352-5 III, which covers the risk resulting from changes in the level of the share price, is based on the current level of an appropriate stock price index and the weighted average of that index. The weighted average is calculated over an appropriate period, which is the same for all insurance and reinsurance companies.
"The symmetrical adjustment of the standard capital requirement for shares that covers the risk arising from changes in the level of the share price may not result in the application of a capital requirement for shares that is higher, or lower, by more than ten percentage points to the standard capital requirement for shares.
"The modalities for calculating this symmetrical adjustment are specified in Article 172 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 352-8.-The operational risk capital requirement reflects operational risks, as these are not already considered in the risk modules referred to in R. 352-5. This requirement is calibrated in accordance with Article R. 352-2.
"In the case of life insurance contracts where the investment risk is borne by the insured, the subscriber or the beneficiary of the contract, the calculation of the operational risk capital requirement takes into account the amount of the annual expenses incurred for the purposes of these insurance commitments.
"In the case of insurance and reinsurance transactions other than those mentioned in the previous paragraph, the calculation of the operational risk capital requirement takes into account the volume of these transactions, in terms of the receipt of prudential premiums and technical provisions referred to in section L. 351-2 that are constituted to meet the related insurance and reinsurance commitments. The operational risk capital requirement does not exceed 30% of the basic solvency capital required for the relevant insurance and reinsurance transactions.
"The terms and conditions for calculating the operational risk capital requirement are specified in Article 204 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 352-9.-The adjustment to take into account the capacity to absorb losses of prudential technical provisions within the meaning of section L. 351-2 and deferred taxes, referred to in section R. 352-4, reflects the potential compensation for unanticipated losses by a simultaneous decrease, either prudential technical provisions or delayed taxes, or a combination of both.
"This adjustment takes into account the risk mitigation effect inherent in the future discretionary participation of insurance contracts, as insurance and reinsurance companies can demonstrate that they have the opportunity to reduce this interest to cover unanticipated losses at the time they occur. The risk mitigation effect of future discretionary participation does not exceed the amount of technical provisions and deferred taxes associated with future discretionary participation.
"For the purposes of the previous paragraph, the value of future discretionary participation calculated in unfavourable circumstances is compared to the value of that interest calculated on the assumptions underlying the calculation of the best estimate.
"The terms and conditions of application of this Article are specified in Articles 205 to 207 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-10.- Insurance and reinsurance companies may make a simplified calculation for a specific submodule or risk module, as long as the nature, magnitude and complexity of the risks to which they are faced warrant it and it would be disproportionate to require these companies to comply with the standard calculation.
"Simplified calculations are calibrated in accordance with the 2° of Article R. 352-2.
"The conditions for the application of the principle of proportionality are defined in Article 88 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"The simplified methodology for calculating the capital requirement of the mortality submodule referred to in paragraph 2 of Article R. 352-6 is defined in section 91 of the Regulations.
"The simplified methodology for calculating the capital requirement of the longevity submodule referred to in paragraph 2 of Article R. 352-6 is defined in section 92 of the Regulations.
"The simplified methodology for calculating the capital requirement of the disability-invalidity submodule referred to in paragraph 2 of Article R. 352-6 is defined in section 93 of the Regulations.
"The simplified methodologies for calculating the capital requirement of the life disaster submodule referred to in Article R. 352-6, 2° I, are defined in Article 96 of the Regulations.
"Simplified methodologies for calculating the capital requirement of the submodule risk related to the margin referred to in the d of 4° of I of section R. 352-6 are defined in section 104 of the Regulations.
"The simplified methods for calculating the counterparty risk referred to in 5° I of section R. 352-6 are defined in sections 107 to 112 of the Regulations.
"The terms and conditions for the application of this Article specific to captive insurance companies referred to in Article L. 350-2 are defined in Articles 89,90,103,105 and 106 of the Regulations.
"Art. R. 352-11.-When the calculation of the solvency capital required according to the standard formula proves inappropriate for an insurance or reinsurance company, because the risk profile of this company significantly departs from the assumptions that underlie this formula of calculation, the Autorité de contrôle prudentiel et de résolution may, by reasoned decision used, require that the company replace a subset of the health parameters These specific parameters are calculated to ensure that the company complies with 2° of Article R. 352-2.
"Art. R. 352-12.- Life insurance companies that:
“(a) Exercising the professional pension provision activities referred to inArticle 7 of Order No. 2006-344 of 23 March 2006 ;
“(b) Or are approved by the Supervisory and Resolution Authority and provide pension benefits paid in reference to retirement, or to the retirement approach, if the premiums paid under these benefits benefit from a tax deduction granted to subscribers or members;
"And on condition:
“(i) That all assets and commitments related to these activities be confined, managed and organized separately from other activities of insurance companies, without any possibility of transfer;
“ii) That the activities of the company referred to in a and b be carried out only in French territory;
“(iii) And that the average duration of the company's commitments to these activities exceeds an average of twelve years.
"Can be authorized by the prudential control authority and resolution to apply to the calculation of the solvency capital required a submodule "risk on shares" that is calibrated by using a measure of the value at risk, over a given period adapted to the usually observed period of retention of investments in shares by the enterprise concerned by ensuring to the subscribers or adherents of the contracts an equivalent level of protection at the level specified in the-2 When calculating the required solvency capital, these assets and commitments are fully taken into account in the assessment of the effects of diversification, without prejudice to the need to preserve the interests of insured persons, subscribers and beneficiaries of contracts in other Member States.
"The provisions of the preceding paragraphs are used only when the company concerned, in terms of its asset management and commitments, has a level of credit and liquidity as well as strategies, processes and reporting procedures to ensure, at all times, that it is able to maintain equity investments for a period commensurate with the period during which it usually retains its equity investments. The company must be in a position to demonstrate to the Autorité de contrôle prudentiel et de résolution that this condition is verified to provide the beneficiaries and contract subscribers with a level of protection equivalent to that provided for in section R. 352-2.
"Insurance and reinsurance companies do not return to the approach described in section R. 352-6, except in duly justified circumstances and provided that the Authority for prudential control and resolution authorizes it.
"The calculation methods and parameters to be used for the calculation of the submodule "Action risk" based on the duration are specified in Article 170 of the Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"The Authority shall decide on the authorization referred to in the first paragraph within three months.
"Subsection 3
“Internal model
"Art. R. 352-13.- Insurance and reinsurance companies accompany any application for approval of an internal model of documentation that determines that this model meets the requirements set out in sections R. 352-18 to R. 352-23.
"Insurance and reinsurance companies may use partial internal models to calculate one or more of the following:
“(a) One or more of the required basic solvency capital risk modules or submodules mentioned in articles R. 352-5 and R. 352-6;
“(b) The operational risk capital requirement defined in section R. 352-8;
"(c) The adjustment provided for in section R. 352-9.
"A partial modelling can also be applied to the entire activity of the insurance and reinsurance company concerned, or only to one or more of its major operational units.
"When the application for approval concerns a partial internal model, the requirements set out in sections R. 352-18 to R. 352-23 are adapted to reflect the limited scope of the model.
"The integration of partial internal models in the calculation of the required solvency capital is done in accordance with Article 239 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 352-14. - A partial internal model is approved by the prudential and resolution control authority only when it meets the requirements set out in section R. 352-13 and the following conditions:
“(a) Its limited scope is duly justified by the company concerned;
“(b) The resulting solvency capital better reflects the company's risk profile and, in particular, meets the requirements set out in sections L. 352-1, R. 352-2 and R. 352-3;
"(c) Its design is consistent with the requirements set out in sections L. 352-1, R. 352-2 and R. 352-3 to allow its full integration into the standard solvency capital calculation formula required.
"When assessing a request for use of a partial internal model covering only certain submodules of a particular risk module or that some operational units of the insurance or reinsurance company with respect to a particular risk module, or both, for part, the Autorité de contrôle prudentiel et de résolution may require this undertaking to submit a realistic transition plan to extend the scope.
"This transition plan outlines how the company plans to extend the scope of its model to other submodules or operational units, to ensure that this model covers a predominant part of its operations with respect to the particular risk module.
"Art. R. 352-15. -In the initial approval procedure of an internal model, the Autorité de contrôle prudentiel et de résolution approves the written policy of modifying the internal model of the company. The companies concerned may modify their internal model in accordance with this policy.
"This policy includes a specification of minor changes and major changes to the internal model.
"The major changes to the internal model, as well as the changes to this policy, are systematically subject to the prior authorization of the Autorité de contrôle prudentiel et de résolution, in accordance with Article L. 352-1.
"The minor modifications of the internal model are not subject to the prior authorization of the Autorité de contrôle prudentiel et de résolution, as they are developed in accordance with this policy.
"Art. R. 352-16.-Once received the approval requested in accordance with Article L. 352-1, insurance and reinsurance companies do not return to the standard formula to calculate all of their solvency capital required or any part of it, except circumstances duly justified and subject to the approval of the prudential control and resolution authority.
"Art. R. 352-17.-If, after receiving the approval required for the use of an internal model from the Authority for prudential control and resolution, an insurance or reinsurance company ceases to comply with the requirements set out in sections R. 352-18 to R. 352-23, it shall promptly submit to the Authority for prudential control and resolution a plan to return to compliance with these requirements without a reasonable period of time or
"When the insurance or reinsurance company does not implement the plan referred to in the previous paragraph, the Supervisory and Resolution Authority may require it to return to the standard formula to calculate its solvency capital required in accordance with sections R. 352-4 to R. 352-11.
"Art. R. 352-18.- Insurance and reinsurance companies demonstrate to the Autorité de contrôle prudentiel et de résolution that they widely use their internal model and that it plays an important role in their governance system, in particular:
“(a) In their risk management system referred to in Article L. 354-2 and in their decision-making processes;
“(b) In their assessment and allocation processes of economic capital and solvency capital, including the valuation referred to in section L. 354-2.
"These companies further demonstrate that the frequency at which the required solvency capital is calculated using the internal model is consistent with the frequency at which their internal model is used for other purposes referred to in the first paragraph.
"It is the responsibility of the Director General or the Director General to ensure the permanent adequacy of the design and operation of the internal model and to ensure that the model continues to adequately reflect the risk profile of the insurance or reinsurance company concerned.
"The terms and conditions for the application of this Article are set out in sections 223 to 227 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-19.-I.-The internal model and, in particular, the calculation of the predictive probability distribution that underlies it meet the criteria set out in 1° to 8° of this article.
« 1° Methods used to calculate predictive probability distribution are based on adequate, applicable and relevant actuarial and statistical techniques and are consistent with the methods used to calculate prudential technical provisions in accordance with Chapter I, section II of this heading.
"The methods used to calculate predictive probability distribution are based on credible current information and realistic assumptions.
"Insurance and reinsurance companies are able to justify, with the Autorité de contrôle prudentiel et de résolution, the assumptions that underlie their internal model;
« 2° The data used for the internal model are accurate, comprehensive and appropriate.
"The relevant insurance and reinsurance companies update at least once a year the data sets they use for the purposes of calculating the predictive probability distribution;
« 3° No specific method is prescribed for the calculation of the predictive probability distribution.
"In addition to the calculation method, the capacity of the internal model to classify the risks is sufficient to ensure that it is widely used and that it plays an important role in the governance system of the insurance or reinsurance enterprise concerned, including in its risk management system and decision-making processes, as well as in the allocation of its capital in accordance with section R. 352-18.
"The internal model covers all important risks to which the insurance or reinsurance company concerned is exposed. It covers at least the risks identified in Article R. 352-2;
« 4° With respect to the effects of diversification, insurance and reinsurance companies may take into account in their internal model dependencies within the given risk categories, as well as between risk categories, provided that the Autorité de contrôle prudentiel et de résolution considers appropriate the system used to measure these effects of diversification;
« 5° Insurance and reinsurance companies can fully take into account the effect of risk mitigation techniques in their internal model, provided that credit risk and other risks arising from the use of risk mitigation techniques are adequately considered in the internal model;
« 6° Insurance and reinsurance companies accurately assess, in their internal model, the particular risks associated with financial guarantees and any contractual option when they are not negligible. They also assess the risks associated with the options available to the insured, subscriber or beneficiary of the contract, as well as the contractual options available to insurance or reinsurance companies. To this end, they take into account the potential impact of possible changes in financial and non-financial conditions on the exercise of these options;
« 7° Insurance and reinsurance companies may take into account, in their internal model, future management decisions that may reasonably be implemented in specific circumstances. In this case, the company concerned takes into account the time required to implement these decisions;
« 8° Insurance and reinsurance companies take into account, in their internal model, all payments to insured persons, subscribers and beneficiaries of the contracts they expect to make, whether or not these payments are contractually guaranteed.
"II.- Statistical quality standards are specified in articles 228 to 237 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-20.-Insurance and reinsurance companies may, for internal modelling purposes, refer to another time horizon or use another measure of risk than those provided for in Article R. 352-2, provided that the results produced by their internal model allow them to calculate the solvency capital required to guarantee insured persons, subscribers and beneficiaries of the contracts a level of protection equal to that provided for.
"If possible, companies directly determine their solvency capital required from the predictive probability distribution generated by their internal model, based on the measurement of the risk value provided for in R. 352-2.
"When companies cannot directly determine their solvency capital required from the projected probability distribution generated by their internal model, the Autorité de contrôle prudentiel et de résolution may authorize the use of approximations in the process of calculating the solvency capital required, provided these companies are able to demonstrate to it that the insured, subscribers and beneficiaries of the contracts benefit from a level of protection equivalent to that provided for in section 352.
"The Autorité de contrôle prudentiel et de résolution may require insurance and reassurance companies to apply their internal model to relevant reference portfolios, using assumptions based on external rather than internal data, in order to control the calibration of the internal model and to verify that its specifications are consistent with generally accepted market practices.
"The terms and conditions for the application of this Article are set out in Article 238 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-21.- Insurance or reinsurance companies shall, at least once a year, examine the origins and causes of profits and losses recorded by each of their major operational units.
"They demonstrate to the Autorité de contrôle prudentiel et de résolution how the categorization of risks in their internal model explains the origins and causes of these profits and losses. Risk categorization and the attribution of profits and losses reflect the risk profile of insurance or reinsurance companies.
"The terms and conditions for the application of this Article are set out in Article 240 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-22.- Insurance and reinsurance companies put in place a regular cycle of validation of their model, which includes monitoring the operation of the internal model, checking the permanent adequacy of its specifications and a confrontation of the results it produces from the experience.
"The model validation process includes an effective statistical process of validation of the internal model allowing insurance and reinsurance companies to demonstrate to the Autorité de contrôle prudentiel et de résolution that the resulting capital requirements are appropriate.
"The statistical methods used are used to verify the appropriateness of the predictive probability distribution in relation not only to the loss history, but also to all significant new data and information.
"The model validation process includes an analysis of the stability of the internal model and, in particular, a test of the sensitivity of the results it produces to a modification of the fundamental assumptions underlying it. It also includes an assessment of the accuracy, completeness and appropriateness of the data used in the internal model.
"This validation process and its parameters are specified in articles 241 and 242 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 352-23.- Insurance and reinsurance companies prepare documentation describing the details of the design and operation of their internal model.
"This documentation demonstrates that the company is satisfied with R. 352-18 at R. 352-22. It provides a detailed description of the theory, assumptions and mathematical and empirical foundations that underpin the internal model. It refers to all circumstances under which the internal model does not work effectively.
"These companies provide documentary monitoring of any major changes to their internal model, in accordance with R. 352-15.
"Documentation requirements are set out in sections 243 to 246 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 352-24.-The use of a model or data from a third party does not exempt insurance and reinsurance companies from the requirements applicable to the internal model referred to in sections R. 352-18 to R. 352-23.
"The terms and conditions for the application of this Article are set out in Article 247 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Subsection 4
« Additional capital requirement
"Art. R. 352-26.-The additional capital requirement referred to in 1° and 2° of Article L. 352-3 is calculated to ensure that the company complies with Article L. 352-1.
"The additional capital requirement referred to in 3° I of Article L. 352-3 is proportionate to the significant risks arising from the deficiencies that justified the decision of the prudential control and resolution authority to impose it.
"The additional capital requirement referred to in 4° I of section L. 352-3 is proportionate to the significant risks arising from the deviation referred to in the same section.
"In the cases referred to in the 2nd and 3rd of the I of Article L. 352-3, the Autorité de contrôle prudentiel et de résolution ensures that the company implements the means necessary to remedy the deficiencies that led to the imposition of an additional capital requirement.
"The prudential and resolution control authority shall review the additional capital requirement referred to in Article L. 352-3 at least once a year. It decides to end this requirement once the company has remedied the deficiencies that led to its implementation.
"Subsection 5
“Transitional measures
"Art. R. 352-27.-I.- Subject to the application of the provisions of sections L. 352-1, R. 352-2 and R. 352-5, the following rules apply:
“(a) Until 31 December 2017, the standard parameters to be used to calculate the concentration risk submodule and the margin risk submodule according to the standard formula are the same, for the exhibitions on the central administrations and central banks of the Member States that are labeled and financed in the national currency of any Member State, as those that would apply to such exhibitions labelled and financed in their national currency;
“(b) In 2018, the standard parameters to be used to calculate the concentration risk submodule and the margin risk submodule according to the standard formula are reduced by 80 per cent for exposures on central administrations and central banks of the Member States that are labelled and financed in the national currency of any other Member State;
"(c) In 2019, the standard parameters to be used to calculate the concentration risk submodule and the margin risk submodule according to the standard formula are reduced by 50 per cent for exposures to central administrations and central banks of the Member States that are labelled and financed in the national currency of any other Member State;
"(d) As of January 1, 2020, the standard parameters to be used to calculate the concentration risk submodule and the margin risk submodule according to the standard formula are not reduced for exposures on the central administrations and central banks of the Member States that are labelled and financed in the national currency of any other Member State.
"II.-Without prejudice to Articles L. 352-1, R. 352-2 and R. 352-5, when calculating the submodule of risk on shares according to the standard formula without the option provided for in Article R. 352-12, the standard parameters to be used for the shares referred to in Article 173 of the Commission's Delegated Regulation (EU) n° 2015/35 of 10 October 2014, when these shares were acquired directly by
“(a) Standard parameters to be used for the calculation of the share risk submodule in accordance with Article R. 352-12;
“(b) And the standard parameter to be used for the calculation of the share risk submodule according to the standard formula without the option provided in article R. 352-12.
"The coefficient assigned to the parameter referred to in b is increased in a way that is at least linear at the end of each year, from 0% for the year beginning January 1, 2016 to 100% as of January 1, 2023.
"Art. R. 352-28.-I.- During the transitional period referred to in section L. 352-4, the required solvency capital referred to in section L. 352-1 shall be calculated taking into account all the quantifiable risks to which the undertaking is exposed, with the exception of the risks related to the transactions referred to in sections L. 143-1 and L. 310-14, to the article L. 222-3 the code of mutuality andArticle L. 932-40 of the Social Security Code for which it is established one or more auxiliary assignment accounts in accordance with theArticle L. 143-4 of the Insurance Code, to thearticle L. 222-6 of the mutuality code and to theArticle L. 932-43 of the Social Security Code. For each of the sub-assignment accounts related to these transactions, a minimum margin requirement is calculated in accordance with the provisions of Book III title III in effect as of December 31, 2015.
"For each of the auxiliary assignment accounts relating to transactions referred to in the sections L. 143-1 and L. 310-14 the insurance code,article L. 222-3 of the mutuality code and to theArticle L. 932-40 of the Social Security Code, the margin of credit is equal to the difference between the counter-value of the assets assigned to the contracts under this auxiliary assignment accounting, assessed in accordance with the provisions of Articles R. 343-9 and R. 343-10 when it comes to commitments expressed in euros, according to the provisions of Articles R. 343-13 when it comes to commitments expressed in units of account and according to the provisions of Articles R.43-11Article L. 143-5 of the Insurance Code, to thearticle L. 222-7 of the mutuality code and to theArticle L. 932-44 of the Social Security Codeand supplemented, as appropriate, by the elements listed in the III of R. 334-11 of insurance codeand under the conditions mentioned in this article.
"II.- During the transitional period referred to in Article L. 352-4, the solvency of companies carrying on operations referred to in Articles L. 143-1 and L. 310-14 the insurance code,article L. 222-3 of the mutuality code and to theArticle L. 932-40 of the Social Security Code is equal to the difference between:
“(a) The sum of the solvency margin(s) of the transactions referred to in sections L. 143-1 and L. 310-14 in section L. 222-3 the code of mutuality andArticle L. 932-40 of the Social Security Code, constituted for each auxiliary assignment accounting in accordance with the terms of the second paragraph of I of this Article, and of the eligible equity of the enterprise for all such other transactions, calculated according to the provisions of section 3 of chapter III of title V of Book III of this Code; and
“(b) The sum of the minimum margin requirements or requirements of the operations referred to in sections L. 143-1 and L. 310-14, in section L. 222-3 the code of mutuality andArticle L. 932-40 of the Social Security Code and the solvency capital required under all other operations of the company.
"III.-For the purpose of controlling the application of the provisions set out in I and II, the various auxiliary assignment accounts relating to the transactions referred to in Articles L. 143-1 and L. 310-14, in Article L. 222-3 the code of mutuality andArticle L. 932-40 of the Social Security Code and the solvency of enterprises carrying out such transactions are the subject of a transmission of information to the Autorité de contrôle prudentiel et de résolution in the form of specific quantitative states whose format is defined by the Autorité.
“Section 2
" Minimum capital required
"Art. R. 352-29.-I.-The minimum capital requirement is calculated in accordance with the following principles:
“(a) It is calculated in a clear and simple way, and so that this calculation can be verified;
“(b) It corresponds to an eligible base amount of equity that would be subject to an unacceptable level of risk if the insurance or reinsurance company was authorized to continue its business;
"(c) The linear function, referred to in II, used to calculate it, is calibrated according to the risk value of the basic funds of the insurance or reinsurance company concerned, with a confidence level of 85% on the horizon of a year;
"(d) It has an absolute floor threshold:
“(i) Of 2,500 000 euros for non-life insurance companies, including captive insurance companies, except in the case where all or part of the risks mentioned in one of the branches referred to in R. 321-1 or R. 321-1 10-15 or 15 of article R. 211-2 of the mutuality code are covered, in which case it cannot be less than 3,700,000 euros;
“ii) 3,700,000 euros for life insurance companies, including captive insurance companies;
“(iii) Of Euro3,600,000 for reinsurance companies, except in the case of captive reinsurance companies, in which case this floor threshold cannot be less than Euro1,200,000;
“(iv) Corresponding to the sum of the amounts set out in points i and ii for insurance companies practicing both the risks mentioned in 1° and 2° of Article L. 310-1.
"II.-Subject to the provisions of the III, the minimum required capital shall be calculated as the linear function of a set or subset of the following variables: prudential technical provisions of the undertaking referred to in section L. 351-2, subscribed premiums, capital under risk, deferred taxes and administrative expenses. The variables used are measured deducted from reinsurance.
"III.-Without prejudice to the d of I, the minimum required capital shall be between 25% and 45% of the required solvency capital of the undertaking, calculated in accordance with subsection 2 of section 1 of this chapter and including any additional capital imposed in accordance with section L. 352-3.
"The Autorité de contrôle prudentiel et de résolution may require, until December 31, 2017 at the latest, that an insurance or reinsurance company apply the percentages provided in the first paragraph exclusively for the solvency capital required of the undertaking calculated in accordance with section 1, subsection 2 of this chapter.
"IV.- Insurance and reinsurance companies calculate their minimum required capital at least once per quarter and transmit the result of this calculation to the Authority for prudential control and resolution, in accordance with the terms set out in Article L. 355-1.
"V.-The terms and conditions of application of this Article are specified in Articles 248 to 253 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
“Section 3
“Undocumented companies
"Art. R. 352-30.-When the Autorité de contrôle prudentiel et de résolution suspends, restricts or temporarily prohibits the free disposition of all or part of the assets of a company pursuant to the 4 of Article L. 612-33 of the monetary and financial code, and that this measure is taken because the insurance or reinsurance company does not comply with the provisions of section 2 of chapter I of this title, it shall inform the supervisory authorities of the Member States concerned in advance.
"When the Autorité de contrôle prudentiel et de résolution temporarily suspends, restricts or prohibits the free disposition of all or part of the assets of a company pursuant to 4 of Article L. 612-33 of the monetary and financial code, and that this measure is taken because, in exceptional circumstances, the Autorité considers that the financial situation of the company concerned will continue to deteriorate despite the measures referred to in the third paragraph of Article L. 352-7, it shall inform the supervisory authorities of the Member States concerned and request them to take the same measures.
"When the Autorité de contrôle prudentiel et de résolution temporarily suspends, restricts or prohibits the free disposition of all or part of the assets of a company pursuant to 4 of Article L. 612-33 of the monetary and financial code, and that this measure is taken when the minimum of capital required is no longer in accordance with the provisions of Article L. 352-5, or if it may not be in the next three months, it shall inform the supervisory authorities of the host Member States concerned and request them to take the same measures.
"Art. R. 352-31.-The extension period referred to in the fourth paragraph of L. 352-7 shall be determined taking into account all relevant factors specified in Article 289 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014. This extension cannot exceed seven years.
"Art. R. 352-32.-The application referred to in the fifth paragraph of Article L. 352-7 shall be made if the following conditions are met:
“(a) It is unlikely that insurance or reinsurance companies representing a significant share of the market or affected business lines may meet the requirements referred to in the third paragraph of section L. 352-7;
“(b) The financial situation of insurance or reinsurance companies representing a significant share of the market or of the affected business lines is affected by the serious or detrimental effects of an unexpected, pronounced and abrupt decline in financial markets, or a lasting context of low interest rates, or a catastrophic event with serious implications.
"Art. R. 352-33.-When the Autorité de contrôle prudentiel et de résolution requires an insurance or reinsurance company a recovery strategy under theArticle L. 612-32 of the monetary and financial code, or a recovery plan pursuant to section L. 352-7, or a short-term funding plan pursuant to section L. 352-8, it shall include, for the next three fiscal years, a detailed description of the following elements and be accompanied by supporting documentation:
« 1° A forecast estimate of management costs, including current overhead costs and commissions;
« 2° A plan detailing revenue and expenditure forecasts for direct business, reinsurance acceptances and reinsurance transfers;
« 3° A forecasted assessment valued in accordance with Book III title IV and a forecasted assessment valued in accordance with Article L. 351-1;
« 4° An estimate of the financial resources to be used to cover prudential technical provisions as well as the required solvency capital and the minimum capital requirement;
« 5° Where applicable, the general written policy on reinsurance or surrender.
"Art. R. 352-34.- Where the undertakings referred to in Article L. 310-3-1, which are authorized to practise the transactions referred to in Article L. 310-1, no longer have sufficient equity eligible to cover their solvency capital required or their minimum capital required or that they have informed the Authority of prudential control and resolution, in accordance with the provisions of the articles
"Art. R. 352-34-1.-Where the Authority of prudential control and resolution suspends, restricts or temporarily prohibits the free disposition of all or part of the assets of an insurance company, pursuant to the 4° of Article L. 612-33 of the monetary and financial code, it may also have the mortgage referred to in Article L. 327-3 of this Code registered on the properties of this undertaking,article L. 212-24 of the mutuality code or to theArticle L. 931-23 of the Social Security Code.
“Section 4
" Mixed insurance companies
"Art. R. 352-35.-I.-Without prejudice to articles L. 352-1 and L. 352-5, insurance companies operating both the risks mentioned in 1° and 2° of Article L. 310-1 calculate:
“(a) A notional amount of the minimum capital required for life, for their life insurance or reinsurance activities, calculated as if the company concerned was operating only these activities; and
“(b) A notional amount of the minimum capital required in non-life, for their non-life insurance or reinsurance activities, calculated as if the company concerned was only carrying out these activities.
"These notional amounts are calculated in accordance with Article 252 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, subject to the application of Article 253 of the Regulations.
"II.-At a minimum, the insurance companies referred to in I of this section cover the following requirements by an equivalent amount of eligible core funds:
“(a) The notional amount of the minimum capital required for life, for life activity;
“(b) The notional amount of the minimum capital required in non-life, for non-life activity.
"The minimum financial obligations referred to in the preceding paragraphs, relating to life insurance activity and non-life insurance activity, cannot be borne by the other activity.
"Insurance companies establish a document in which the eligible base equity elements covering each notional amount of the minimum required capital referred to in I are clearly identified in accordance with section R. 351-26.
"If the amount of eligible core funds allocated to one of the activities is not sufficient to cover the minimum financial obligations referred to in the first paragraph, insurance companies may, except as opposed to the prudential and resolution authority, use the explicit elements of eligible equity still available for one or the other activity.
"When this transfer does not allow the insurance company to cover its minimum financial obligations, the Autorité de contrôle prudentiel et de résolution applies to the deficit activity the measures provided for in Article L. 352-8 regardless of the results obtained in the other activity.
"As long as the minimum financial obligations referred to in this II are fulfilled and subject to informing the Authority of prudential control and resolution, the company may use, to cover the required solvency capital referred to in Article L. 352-1, the explicit elements of eligible equity still available for one or the other activity.
“Chapter III
“Investments
"Art. R. 353-1.-I.-For the entire asset portfolio, insurance and reinsurance companies invest only in assets and instruments with risks that they can identify, measure, monitor, manage, control and report adequately and take into account appropriately in assessing their overall solvency need in accordance with section R. 354-3.
"All assets are invested to ensure the safety, quality, liquidity and profitability of the entire portfolio. In addition, the location of these assets must ensure their availability.
"The assets held for the purposes of the coverage of prudential technical provisions referred to in Article L. 351-2 are also invested in a manner appropriate to the nature and duration of their insurance and reinsurance commitments. These assets are invested to the best of the interests of all insured persons, subscribers and beneficiaries of the contracts, taking into account any objective of the company's investment policy.
"In the event of a conflict of interest, insurance companies or entities that manage their portfolio of assets, ensure that the investment is made to the best of the interests of the insured, subscribers and beneficiaries of the contracts.
"II.-Where benefits related to the life insurance contract or the variable capitalization contract include a financial performance guarantee or any other guaranteed benefit, the assets held to cover the prudential technical provisions referred to in Article L. 351-2 corresponding additional are subject to the provisions of the III.
"III.- Without prejudice to the provisions of I, for assets other than those under II, the second to fifth paragraphs of this III shall apply.
"The use of derivative instruments is possible to the extent they contribute to reducing risks or promoting effective portfolio management.
"Investments and assets that are not allowed to negotiate on a regulated financial market are maintained at prudent levels.
"The assets are subject to appropriate diversification so as to avoid excessive dependency on an asset, issuer or group of particular companies or a given geographic area and to avoid excessive cumulative risks across the portfolio.
"Investments in assets emitted by a single issuer or by issuers belonging to the same group do not expose insurance companies to excessive risk concentration.
"Art. R. 353-2.-In order to ensure consistency between the sectors and to eliminate differences of interest between, on the one hand, companies that recondition loans in negotiable securities and other financial instruments and, on the other hand, insurance or reinsurance companies that invest in these securities or instruments, the quantitative and qualitative requirements that must be met by the companies investing in these securities".
"Art. R. 353-3.-In respect of insurance and reinsurance companies that invest in negotiable securities or other financial instruments based on reconditioned borrowings that were issued prior to January 1, 2011, the requirements referred to in section R. 353-2 apply only if underlying exhibitions were replaced or supplemented by new exhibitions after December 31, 2014.
"Art. R. 353-4.-Insurance companies may not grant real rights to their buildings unless exceptionally authorized by the Autorité de contrôle prudentiel et de résolution.
"Art. R. 353-5.-The provisions of section R. 332-16 apply to insurance companies referred to in section L. 310-3-1.
“Chapter IV
“ Governance system
"Art. R. 354-1.- Insurance and reinsurance companies review the written policies referred to in section L. 354-1 at least once a year. These policies are subject to prior approval by the Board of Directors or Supervisory Board as appropriate. They are adapted to take into account any significant changes affecting the system or domain concerned.
"For each of the powers of the Board of Directors, Management and Control pursuant to the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, written policies specify whether it is the responsibility of the Board of Directors or the Director General or, where appropriate, the Supervisory Board or the Director, without prejudice to the other provisions of this title.
"Art. R. 354-2.-I.-The risk management system referred to in Article L. 354-2 includes the information strategies, processes and procedures necessary to detect, measure, control, manage and report on a permanent basis the risks, at the individual and aggregate levels, to which companies are or may be exposed and the interdependencies between these risks.
"This system is integrated with the organizational structure and decision-making procedures of the company and duly taken into account by those who actually run the business or are responsible for the key functions referred to in Article L. 354-1.
"It covers the risks to be considered in the calculation of the solvency capital required in accordance with section R. 352-2 and the risks that do not enter or enter fully into this calculation.
"It covers, at a minimum, subscription and provisioning, asset-liability management, investments, particularly in term financial instruments, liquidity and concentration risk management, operational risk management, reinsurance and other risk mitigation techniques. These areas are also specified by the written policies referred to in Article L. 354-1.
"II.-When insurance or reinsurance companies apply the equalizer adjustment referred to in R. 351-4 or the volatility correction referred to in R. 351-6, they establish a liquidity plan that includes a forecast of incoming and outgoing cash flow in respect of assets and liabilities subject to these adjustments and corrections.
"Art. R. 354-2-1.-I.-In terms of asset and liability management, insurance and reinsurance companies regularly assess the sensitivity of their prudential technical provisions and their funds specific to the assumptions underpinning the extrapolation of the curve of the irrelevant interest rates referred to in R. 351-3.
"II.-In the event of the application of the equalizer adjustment referred to in R. 351-4, companies regularly assess the sensitivity of their prudential technical provisions and their own funds eligible for the assumptions underpinning the calculation of the equalizer adjustment, including the calculation of the basic margin referred to in R. 351-5, and the potential effects of a forced sale of eligible assets on their own funds. They also assess the sensitivity of their prudential technical provisions and their own funds eligible for changes in the composition of the assigned asset portfolio as well as the consequences of a reduction in the equalizer adjustment to zero.
"III.-In the event of the application of the volatility correction referred to in R. 351-6, companies regularly assess the sensitivity of their prudential technical provisions and their own funds eligible for the assumptions underpinning the calculation of the volatility correction and the potential consequences of a forced sale of assets on their eligible funds as well as the consequences of a zero volatility reduction.
"IV.-Companies submit annually the evaluations referred to in I, II and III to the Authority for prudential and resolution control as part of the communication of information referred to in Article L. 355-1. In the event that the reduction of the equalizer adjustment or zero volatility correction would result in the lack of coverage of the required solvency capital, the company also submits an analysis of the measures it could take to restore the level of eligible equity corresponding to the required solvency capital or to reduce the risk profile in order to ensure compliance with the required solvency capital.
"V.-When the volatility correction referred to in section R. 351-6 is applied, the written risk management policy referred to in section L. 354-1 sets out the criteria for applying the volatility correction.
"Art. R. 354-2-2.-In respect of investment risk, insurance and reinsurance companies must be able to demonstrate that they meet the requirements of Chapter III of this title.
"Art. R. 354-2-3.- Insurance and reinsurance companies structure the risk management function referred to in section L. 354-1 to facilitate the implementation of the risk management system.
"Art. R. 354-2-4.-When insurance and reinsurance companies use external credit assessments for the calculation of prudential technical provisions and solvency capital requirements, they verify, as part of their risk management, the validity of these assessments by using, where appropriate, additional assessments.
"Art. R. 354-2-5.-The risk management function of insurance and reinsurance companies that use a partial or integral internal model approved in accordance with sections L. 352-1 and R. 352-14, covers the design, implementation, testing and validation tasks of the internal model, the documentary monitoring of this model and any changes made to it, as well as the analysis of the performance of this internal model and the production
"The purpose of the risk management function is to inform the Director General or the Executive Director of the performance of the internal model and to suggest any improvements that may be made to it. It also provides the Director General or the Director General with a state of progress in addressing the weaknesses that may have been detected. All of these elements are transmitted to the Board of Directors or Supervisory Board by the Director General or the Director General.
"Art. R. 354-3.-The internal assessment of the risks and solvency referred to in Article L. 354-2 shall include at least:
“(a) The overall need for solvency, taking into account the specific risk profile, approved risk tolerance limits and the business strategy of the company;
“(b) Continuous compliance with the capital requirements referred to in Chapter II of this Title and the requirements for prudential technical provisions set out in Chapter I, Section 2 of this Title;
"(c) The difference between the company's risk profile and the assumptions underlying the solvency capital required under section R. 352-2, calculated using the standard formula in accordance with subsection 2 of section 1 of Chapter II of this Title, or with a partial or integral internal model in accordance with subsection 3 of section 1 of Chapter II of this Title.
"Art. R. 354-3-1.-In order to assess the overall need for solvency referred to in section R. 354-3, companies establish procedures that are proportionate to the nature, extent and complexity of the risks inherent in their activity and that allow them to identify and assess the risks to which they are exposed, or to which they may be exposed. Companies demonstrate the relevance of the methods they use for this evaluation.
"Art. R. 354-3-2.- Insurance and reinsurance companies applying the equalizer adjustment referred to in section R. 351-4, the volatility correction referred to in section R. 351-6 or the transitional measures referred to in sections L. 351-4 and L. 351-5, shall assess their compliance with the capital requirements referred to in section R. 354-3, both taking into account and without taking into account these adjustments
"Art. R. 354-3-3.-When an internal model is used, the internal risk and solvency assessment makes it possible to reconcile the internal risk measures with the solvency capital required.
"Art. R. 354-3-4.-The internal risk and solvency assessment is an integral part of the business strategy of insurance and reinsurance companies. These companies systematically take this into account in their strategic decisions.
"The companies conduct this internal assessment at least once a year and in the event of significant changes in their risk profiles.
"They inform the Authority of prudential control and resolution of the conclusions of each internal risk and solvency assessment, as part of the information they must provide to that authority pursuant to Article L. 355-1.
"Art. R. 354-4.-The internal control system referred to in section L. 354-2 includes at least administrative and accounting procedures, an internal control framework, appropriate information provisions at all levels of the enterprise and a compliance verification function referred to in section L. 354-1.
"Art. R. 354-4-1.-The compliance verification function referred to in section L. 354-1 is intended to advise the Director General or the Director General and the Board of Directors or the Supervisory Board on all matters relating to compliance with the legislative, regulatory and administrative provisions relating to access to and exercise of insurance and reinsurance activities.
"This function also aims to assess the potential impact of any change in the legal environment on the operations of the company concerned, as well as to identify and assess the risk of compliance.
"Art. R. 354-5.-The internal audit function referred to in Article L. 354-1 assesses the adequacy and effectiveness of the internal control system and other elements of the governance system. This function is carried out in an objective and independent manner of operational functions.
"The findings and recommendations of the internal audit, as well as the proposals for actions arising from each of them, are communicated to the board of directors or to the supervisory board by the Director General or the Director General. The Director General or the Director General shall ensure that these actions are completed and reported to the Board of Directors or the Supervisory Board.
"Art. R. 354-6.-The actuarial function referred to in Article L. 354-1 is intended to coordinate the calculation of prudential technical provisions, to ensure the appropriateness of the methodologies, underlying models and assumptions used for the calculation of prudential technical provisions, to assess the sufficiency and quality of the data used in the calculation of these provisions, to supervise this calculation in the cases mentioned above.
"It provides an opinion on the overall subscription policy and the adequacy of reinsurance arrangements. It contributes to the effective implementation of the risk management system referred to in section L. 354-2, particularly with regard to risk modelling underpinning the calculation of capital requirements under sections 1 and 2 of Chapter II of this title and the internal assessment of the risks and solvency referred to in section L. 354-2.
"It shall inform the Board of Directors or the Supervisory Board of the reliability and adequacy of the calculation of prudential technical provisions under the conditions set out in section L. 322-3-2 and articles L. 211-13 of the mutuality code and L. 931-7-1 of the Social Security Code.
"Art. R. 354-6-1.-The actuarial function requires persons who exercise it a degree of knowledge of actuarial and financial mathematics corresponding to the nature, extent and complexity of the risks inherent in the activity of insurance or reinsurance companies and who can demonstrate a relevant experience in terms of professional standards and other applicable standards.
"Art. R. 354-7.-I.-S shall be deemed to be significant or critical operational activities or functions within the meaning of Article L. 354-3, the key functions referred to in Article L. 354-1 and those whose interruption is likely to have a significant impact on the activity of the company, its ability to effectively manage the risks or to question the conditions of its approval under the following elements:
“(a) The cost of outsourced activity;
“(b) The financial, operational and reputational impact of the service provider's inability to deliver the service within the specified time frame;
"(c) The difficulty of finding another provider or resuming live activity;
"(d) The company's ability to meet regulatory requirements in the event of problems with the provider;
“e) Potential losses for insured persons, subscribers or beneficiaries of contracts or re-assigned companies in the event of a default of the provider.
“II.-Do not be considered important or critical operational activities or functions, including:
“(a) Provision to the company of advisory services and other services not included in the activities covered by its approval, including the provision of legal advice, the training of its staff, billing services and the security of the premises and personnel of the company;
“(b) The purchase of standard services, including services providing market information or data flows on prices.
"Art. R. 354-8.-For insurance and reinsurance companies that enter into limited financial reinsurance contracts or operate limited financial reinsurance activities referred to in Article L. 310-1-1 and articles L. 111-1-1 of the mutuality code and L. 931-1-1 of the Social Security Code, the risk management system that they put in place, in accordance with section L. 354-2, shall enable the identification, measurement, monitoring, management, control and appropriate reporting of the risks arising from these contracts or activities.
“Chapter V
"Information to be provided to the Autorité de contrôle prudentiel et de résolution and to the public
“Section 1
"Information to be provided to the Autorité de contrôle prudentiel et de résolution
"Subsection 1
“General provisions
"Art. R. 355-1.-The information transmitted to the Authority for prudential control and resolution pursuant to Article L. 355-1 is previously approved:
“(a) For the solvency and financial situation report, by the bodies mentioned in the first paragraph of Article R. 355-7;
“(b) For the regular report to the controller, by the board of directors or the supervisory board;
"(c) For annual and quarterly quantitative statements, by the Director General or the Director General;
"(d) For the report to the supervisory authority on the internal risk and solvency assessment, by the board of directors or the supervisory board.
"States submitted periodically to the Autorité de contrôle prudentiel et de résolution, other than those defined in the preceding paragraphs and that the Autorité determines in accordance with the first paragraph of Article L. 612-24 of the Monetary and Financial Code, are previously approved by the Director General or the Director General.
"Art. R. 355-1-1.-As long as the statements, tables or documents referred to in section L. 355-1 are based on accounting data, the balances of the accounts used by the company must be connected directly or by consolidation.
"Art. R. 355-2.-The requirements in terms of content, deadline and terms of transmission of information referred to in Article L. 355-1 are specified in sections 290 to 297,300,301,303 and 304 to 314 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 355-3.-In accordance with the sixth paragraph of Article L. 355-1, and without prejudice to the provisions of Article R. 352-29, the Autorité de contrôle prudentiel et de résolution may limit the regular communication of information for control purposes whose periodicity is less than one year, when the provision of this information would represent a disproportionate burden for the company in view of the nature, scope and
"In respect of companies subject to group control pursuant to Article L. 356-2, the Autorité de contrôle prudentiel et de résolution may limit the regular communication of information for control purposes whose periodicity is less than one year, when such undertakings apply. This request must demonstrate that the regular communication of information to this periodicity is not appropriate given the nature, scope and complexity of the risks inherent in the group's activity. It must be filed with the prudential and resolution control authority at least seven months before the beginning of the period on which this information is carried. In this case, the Authority shall decide on this application three months before the beginning of the period concerned.
"In the event that the Control and Resolution Authority is not a group controller, it consults the group controller and takes into account the opinions and reservations expressed, if any, by the group controller.
"For the purposes of the provisions of this Article, all organizations receiving a communication exemption shall not account for more than 20% of the gross non-life insurance premiums issued by all the companies referred to in Article L. 310-1 or 1° of Article L. 310-1-1, of the mutuals and unions governed by Book II of the Code of Mutuality and the Institutions of Pregnancy
"When determining the eligibility of the companies concerned to the exemptions mentioned in this article, the Autorité de contrôle prudentiel et de résolution gives priority to the smallest companies.
"Art. R. 355-4.-In accordance with the sixth paragraph of Article L. 355-1, and without prejudice to provisions of Article L. 612-24 of the Monetary and Financial Code, the Control and Resolution Authority may limit or exempt insurance or reinsurance companies from regular line-to-line information communication, where:
“(a) The provision of this information would be a disproportionate burden given the nature, extent and complexity of the risks inherent in the business activity of the company;
“(b) The provision of this information is not necessary for the effective control of the company;
"(c) The dispensation does not undermine the stability of the financial systems involved in the Union;
"(d) The company is able to provide information on an ad hoc basis; and
“e) For companies subject to group control pursuant to Article L. 356-2, the provision of this information would be inappropriate given the nature, scope and complexity of the risks inherent in the activity of the group and given the objective of financial stability at the Union level. In this case, where the Prudential and Resolution Authority is not a group controller, it consults the group controller and takes due account of the opinion and reservations expressed as appropriate by the group controller.
"For the purposes of the provisions of this Article, all organizations receiving a communication exemption shall not account for more than 20% of the gross premiums issued with non-life insurance issued by all enterprises referred to in Article L. 310-1 or 1° of Article L. 310-1-1, of the mutuals and unions governed by Book II of the Code of Mutual Services and of the institutions of the Associations of Pregnancies
"When determining the eligibility of the companies concerned to the limitations mentioned in this article, the Autorité de contrôle prudentiel et de résolution gives priority to the smallest companies.
"Art. R. 355-5.-In the implementation of the provisions of sections R. 355-3 and R. 355-4, the Autorité de contrôle prudentiel et de résolution assesses whether the provision of information represents, for insurance or reinsurance companies, a disproportionate burden, in the light of the nature, magnitude and complexity of the risks to which companies are exposed, at least in the light of:
“(a) The volume of premiums, technical provisions and assets of the company;
“(b) The volatility of claims and compensation covered by the company;
"(c) Market risks to which the investments of the company take place;
"(d) Level of risk concentration;
“e) Total number of life and non-life insurance branches for which approval is granted;
“(f) Potential effects of the management of the company's assets on financial stability at the Union level;
“(g) Systems and structures of the company enabling it to communicate information for the purposes of control and written policy, guaranteeing the adequacy of this information on an ongoing basis;
“(h) The adequacy of the corporate governance system;
“(i) From the level of equity covering the required solvency capital and the minimum capital required;
“j) Whether or not the company is a captive insurance or reinsurance company covering only the risks associated with the commercial or industrial group to which it belongs.
"Subsection 2
“Transitional provisions
"Art. R. 355-6.-I.-Until 1 January 2020, insurance or reinsurance companies transmit to the Authority of prudential and resolution the report on solvency and financial situation, the regular report to the controller and the annual quantitative statements referred to in Article L. 355-1 according to the following schedule:
“(a) No later than 20 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2016 and January 1, 2017;
“(b) No later than 18 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2017 and January 1, 2018;
"(c) No later than 16 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2018 and June 29, 2019;
"(d) No later than 14 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2019 and January 1, 2020.
"II.-Until 1 January 2020, insurance or reinsurance companies shall transmit to the Authority of prudential and resolution the quarterly quantitative statements referred to in Article L. 355-1, according to the following schedule:
“(a) No later than 8 weeks after the end of the quarter, for quarterly exercises closed between January 1, 2016 and January 1, 2017;
“(b) No later than 7 weeks after the end of the quarter, for quarterly exercises closed between January 2, 2017 and January 1, 2018;
"(c) No later than 6 weeks after the end of the quarter, for quarterly periods between January 2, 2018 and June 29, 2019;
"(d) No later than 5 weeks after quarter-end, for quarters closed between June 30, 2019 and January 1, 2020.
"III.-A effective 1 January 2020, the deadlines for the transmission of the information referred to in I and II are provided by Article 312 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
“Section 2
« Information to the public
"Subsection 1
“General provisions
"Art. R. 355-7.-The report on solvency and financial situation referred to in section L. 355-5 is approved by the Board of Directors or the Supervisory Board. It contains the following information, either in extenso or by direct reference and accurate to equivalent information, both in their nature and in their scope, to those published under other legislative or regulatory provisions:
“(a) A description of the company's activity and results;
“(b) A description of the governance system and an appreciation of its adequacy to the corporate risk profile;
"(c) A description, made separately for each risk category, risk exposure, risk concentrations, risk mitigation and risk sensitivity;
"(d) A description, made separately for assets, prudential technical provisions and other liabilities, of the bases and methods used for their assessment, together with an explanation of any major difference existing with the bases and methods used for their evaluation in the financial statements;
“e) A description of how capital is managed, including at least the following:
“(i) The structure of clean funds;
“ii) The amounts of the solvency capital required and the minimum capital required;
“(iii) The option set out in section R. 352-12 used if applicable for the calculation of the solvency capital required;
“(iv) Information to understand the main differences between the underlying assumptions of the standard formula and those of any internal model used by the company to calculate its solvency capital required;
“(v) In the event of a failure to meet the minimum requirement of required capital or a serious breach of the required solvency capital requirement, which occurred during the period under review, the amount of the difference found, even if the problem was subsequently resolved, with an explanation of its origin and consequences, as well as any corrective action taken.
"In the event that the equalizer adjustment referred to in R. 351-4 is applied, the description referred to in d includes a description of the equalizer adjustment and bond portfolio, a description of the assets of the assigned portfolio to which the equalizer adjustment applies, and a quantification of the effects of a cancellation of the equalizer adjustment on the financial situation of the company.
"The description referred to in the d also includes a statement indicating whether the volatility correction referred to in section R. 351-6 is used by the company concerned and a quantification of the effects of a cancellation of the volatility correction on the financial situation of the company.
"The description referred to in i of the e includes an analysis of any significant change in relation to the previous reporting period and an explanation of any significant difference observed in the financial statements in the value of the items considered, as well as a brief description of the transferability of the capital.
"When insurance or reinsurance companies apply a transitional measure to the curve of interest rates that are irrelevant to eligible insurance and reinsurance commitments, as referred to in section L. 351-4, they report in their report on solvency and the financial situation referred to in section L. 355-5, the application of this transitional measure, in accordance with section III (b) R. 351-16. They also quantify the impact on their financial situation of the decision not to apply this transitional measure.
"When insurance or reinsurance companies apply a transitional deduction to technical provisions as referred to in section L. 351-5, they report on the solvency and financial situation referred to in section L. 355-5, the application of this transitional deduction, in accordance with section R. 351-17, c. IV. They also quantify the impact on their financial situation of the decision not to apply this transitional deduction.
"The requirements for the content of the solvency and financial situation report, the transmission deadline and the transmission modalities are set out in sections 290 to 297,300,301 and 303 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"A Minister's order for the economy specifies the detailed information that companies must provide in the context of the solvency and financial situation report.
"Art. R. 355-8.-The publication of the required solvency capital referred to in section R. 355-7 shall, in a separate manner, indicate the amount calculated in accordance with the provisions of Chapter II of this Title, and the amount of any additional capital requirement imposed in accordance with section L. 352-3, or the effect of the specific parameters that the insurance or reinsurance undertaking is required to use under section 352-11. These indications are accompanied by an explanation of the reasons that led the Autorité to prudential control and resolution to impose such requirements and parameters.
"Art. R. 355-9.-The Supervisory and Resolution Authority may authorize insurance or reinsurance companies to not publish information in their report on creditworthiness and the financial situation referred to in Article L. 355-5, in the following two cases:
“(a) The publication of this information would give the competitors of the company concerned an undue advantage;
“(b) The undertaking is held incommunicado or confidential due to obligations to the undertaking in respect of insured persons, subscribers or beneficiaries of contracts, reassigned undertakings or any other relationship with counterparties. These obligations, however, could not have the sole purpose of subtracting the company from its obligation to publish the relevant information in its creditworthiness and financial situation report.
"The request for non-publication must be filed with the Autorité de contrôle prudentiel et de résolution at least five months before the end of the fiscal year on which the report on creditworthiness and the financial situation relates. In this case, the Authority shall decide before the end of the fiscal year concerned.
"On an exceptional basis, an application may be filed after the date referred to in the preceding paragraph and at least two months before the date of publication of the solvency and financial situation report. In order to be admissible, this request must justify the reasons why it could not be submitted before that date.
"In any event, the filing of such a request may not be invoked by the company in order not to publish the creditworthiness and financial situation report within the specified time limits.
"When the non-publication of information is authorized by the prudential and resolution control authority, the company in question indicates this in its report on its creditworthiness and financial situation and explains its reasons.
"The provisions of this Article shall not apply to the information referred to in e of Article R. 355-7.
"The conditions under which the authorization referred to in the first paragraph ceases to be valid are defined in Article 299 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 355-10.-Are at least considered major events, within the meaning of Article L. 355-5, the events having one of the following characteristics:
“(a) Where a deviation from the minimum required capital is observed and the prudential and resolution control authority considers that the undertaking will not be able to submit a realistic short-term financing plan referred to in Article L. 352-8 or that the Authority does not achieve this plan within one month of the date on which the difference was observed;
“(b) Where a significant deviation from the required solvency capital is observed and the prudential and resolution control authority does not obtain a realistic recovery plan referred to in Article L. 352-7 within two months of the date on which the gap was observed.
"With respect to the case referred to in a, the Autorité de contrôle prudentiel et de résolution requires the company concerned to publish without delay the amount of the deviation found, with an explanation of its origin and consequences, as well as any corrective action that would have been taken. If, despite the presentation of a short-term financing plan initially considered realistic by the prudential and resolution control authority, a deviation from the minimum required capital was not corrected three months after it was found, this gap is the subject of a publication at the expiry of this period, with an explanation of its origin and consequences as well as the corrective measures already taken and any further action taken.
"With respect to the case referred to in b, the Autorité de contrôle prudentiel et de résolution requires the company concerned to publish without delay the amount of the deviation found, with an explanation of its origin and consequences, as well as any corrective action that would have been taken. If, despite the presentation of a recovery plan initially considered realistic by the Autorité de contrôle prudentiel et de résolution, a significant deviation from the required solvency capital was not corrected six months after it was found, this deviation is the subject of a publication at the expiry of this period, with an explanation of its origin and consequences as well as the corrective measures taken and any new corrective action planned.
"Article 302 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 specifies the terms and conditions of publications involving companies in the cases provided for in this Article.
"Art. R. 355-11.-Insurance or reinsurance companies may decide to publish in the report referred to in Article L. 355-5 any information or explanations relating to their credit and financial situation other than those already required to be published under Articles L. 355-5, R. 355-7, R. 355-8, R. 355-9 and R. 355-10, under delegated conditions.
"Subsection 2
“Transitional provisions
"Art. R. 355-12.-Until January 1, 2020, insurance or reinsurance companies publish the annual information referred to in Article L. 355-5 according to the following schedule:
“(a) No later than 20 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2016 and January 1, 2017;
“(b) No later than 18 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2017 and January 1, 2018;
"(c) No later than 16 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2018 and June 29, 2019;
"(d) No later than 14 weeks after closing, for fiscal years between June 30, 2019 and January 1, 2020.
" Effective January 1, 2020, the deadlines for publication of the solvency and financial situation report are specified in Article 300 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
“Chapter VI
« Group-specific requirements
“Section 1
“General arrangements for the control of groups
"Art. R. 356-1.-I.-The composition of the College of Comptrollers referred to in Article L. 356-7-1 includes the Comptroller of the Group, the control authorities of all Member States in which the subsidiary insurance and reinsurance companies have their headquarters and the European Insurance and Professional Pension Authority in accordance with Article 21 of Regulation (EU) No 1094/2010 of 24 November 2010.
"The Prudential Control and Resolution Authority as a group controller may also allow the control authorities to participate in the controllers' colleges on which important branches and related companies depend, including third countries. However, this participation is limited only to the need for effective exchange of information.
"The proper functioning of the Comptroller's College may require certain activities to be carried out by a reduced number of supervisory authorities within it.
"II.-The Autorité de contrôle prudentiel et de résolution participates in the College of Controllers referred to in Article L. 356-7-1 for subsidiary insurance and reinsurance companies subject to its control.
"The Supervisory and Resolution Authority may also participate in the Comptroller College referred to in Article L. 356-7-1 when it controls an important branch or a related business. However, this participation is limited only to the need for effective exchange of information.
"III.-The modalities for the participation of the control authorities of major branches and related companies are specified in Article 354 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 356-2.-I.-The coordination agreements referred to in III of Article L. 356-7-1 specify the procedures applied by the control authorities concerned:
« 1° For decisions relating to applications for approval of internal models and to the level of additional capital requirements, in accordance with sections R. 356-20 to and R. 356-21;
« 2° For decisions regarding the designation of the group controller;
« 3° For information provided by the group controller when the group's required solvency capital is no longer reached or may not be reached within the next three months.
"Without prejudice to the rights and obligations conferred on the controller of the group and other supervisory authorities, the coordination agreements may entrust additional tasks to the controller of the group, other supervisory authorities or the European Insurance and Vocational Authority when the latter results in a more effective control of the group and that the control activities of the members of the Comptroller's College, with respect to their individual responsibility, are not hindered.
"The content of the coordination agreements is specified in Article 355 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"II.-In the event of a discrepancy of views regarding these coordination agreements, the Autorité de contrôle prudentiel et de résolution may refer to the European Insurance and Professional Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of 24 November 2010.
"When the Autorité de contrôle prudentiel et de résolution is a controller of the group, it stops its final decision in accordance with the decision of the European Insurance and Pension Authority. It transmits its decision to other relevant supervisory authorities.
"III.-The Autorité de contrôle prudentiel et de résolution en tant que controller du groupe transmis à l' Autorité européenne des assurances et des pensions professionnelles les informations pertinentes en vue de lui faire un examen approfondie du fonctionnement des collèges des contrôles et des difficultés qu'ils rencontre.
"Art. R. 356-3.-I.-In order to ensure that all concerned authorities have the same relevant information available, without prejudice to their respective responsibilities and regardless of whether or not they are established in the same Member State, the Autorité de contrôle prudentiel et de résolution exchange avec les autres autorités de contrôle concernés ces informations afin de permet et de faciliter l'exercice de leurs tasks de contrôle. To this end, the Autorité de contrôle prudentiel et de résolution shall promptly communicate any relevant information as soon as it becomes available or at the request of other authorities, including:
« 1° Information on the actions of the group and the supervisory authorities;
« 2° The information provided by the group;
« 3° The information provided by Article 357 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"II.-If a supervisory authority has failed to communicate to the Authority for prudential control and resolution of the relevant information, or if requests for cooperation submitted by the Authority, in particular for the exchange of relevant information, have been rejected or have not been followed by effect within two weeks, the Authority may refer to the European Insurance and Pension Authority.
"III.-The Autorité de contrôle prudentiel et de résolution en tant que controller de groupe transmis aux autorités de contrôle concernés et à l' Autorité européenne des assurances et des pensions professionnelles les informations concernant la structure juridique du groupe, son système de gouvernance et sa structure opérationnelles.
"IV.-The Autorité de contrôle prudentiel et de résolution convenes without delay a meeting of all relevant authorities, at least in the following cases:
« 1° When it is aware of the existence of a serious violation of the required solvency capital requirement or a violation of the minimum required capital requirement on the part of an insurance or reinsurance company;
« 2° When it finds a significant deviation from the solvency capital required at the group level, calculated on the basis of the consolidated data, or the solvency capital required of the group on an aggregate basis, according to the calculation method applied in accordance with R. 356-19 to R. 356-22;
« 3° Where any other exceptional circumstances occur or occur.
"Art. R. 356-4.-I.-Without prejudice to the provisions of Article L. 356-7, the Autorité de contrôle prudentiel et de résolution consults within the Comptroller's College, the supervisory authorities concerned on any important decision for the control tasks of these authorities, relative:
« 1° Amendments to the structure of the ownership, organization or management of insurance or reinsurance companies of a group, requiring the approval or authorization of the control authorities;
« 2° A decision on the extension of the recovery period referred to in Article L. 352-7;
« 3° The main sanctions and exceptional measures taken by the control authorities, including the application of an additional capital requirement in addition to the solvency capital required in accordance with Article L. 352-3 and the application of any limitation of the use of an internal model for the calculation of the solvency capital required in accordance with the provisions of Chapter II section I.
"In the case of consultations scheduled for 2° and 3°, the Autorité de contrôle prudentiel et de résolution, when it is not a group controller, always consults the group controller.
"The Authority also consults with the other authorities concerned before making any decisions based on information received from other supervisory authorities.
"II.-Without prejudice to the provisions of Article L. 356-7, the Autorité de contrôle prudentiel et de résolution may decide not to consult the other control authorities in the event of an emergency or where such consultation may compromise the effectiveness of its decisions. In such a case, it shall promptly inform the other authorities concerned.
"Art. R. 356-5.-When the Autorité de contrôle prudentiel et de résolution is a group controller pursuant to Article L. 356-6 without the parent company being located in France, it may invite the supervisory authority of the Member State where the parent company has its head office, to request the parent company all the information useful to the exercise of its rights and coordination obligations, as defined in the article 356-7.
"When the Authority for prudential control and resolution as a group controller needs the information referred to in I of Article L. 356-21, which has already been provided to another control authority, it addresses, to the extent possible, to the latter in order to avoid any duplication in the communication of information to the various authorities participating in the control.
"Art. R. 356-5-1.-When the Autorité de contrôle prudentiel et de résolution requests a competent authority of another Member State to proceed, pursuant to the first paragraph of Article L. 632-12 of the Monetary and Financial Code, to on-site controls of an insurance or reinsurance company or of a person connected to it under any of the terms provided for in Article L. 612-26 of the same code, or when the Authority meets the request of a competent authority of another Member State to carry out, pursuant to the third paragraph of Article L. 632-12 of the same code to controls on the place of an insurance company or
"Art. A. 356-5-2.-Where an application by the Autorité de contrôle prudentiel et de résolution to a competent authority of another Member State to proceed, pursuant to the first paragraph of Article L. 632-12 of the monetary code and to finance, on-site controls of an insurance or reinsurance company or of a person connected to it according to one of the terms provided for in Article L. 64/-26 of the same
“Section 2
"Specific arrangements for groups with a parent company with its head office outside the European Union
"Art. R. 356-6.-I.-The equivalence of group control exercised by a control authority of a third country to that referred to in Article L. 356-11 may be determined by a delegated act of the Commission taken under paragraphs 3 and 5 of Article 260 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 (solvability II).
"II.-When no delegated act has been adopted by the Commission, the Autorité de contrôle prudentiel et de résolution, if it was to be designated as a group controller pursuant to the criteria set out in I of Article L. 356-6, verifies, at the request of the parent company or one of the registered insurance or reinsurance subsidiaries in the European Union, or of its own initiative, third party if the control of the group is.
"To this end, the Autorité de contrôle prudentiel et de résolution, assisted by the European Insurance and Professional Pension Authority, consults the other supervisory authorities concerned before deciding on equivalence, in accordance with the criteria set out in Article 380 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014. This decision may not contradict a decision made earlier with respect to the third country concerned, unless it is necessary to take into account the significant changes made to the group control of the third country and to the one established by the provisions of subsection 1 of this section.
"The decision taken by the Autorité de contrôle prudentiel et de résolution under the previous paragraph may, within three months of its notification, in case of disagreement, be the subject of another supervisory authority of a referral from the European Insurance and Professional Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010.
"When the Autorité de contrôle prudentiel et de résolution disagrees with the decision taken by another supervisory authority on the equivalence of group control of a third country, it may, in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010, seize the European Insurance and Pensions Authority within three months of the notification of this decision.
"III.-The Autorité de contrôle prudentiel et de résolution may decide, in the absence of an equivalent control for the third country of the parent company, to conduct a new audit of the existence of a control equivalent to a lower level where a parent company exists in another third country, whether it is an insurance company, a joint financial company, an insurance company or a reinsurance company. In this case, the Autorité explains its decision to the group's insurance and reinsurance companies.
"Art. R. 356-7.-I.-For the purposes of section L. 356-12, insurance or reinsurance companies apply either the general principles and methods referred to in sections L. 356-6 to L. 356-10 and L. 356-15 to L. 356-24 at the level of the parent company of the third country under the terms set out in II, or one of the methods set out in III.
"II.-For the sole purpose of calculating the solvency of the group, the parent company of the third country is considered to be an insurance or reinsurance undertaking subject to the same conditions as those defined in section 3 of Chapter I of this title with respect to the equity eligible for the coverage of the solvency capital required, and one of the following requirements:
“(a) A credit capital required to be determined in accordance with the principles of section R. 356-16 if it is an insurance company or a joint holding financial company;
“(b) A credit capital required to be determined in accordance with the principles of section R. 356-23 if it is an insurance or reinsurance business of a third country.
"III.-On the authorization of the Authority for prudential control and resolution and, where applicable, upon request, insurance or reinsurance companies may apply other methods guaranteeing appropriate control at the group level. These methods are approved by the group controller if this function is performed by another control authority.
"If the Prudential Control and Resolution Authority as a group controller is seized by another control authority wishing to apply other methods that guarantee the appropriate control of insurance and reinsurance companies owned by a group, it approves or not these methods, after consultation with the other control authorities concerned.
"The methods chosen are communicated to the other control authorities concerned and to the Commission.
“Section 3
“Requirement of regulatory capital of groups
"Art. R. 356-8.-Sections R. 356-9 to R. 356-22 apply to participating companies and mothers, respectively referred to in the second and third paragraphs of section L. 356-2.
"For the purposes of the credit calculation referred to in the first paragraph of Article R. 356-10, the parent enterprise referred to in the third paragraph of Article L. 356-2 shall be treated as an insurance or reinsurance company subject to the rules set out in chapter I, section 3, and chapter II, section 1, of this title and sections L. 352-1 to L. 352-1-3 and R. 352-2 to R. 352-24
"Art. R. 356-9.-The Prudential Control and Resolution Authority as a group controller shall ensure that the calculations to verify compliance with the requirements mentioned in 2° and 3° of Article L. 356-15, are carried out at least once a year by the company mentioned in the first paragraph of Article R. 356-8. The data necessary for these calculations and the results obtained are provided to the Authority by this company.
"The company referred to in the first paragraph of section R. 356-8 shall continuously monitor the amount of the solvency capital required of the group. When the group's risk profile significantly deviates from the assumptions underlying the last solvency capital required transmitted by the group, this capital is recalculated without delay and notified to the prudential and resolution control authority as a group controller.
"When elements appear to indicate that the group's risk profile has changed significantly since the date of the last transmission of the group's required solvency capital, the Group's prudential and resolution control authority as a group controller may require that this capital be recalculated.
"Art. R. 356-10.-The calculation of solvency at the level of the group of insurance and reinsurance companies is carried out according to the first method mentioned in section R. 356-19, based on consolidated data.
"However, the Autorité de contrôle prudentiel et de résolution as controller of the group may decide, after consultation with the other control authorities concerned and the group itself, to apply to that group the second method referred to in article R. 356-22, based on deduction and aggregation, or a combination of the first and second methods, if the exclusive application of the first method is inappropriate.
"The choice of method is based on the criteria set out in Article 328 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Specific plans are provided in section 329 of the Regulations for the calculation of solvency at the level of the group of certain related companies.
"Art. R. 356-11.-I.-The calculation of solvency of the group takes into account the proportional share held by the company referred to in the first paragraph of Article R. 356-8 in its related companies.
"This proportional share corresponds:
“(a) When the first method is used, the percentages retained for the preparation of consolidated accounts; or
“(b) When the second method is used, to the fraction of the capital that is owned, directly or indirectly, by the enterprise referred to in the first paragraph of Article R. 356-8.
"However, regardless of the method used, when the related company is a subsidiary company that does not have sufficient eligible equity to cover its required solvency capital, the total solvency deficit of the subsidiary is taken into account.
"When, in the opinion of the supervisory authorities, the liability of the enterprise referred to in the first paragraph of Article R. 356-8 holding a share of capital is strictly limited to that share of capital, the Autorité de contrôle prudentiel et de résolution as controller of the group may nevertheless allow it to be taken into account the solvency deficit of the subsidiary on a proportional basis.
"II.-The Autorité de contrôle prudentiel et de résolution as controller of the group determines, after consultation with the other authorities concerned and the group itself, the proportional share that is taken into consideration in the following cases:
“(a) When there is no capital link between some of the companies belonging to a group;
“(b) When a supervisory authority has established that holding, directly or indirectly, voting or capital rights in a business is assimilable to participation as it considers that a significant influence is actually exercised on that business;
"(c) When a supervisory authority has established that a company is the parent company of another company, as it considers that the first company actually exerts a dominant influence on the second.
"Art. R. 356-12.-I.-The dual use of eligible equity in the coverage of the solvency capital required of the various insurance or reinsurance companies taken into account in the calculation is prohibited.
"For this purpose, when calculating the solvency of the group, if the methods described in sections R. 356-19 to R. 356-22 do not provide, the following amounts are excluded:
“(a) The value of any assets of the enterprise referred to in the first paragraph of section R. 356-8 that corresponds to the financing of eligible equity covering the required solvency capital of one of its related insurance or reinsurance companies;
“(b) The value of any assets of an insurance or reinsurance company related to the enterprise referred to in the first paragraph of section R. 356-8 that corresponds to the financing of eligible equity covering the solvency capital required of the enterprise;
"(c) The value of any assets of an insurance or reinsurance company related to the enterprise referred to in the first paragraph of section R. 356-8 that corresponds to the financing of eligible equity covering the required solvency capital of any other insurance or reinsurance enterprise referred to in the first paragraph of section R. 356-8.
"II.-Without prejudice to I, the following elements may only be taken into account in the calculation to the extent that they are eligible to cover the required solvency capital of the related company concerned:
“(a) The excess funds under the second paragraph of section R. 351-21, a life insurance or related reinsurance company referred to in the first paragraph of section R. 356-8 for which the solvency of the group is calculated;
“(b) The portions subscribed but not paid from the capital of an insurance or reinsurance company related to the enterprise referred to in the first paragraph of section R. 356-8 for which the solvency of the group is calculated.
"However, the following elements shall in all cases be excluded from the calculation:
“(i) The portions of the capital that are subscribed but unpaid that represent a potential obligation to the enterprise referred to in the first paragraph of Article R. 356-8;
“ii) The shares that are subscribed but not paid from the capital of the enterprise referred to in the first paragraph of section R. 356-8, which represent a potential obligation to a related insurance or reinsurance undertaking;
“(iii) The portions that are subscribed but not paid from the capital of a related insurance or reinsurance undertaking that represent a potential obligation to another related insurance or reinsurance undertaking of the same undertaking referred to in the first paragraph of section R. 356-8.
"III.-When the supervisory authorities consider that certain eligible equity funds to cover the required solvency capital of a related insurance or reinsurance company, other than those mentioned in the II, cannot be effectively made available to cover the required solvency capital of the participating insurance or reinsurance company for which the solvency of the group is calculated, these own funds may only be included in the calculation where
"IV.-The sum of the equity referred to in II and III cannot exceed the solvency capital required of the related insurance or reinsurance company.
"V.-Eligible equity of an enterprise of related insurance or reinsurance referred to in the first paragraph of section R. 356-8 for which the solvency of the group is calculated, when subjected to the prior approval of the control authority of the undertaking related in accordance with section R. 351-20, may be included in the calculation only to the extent that it has been duly approved by that authority.
"The conditions for the availability at the level of the group of eligible funds of related companies are defined in Article 330 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 356-13. -In calculating the solvency of the group, there is no consideration of any element of eligible equity in respect of the required solvency capital that would arise from reciprocal financing between the enterprise referred to in the first paragraph of section R. 356-8 and:
“(a) A related company;
“(b) A participating company;
"(c) Another company related to any of its participating companies.
"In calculating the solvency of the group, no element of equity eligible for the coverage of the solvency capital required of an insurance or reinsurance company related to the enterprise referred to in the first paragraph of section R. 356-8 for which the solvency of the group is calculated when the element in question comes from reciprocal financing with another company related to that undertaking.
"Reciprocal financing is deemed to exist at least when an insurance or reinsurance company, or any of its related businesses, holds shares in another business that, directly or indirectly, holds eligible equity in the first business's required credit capital, or when it grants loans to that other business.
"Art. R. 356-14.-The assets and liabilities are assessed in accordance with section L. 351-1.
"The modalities for calculating the best estimate of prudential technical provisions referred to in Article L. 351-2, based on consolidated data, are set out in Article 339 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"At the group level, the calculation of the margin of risk is carried out in accordance with section 340 of the Regulations.
"Art. R. 356-15.-When the company referred to in the first paragraph of section R. 356-8 has several related insurance or reinsurance companies, each of them is taken into account in calculating the solvency of the group.
"When the related insurance or reinsurance company has its head office in another Member State, the calculation shall take into account, with respect to this related undertaking, the required solvency capital and eligible equity funds to cover it, as defined in that other Member State.
"Art. R. 356-16.-I.-For the calculation of the solvency of the group of a company referred to in the first paragraph of Article R. 356-8 that holds, through a company of insurance group, a mutual union of group, a company of insurance social protection group or a joint financial company, an interest in a reinsurance or reinsurance company
"For the sole purpose of this calculation, the intermediate insurance company, the intermediary group unionist, the intermediate social insurance company or the intermediate joint holding company shall be treated as an insurance or reinsurance company subject to the rules set out in section 1 of Chapter II of this title with respect to the solvency capital required, and to the same conditions as those set out in section 3 of Chapter I of this title
"II.-In cases where an intermediate insurance group corporation, a group mutualist union, a social insurance group corporation or an intermediate holding financial company holds subordinated receivables or other eligible equity funds subject to the limits provided for in section R. 351-26, they are considered to be equity eligible to the amounts resulting from the application of the limits set out in the same section to the total stock
"The eligible equity of an intermediate insurance company, an intermediary group mutualist union, an intermediate social protection group corporation or an intermediate joint holding financial company that would require the prior approval of a control authority in accordance with section R. 351-20, if held by an insurance or reinsurance company, shall only be taken into account in the determination of the approval of
"Art. R. 356-17.-For the calculation of the solvency of the group of a company referred to in the first paragraph of section R. 356-8 which is a participating company of a credit institution, an investment company or a financial institution, this company applies one of the two methods defined by decree of the Minister responsible for the economy. The chosen method is applied consistently in time.
"The Autorité de contrôle prudentiel et de résolution as controller of the group may, however, decide, for a particular group, at the request of the company referred to in section R. 356-8 or of its own initiative, to deduct any participation of a company mentioned in the first paragraph of the eligible funds on the solvency of the group.
"Art. R. 356-18.-When the Authority of prudential control and resolution as a group controller does not have the information necessary to calculate the solvency of the group of a company referred to in the first paragraph of Article R. 356-8 in respect of a related company having its head office in a Member State or in a third country, the carrying value of that enterprise in the enterprise referred to in the first paragraph of the article Rligible
"In this case, no latent surplus value associated with this participation is considered to be an element of the equity eligible for the group's credit coverage.
"Art. R. 356-19.-I.-The calculation of the solvency of the company group referred to in the first paragraph of Article R. 356-8 is carried out on the basis of the consolidated data.
"The solvency of the group is equal to the difference between eligible equity funds on the required solvency capital, calculated on the consolidated database and the solvency capital required at the group level, calculated on the consolidated database.
"The rules set out in section 3 of Chapter I and section 1 of Chapter II of this Title apply to the calculation of eligible equity in respect of the required solvency capital and the solvency capital required at the group level on the basis of consolidated data.
"The classification at the level of the group of equity elements of the related companies is carried out in accordance with the terms set out in Article 331 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"When an element of equity comes from a third-country business, the participating company classifies the equity element according to the criteria set out in section 332 of the Regulations.
"When an element of equity originates from an insurance company, a group mutualist union, a social welfare insurance company, an intermediate insurance company, an intermediary group union, an intermediary group union, an intermediary social insurance company or a subsidiary of an auxiliary service company, the participating company classifies the element of equity according to its own criteria.33
"The classification of the elements of the equity of the enterprises that are subject to unregulated financial activities and related businesses is established in accordance with section 334 of the Regulations.
"The consolidated data to be taken into account in calculating the solvency of the group shall be determined by section 335 of the Regulations.
"II.-The solvency capital required at the group level on the consolidated database is calculated according to the standard formula or according to an approved internal model, in accordance with the general principles set out in Articles L. 352-1, R. 352-2 to R. 352-12-1 for the standard formula, and sections L. 352-1, R. 352-2 to R. 352-3 and R. 352-13 to R. 352-25
"The solvency capital required of the group on a consolidated basis is at least equal to the sum of the minimum capital required, referred to in section R. 352-29, of the participating insurance or reinsurance undertaking in the case referred to in the second paragraph of section L. 356-15 and the proportional share of the minimum capital required of the related insurance and reinsurance companies.
"This minimum is covered by eligible base funds set out in Article R. 351-26 IV.
"In order to determine whether these eligible equity funds provide coverage of the minimum solvency capital required of the group on a consolidated basis, the principles set out in sections R. 356-11 to R. 356-18 apply.
"In the event of the non-covery of this minimum of solvency capital required of the group on a consolidated basis, the company referred to in the first paragraph of Article R. 356-8 and the Authority for prudential and resolution control as a group controller shall apply the provisions of the first two paragraphs of Article L. 352-8.
"The solvency capital required at the group level on the consolidated database is calculated according to the terms set out in Article 336 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014. The risk of exchange is taken into account as provided for in section 337 of the same delegated regulation.
"When a combination of the first method and the second method is decided by the group controller under section R. 356-10, section 341 of the Regulations applies.
"When the calculation of the solvency capital required at the group level on the consolidated database is an internal model, the procedure and the applicable criteria are explained in sections 343 to 346 of the Regulations.
"In accordance with the standard formula and subject to the agreement of the Authority for prudential control and resolution as a group controller as provided for in Article 356 of the Regulations, the solvency capital required at the group level may be calculated on the basis of parameters specific to the group concerned in accordance with Article 338 of this Regulation.
"The application of an internal model for the calculation of the solvency capital required at the group level on the consolidated database is subject to the prior procedure provided for in section 343 of the Regulations.
"The withdrawal of the application is subject to the information of the group controller and the controller college in accordance with section 343 of the Regulations.
"The review of the application is conducted in accordance with sections 344 and 345 of the Regulations.
"Art. R. 356-20.-I.-The companies referred to in the first paragraph of Article R. 356-8 may apply for the group and related companies concerned with the Autorité de contrôle prudentiel et de résolution as a group controller the authorization to calculate, on the basis of an internal model, the solvency capital required of the group on a consolidated basis and the solvency capital required of insurance companies of the group. The Autorité de contrôle prudentiel et de résolution informs the other members of the College of Controllers and communicates the complete request without delay.
"The prudential control authority shall cooperate with the control authorities concerned to decide whether or not to grant such authorization and, if necessary, to define the conditions. It endeavours to reach a joint decision with the relevant supervisory authorities within six months of receipt of the full application.
"When the Autorité de contrôle prudentiel et de résolution and the other control authorities concerned have reached this joint decision, the Autorité notifies this decision motivated to the company mentioned in the first paragraph of Article R. 356-8 and to the insurance and reinsurance companies concerned having their headquarters in France.
"II.-The Autorité de contrôle prudentiel et de résolution en tant que controller de groupe diffère sa décision si, au cours de la période de six mois précitée au I, elle ou une autre autorités de contrôle concernées saisit l' Autorité européenne des assurances et des pensions professionnelles en application de l'article 19 du règlement (UE) n° 1094/2010 du Parlement européen et du Conseil du 24 novembre 2010. The final decision taken by the European Insurance and Vocational Pension Authority is required by the Autorité de contrôle prudentiel et de résolution, which notify the company mentioned in the first paragraph of Article R. 356-8 and the insurance and reinsurance companies concerned with their headquarters in France and applies it.
"If the European Insurance and Professional Pension Authority does not make a decision because of the rejection by the supervisory authorities of the decision proposed by the expert group pursuant to Article 44, paragraph 1, third paragraph, of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010, the Autorité de contrôle prudentiel et de résolution as a group controller makes a final decision. It shall notify the company referred to in the first paragraph of Article R. 356-8 and the insurance and reinsurance companies concerned with their headquarters in France, and transmit a copy thereof to the other authorities concerned.
"III.-A lack of a joint decision of the Autorité de contrôle prudentiel et de résolution as a group controller and other control authorities concerned during the six-month period mentioned in I, the Autorité de contrôle prudentiel et de résolution itself decides on the request. It takes due account of the opinion and reservations expressed by the relevant supervisory authorities. It shall notify the company referred to in the first paragraph of Article R. 356-8 and the insurance and reinsurance companies concerned having their headquarters in France of the reasoned decision and transmit a copy thereof to the other control authorities concerned.
"Art. R. 356-20-1.-I.-When the Autorité de contrôle prudentiel et de résolution is informed by the group controller when it is a control authority of another Member State of a request for authorization to calculate, on the basis of an internal model, the required solvency capital of the group on a consolidated basis and the required solvency capital of insurance companies It endeavours to reach a joint decision with the group controller and other relevant supervisory authorities within six months of receipt of the full application.
"When the Autorité de contrôle prudentiel et de résolution and the other control authorities concerned have reached this joint decision, the Autorité notifies this decision motivated to the insurance and reinsurance companies concerned having their headquarters in France.
"II.- During the six-month period referred to in the first paragraph of this article, the Autorité de contrôle prudentiel et de résolution may refer to the European Insurance and Pension Authority pursuant to Article 19 of the Regulation (EU) No 1094/2010 of the European Parliament and the Council of 24 November 2010, The final decision taken by the European Insurance and Pension Authority or by the group controller in case of rejection by the Council
"III.-In the absence of a joint decision by the supervisory authorities, the decision by the group controller is required by the Autorité de contrôle prudentiel et de résolution, which notifies the company referred to in R. 356-8 and the insurance and reinsurance companies concerned with their head office in France and applies it.
"Art. R. 356-20-2.-When the Autorité de contrôle prudentiel et de résolution considers that the risk profile of an insurance or reinsurance company subject to its control significantly deviates from the assumptions that underlie the internal model approved at the level of the group, it may impose on that undertaking, in accordance with Article L. 352-3 and as long as the company does not meet the requirements of
"In exceptional circumstances, where this additional capital requirement would be inappropriate, the Authority may require the company concerned to calculate its solvency capital required on the basis of the standard formula referred to in section L. 352-1. In accordance with 1° and 3° of Article L. 352-3, the Autorité de contrôle prudentiel et de résolution may impose an additional capital requirement in addition to the required solvency capital of this insurance or reinsurance undertaking resulting from the application of the standard formula.
"The Autorité de contrôle prudentiel et de résolution transmits its decision to the other members of the College of Controllers.
"Art. R. 356-20-3.-The terms of the application for authorization and review by the controller of the group referred to in sections R. 356-20 and R. 356-20-1 are specified in sections 347.348 and 349 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"In order to be able to use an internal model in accordance with sections R. 356-20 and R. 356-20-1, the companies of the group must meet the criteria set out in Article 350 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 356-21.-To determine whether the solvency capital required of the group calculated on the basis of the consolidated data in accordance with Article R. 356-19, adequately reflects the group's risk profile, the Prudential Control and Resolution Authority as a group controller, pays particular attention to all cases where the circumstances referred to in Article L. 352-3 are likely to arise at the level of the group and
“(a) A specific risk existing at the group level would not be, because it is difficult to quantify, taken into account by the standard formula or the internal model used;
“(b) An additional capital requirement in addition to their required credit capital is imposed on European insurance or reinsurance companies related by the relevant control authorities, in accordance with the criteria referred to in Article L. 352-3 and Article R. 356-20-2.
"To determine whether the solvency capital required of the group calculated on an aggregate basis in accordance with Article R. 356-22 adequately reflects the group's risk profile, the Autorité de contrôle prudentiel et de résolution, after the opinion of the control authorities concerned, pays particular attention to the specific risks existing at the group level that, because they are difficultly quantifiable, would not be sufficiently taken into account.
"The modalities for determining the additional capital requirement at the group level are specified in sections 276 to 287 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 356-22.-I.-The solvency of the enterprise group referred to in the first paragraph of section R. 356-8 calculated on the deduction and aggregation method is equal to the difference between:
“(a) The eligible funds of the group on an aggregate basis, as defined in the II of this article;
“(b) And the sum of the value of insurance or reinsurance companies related to the enterprise referred to in the first paragraph of Article R. 356-8 and the solvency capital required of the group on an aggregate basis as defined in Article III.
"II.-The group's own eligible funds on an aggregate basis correspond to the sum:
“(a) Separate funds eligible to cover the required solvency capital of the company referred to in the first paragraph of section R. 356-8; and
“(b) On the proportional part of this undertaking in the equity eligible for the coverage of the solvency capital required of related insurance or reinsurance companies.
"III.-The solvency capital required of the group on an aggregate basis corresponds to the sum:
“(a) The required solvency capital of the company referred to in the first paragraph of Article R. 356-8; and
“(b) Proportional share of the solvency capital required of related insurance or reinsurance companies.
"IV.-Where the interest in the related insurance or reinsurance companies corresponds, in whole or in part, to an indirect property, the value in the enterprise referred to in the first paragraph of section R. 356-8 of the related insurance or reinsurance companies incorporates the value of this indirect property, taking into account the relevant successive interests, and the elements referred to in b. II, and b. III, shall include the corresponding proportional shares
"V.-In the event that a business referred to in the first paragraph of section R. 356-8 and its related companies require authorization to calculate their credit capital required on the basis of an internal model, sections R. 356-20 to R. 356-20-3 apply.
"VI.-For the calculation, pursuant to this section, of the solvency of the group of a business referred to in the first paragraph of section R. 356-8, which is a participating company of an insurance or reinsurance enterprise of a third country, the company is considered, for the sole purpose of this calculation, as a related insurance or reinsurance company.
"Art. R. 356-23.-I.-Where the third country in which an insurance or reinsurance company of third countries referred to in Article VI R. 356-22 has its head office shall submit it to a credit plan and impose a credit plan at least equivalent to that established by chapters I, II and III of this title, the calculation of the solvency of the group shall take into account,
"II.-The equivalence of the solvency regime of the third country to that established by chapters I, II and III of this title may be determined by a delegated act of the Commission taken under paragraphs 4 and 5 of Article 227 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 (solvency II).
"If no delegated act has been adopted, the Autorité de contrôle prudentiel et de résolution as controller of the group shall verify, at the request of the undertaking referred to in the first paragraph of Article R. 356-8, or on its own initiative, whether the regime of the third country is at least equivalent. To do so, the Autorité de contrôle prudentiel et de résolution, assisted by the European Insurance and Vocational Authority, consults the other supervisory authorities concerned before deciding on equivalence in accordance with Article 379 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014. This decision may not contradict a decision made earlier with respect to the third country concerned, unless it is necessary to take into account the significant changes made to the solvency regime of the third country and to that established by the articles of chapters I, II and III of this title.
"The decision taken by the Autorité de contrôle prudentiel et de résolution under the previous paragraph may, within three months of its notification, in case of disagreement, be the subject of another supervisory authority of a referral from the European Insurance and Professional Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010.
"When the Autorité de contrôle prudentiel et de résolution disagrees with the decision taken by another control authority as a group controller on the equivalence of the solvency regime of a third country, it may, in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010, refer the European Insurance and Pensions Authority within three months of this decision.
"Art. R. 356-24.-I.-The rules set out in sections R. 356-26 and R. 356-27 apply, under the terms set out in section R. 356-25, to any insurance or reinsurance company having its head office in France that is the subsidiary of a company referred to in the first paragraph of section R. 356-8, where all the following conditions are met:
“(a) The subsidiary is included in the control of the group and the Autorité de contrôle prudentiel et de résolution, as a group controller, has not taken the decision referred to in Article L. 356-2 in its regard;
“(b) The risk management procedures and the internal control mechanisms of the company referred to in the first paragraph of section R. 356-8 cover the subsidiary and the Supervisory and Resolution Authority considers that the prudent management of this subsidiary by the company referred to in the first paragraph of section R. 356-8 is satisfactory;
"(c) The undertaking referred to in the first paragraph of Article R. 356-8 received the agreement referred to in Article L. 356-19;
"(d) The undertaking referred to in the first paragraph of Article R. 356-8 received the agreement referred to in Article L. 356-25;
“e) The undertaking referred to in the first paragraph of section R. 356-8 requested that its subsidiary be subject to sections R. 356-26 and R. 356-27, and its application was the subject of a favourable decision made in accordance with the procedure provided for in section R. 356-25.
"II.-The rules set out in sections R. 356-26 and R. 356-27 apply, in accordance with the terms set out in section R. 356-25, to any insurance and reinsurance company with its head office in France that is the subsidiary of a participating company with its head office in another Member State, where all the following conditions are met:
“(a) The subsidiary is included in the control of the group and the control authority of the Member State in which the participating company is established, as a group controller, has not made a decision similar to that referred to in Article L. 356-2;
“(b) The risk management procedures and the internal control mechanisms of the participating company cover the subsidiary and the prudential and resolution control authority and the group controller consider that the prudent management of the subsidiary by the participating company is satisfactory;
"(c) The participating company received from the group controller an agreement similar to that referred to in Article L. 356-19;
"(d) The participating company received from the group controller an agreement similar to that referred to in Article L. 356-25;
“e) The participating company requested from the group controller that the subsidiary be subject to rules similar to those referred to in sections R. 356-26 and R. 356-27 and its application was the subject of a favourable decision.
"III.-When the Autorité de contrôle prudentiel et de résolution decides to apply to the upper parent company in France the provisions of section 3 of this chapter in accordance with section L. 356-4, this undertaking is not authorized to apply for authorization to subject any of its subsidiaries to sections R. 356-26 and R. 356-27.
"The Autorité de contrôle prudentiel et de résolution cannot take or maintain the decision referred to in Article I of Article L. 356-4, when the superior parent company in France is a subsidiary of a superior parent company in the Union that has obtained the authorization to subject this subsidiary to Articles R. 356-26 and R. 356-27.
"IV.-The conditions mentioned in I and II are specified by Article 351 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 356-25.-I.-The undertaking referred to in Article R. 356-8 or the participating undertaking referred to in Article II R. 356-24 shall address to the Autorité de contrôle prudentiel et de résolution, on behalf of the undertaking of insurance or subsidiary reinsurance having its head office in France referred to in Article R. 356-24, the application for authorization to sub-rule 356-26
"The Autorité de contrôle prudentiel et de résolution informs the other supervisory authorities members of the College of Controllers and communicates the complete request without delay.
"II.-In the case referred to in I of Article R. 356-24, the Autorité de contrôle prudentiel et de résolution shall, within a period of three months following the submission of the full application to the College of Comptrollers, at the request for authorization sought and, where applicable, shall determine the conditions.
"In the case referred to in Article R. 356-24, the Autorité de contrôle prudentiel et de résolution cooperates closely with the group controller in order to decide whether or not to grant the requested authorization and, where applicable, to define the conditions. It endeavours to reach a joint decision with the Comptroller of the Group on this application within three months of the full application being communicated to the Comptroller's College. This joint decision is required by the Autorité de contrôle prudentiel et de résolution.
"When the Prudential Control and Resolution Authority and, where appropriate, the group controller adopted the decision referred to in the previous paragraph, it shall notify the applicant company of this decision.
"III.-In the case referred to in II of Article R. 356-24 and during the three-month period referred to in the second paragraph of this Article, the Autorité de contrôle prudentiel et de résolution may refer to the European Insurance and Vocational Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010. The final decision taken by the European Insurance and Vocational Pension Authority or by the group controller in the event of the rejection by the supervisory authorities of the decision proposed by the expert group of the European Insurance and Vocational Pension Authority pursuant to Article 44 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 is required by the Autorité de contrôle prudentiel et de résolution. The applicant shall notify the applicant company and apply it.
"IV.-In the case referred to in II of Article R. 356-24 and in the absence of a joint decision of the Autorité de contrôle prudentiel et de résolution and of the group controller during the three-month period referred to in the first paragraph of II, the decision taken by the group controller is required to the Autorité de contrôle prudentiel et de résolution. The applicant shall notify the applicant company and apply it.
"Art. R. 356-25-1.-I.-When the Authority for prudential control and resolution as a group controller is informed by a supervisory authority of another Member State of a request to subject a subsidiary having its head office in that Member State, the rules set out in Articles R. 356-26 and R. 356-27, it agrees with that control authority in order to decide whether or not to It endeavours to reach a joint decision on the application with the supervisory authority concerned within three months of the full application being communicated to the controller college.
"This joint decision is binding on the Autorité de contrôle prudentiel et de résolution.
"II.-The Autorité de contrôle prudentiel et de résolution as controller de groupe diffère sa décision si, au cours de la période de trois mois précitée au I, elle ou l'autre autorités de contrôle concernés se saisit l' Autorité européenne des assurances et des pensions professionnelles conformément à l'article 19 du règlement (UE) n° 1094/2010 du Parlement européen et du Conseil du 24 novembre 2010. The final decision taken by the European Insurance and Vocational Pension Authority is binding on the Autorité de contrôle prudentiel et de résolution. In the event of a rejection by the supervisory authorities of the decision proposed by the expert group of the European Insurance and Professional Pension Authority pursuant to Article 44 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010, the Autorité de contrôle prudentiel et de résolution takes a final decision.
"III.-A lack of a joint decision of the Autorité de contrôle prudentiel et de résolution as a group controller and the other control authority concerned during the three-month period mentioned in I, the Autorité de contrôle prudentiel et de résolution itself decides on the application, taking duly into account during this period the notice and reservations expressed by the supervisory authority concerned and the reservations expressed by the other supervisory authorities.
"The Autorité explains, in its decision, any significant discrepancy with respect to the reservations expressed by the control authority concerned. It transmits a copy of this decision to the subsidiary and the other control authority concerned.
"Art. R. 356-25-2.-When the Autorité de contrôle prudentiel et de résolution is not a group controller and when it and informed by a control authority concerned of another Member State of a request to subject a subsidiary having its head office in that Member State to the rules set out in Articles R. 356-26 and R. 356-27, it may issue reservations to the joint controller,
"Art. R. 356-26.-I.-Without prejudice to sections R. 356-20 to R. 356-20-3, the required solvency capital of a subsidiary referred to in R. 356-24 is calculated in accordance with the provisions of this section.
"II.-When the required solvency capital of a subsidiary referred to in section R. 356-24 is calculated on the basis of an internal model approved at the level of the group and that the Autorité de contrôle prudentiel et de résolution considers that the risk profile of the subsidiary is significantly excluded from this model, it may, in accordance with the provisions mentioned in sections L. 352-3 and R. 352-26 and as long as
"The Autorité de contrôle prudentiel et de résolution discusses its proposal within the Comptroller's College and communicates its reasons to the Comptroller's subsidiary and College.
"III.-When the required solvency capital of the subsidiary referred to in Article R. 356-24 is calculated on the basis of the standard formula and that the Autorité de contrôle prudentiel et de résolution considers that the risk profile of this affiliate significantly departs from the assumptions that underlie this formula, it may, in exceptional circumstances and as long as that subsidiary does not satisfy the requirements of the Autorité
"The Autorité de contrôle prudentiel et de résolution discusses its proposal within the Comptroller's College and communicates its reasons to that College.
"IV.-The Autorité de contrôle prudentiel et de résolution endeavours to reach a decision with the other supervisory authorities of the College of Controllers on its proposals referred to in II or III or on other possible measures. This decision is binding on the Authority to notify the subsidiary concerned.
"V.-When the Autorité de contrôle prudentiel et de résolution disagrees with the proposal of decision of the controller of the group, it may, within one month of this proposal, refer to the European Insurance and Professional Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010.
"The Autorité de contrôle prudentiel et de résolution differs its decision pending a possible decision of the European Insurance and Professional Pension Authority. If this authority has pronounced itself, the Autorité de contrôle prudentiel et de résolution stops its decision in accordance with that of the European Insurance and Pension Authority.
"The Autorité de contrôle prudentiel et de résolution notifies its decision to the subsidiary and transmits it to the college of controllers.
"Art. R. 356-26-1.-When a supervisory authority of another Member State transmits to the Autorité de contrôle prudentiel et de résolution a proposal similar to those mentioned in the II or III of Article R. 356-26 with respect to a subsidiary with its head office in that Member State, the Autorité de contrôle prudentiel et de résolution endeavours to reach a decision with the other supervisory authorities of the College of the controllers on this matter. This decision is required by the Autorité de contrôle prudentiel et de résolution.
"When the Autorité de contrôle prudentiel et de résolution, as a group controller, disagrees with the supervisory authority of another Member State with respect to a proposal similar to those mentioned in the II or III of Article R. 356-26 with respect to a subsidiary with its head office in that Member State, it may, within a period of one month from the date of the transmission of this proposal, seize the European Union's professional regulation in accordance with the European
"The decision taken in accordance with that of the European Insurance and Vocational Pension Authority is binding on the Autorité de contrôle prudentiel et de résolution.
"Art. R. 356-27.-I.-In the event of non-compliance with the required solvency capital of a subsidiary referred to in section R. 356-24 and without prejudice to the provisions of section L. 352-7, the Autorité de contrôle prudentiel et de résolution shall forthwith communicate to the Comptroller's College the recovery plan referred to in the second paragraph of section L. 352-7 submitted by that subsidiary.
"The Authority shall endeavour to reach a decision with the supervisory authorities in the Comptroller's College on its proposal for approval of the recovery plan, within four months of the first finding of non-compliance with the solvency capital required.
"In the absence of such a decision, the Authority shall decide on the recovery plan with due regard to the opinion and reservations expressed by the other supervisory authorities within the Comptroller's College.
"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, pursuant to Article L. 352-6, it shall promptly notify the College of Controllers of the measures it proposes to take. Except in cases of emergency situations referred to in Article 353 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, it discusses the measures to be taken within the Comptroller's College.
"The Authority shall endeavour, within one month of notification of the measures mentioned in the preceding paragraph, to reach a decision with the supervisory authorities within the Comptroller's College on these measures.
"In the absence of 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 Comptroller's College.
"III.-In the event of failure to cover the minimum required capital of a subsidiary referred to in section R. 356-24 and without prejudice to section L. 352-8 and R. 352-30, the Autorité de contrôle prudentiel et de résolution shall forthwith communicate to the College of Controllers the short-term financing plan referred to in the second paragraph of L. 352-8 submitted by the subsidiary. It informs the supervisory authorities within the Comptroller College of any measures taken to enforce the minimum capital required at the subsidiary level.
"IV.-The Autorité de contrôle prudentiel et de résolution may refer to the European Insurance and Pension Authority in accordance with Article 19 of Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 when it disagrees with the group controller on one of the following points:
“(a) Approval of recovery plan or extension of recovery period;
“(b) Approval of proposed measures pursuant to II.
"The Autorité de contrôle prudentiel et de résolution cannot seize the European Insurance and Pension Authority when:
“(a) The four-month period referred to in I or a month referred to in II expired;
“(b) The Comptroller College agreed on the decisions referred to in I or II;
"(c) In the presence of an emergency situation as mentioned in II.
"The Autorité de contrôle prudentiel et de résolution differs its decision pending a possible decision of the European Insurance and Professional Pension Authority. Its decision is consistent with that of the European Insurance and Pension Authority.
"The Autorité de contrôle prudentiel et de résolution notifies the decision to the subsidiary and transmits it to the supervisory authorities within the controller college.
"Art. R. 356-27-1.-I.-When a control authority concerned of another Member State communicates to the Authority of prudential control and resolution a recovery plan of a subsidiary having its head office in that Member State in the conditions similar to those mentioned in the I of Article R. 356-27, the Autorité de contrôle prudentiel et de résolution endeavours to arrive at a decision with the supervisory authorities of approval in the first month
"II.-When a relevant supervisory authority of another Member State notify the Autorité de contrôle prudentiel et de résolution of a deterioration of the financial situation of a subsidiary having its head office in that Member State under the conditions similar to those mentioned in the II of Article R. 356-27, and in the absence of an emergency situation, the Autorité de contrôle prudentiel et de résolution endeavours to arrive within a period of one month
"III.-The Autorité de contrôle prudentiel et de résolution en tant que controller de groupe peut saisi l' Autorité européenne des assurances et des pensions professionnelles conformément à l'article 19 du règlement (UE) n° 1094/2010 du Parlement européen et du Conseil du 24 novembre 2010 quand qu'elle est en disagree avec l' autorités de contrôle concernés sur l'un des points suivants :
“(a) Approval of recovery plan or extension of recovery period;
“(b) Approval of proposed measures pursuant to II.
"The Autorité de contrôle prudentiel et de résolution as a group controller cannot seize the European Insurance and Pension Authority when:
“(a) The four-month period referred to in I or a month referred to in II expired;
“(b) The Comptroller College agreed on the decisions referred to in I or II;
"(c) In the presence of an emergency situation as mentioned in II.
"Art. R. 356-28.-I.-The rules set out in sections R. 356-26 and R. 356-27 cease to apply to the subsidiaries referred to in I of section R. 356-24 in the following cases:
“(a) The condition referred to in paragraph I of Article R. 356-24 is no longer respected;
“(b) The condition referred to in Article R. 356-24 (b) is no longer respected and the group does not restore compliance with this condition within an appropriate time frame;
"(c) The conditions referred to in article R. 356-24, c and d, are no longer respected.
"In the case referred to in a, where the Autorité de contrôle prudentiel et de résolution as a group controller decides, after consulting the college of controllers, not to include the subsidiary in the control of the group it carries out, it shall notify the company referred to in the first paragraph of section R. 356-8.
"The undertaking referred to in the first paragraph of section R. 356-8 is responsible for ensuring that the conditions set out in section R. 356-24, b, c and d, are met on an ongoing basis. Otherwise, the company shall promptly inform the Autorité de contrôle de prudentiel et de résolution, as a group controller. This company submits a plan to restore compliance with the condition concerned within an appropriate time frame.
"The Autorité de contrôle prudentiel et de résolution as a group controller checks at least once a year that the conditions set out in b, c and article R. 356-24 continue to be respected. When the audit reveals deficiencies in this regard, the Autorité de contrôle prudentiel et de résolution as a group controller requires the company to submit a plan to restore compliance with the relevant conditions or conditions within an appropriate timeframe.
"When, after consulting the Comptroller's College, the Autorité de contrôle prudentiel et de résolution as a group controller considers that the plan referred to in the two preceding paragraphs is insufficient or that it is not implemented within the agreed time limit, it concludes that the conditions referred to in (b, c and I) of Article R. 356-24 are no longer respected.
"II.-The rules set out in sections R. 356-26 and R. 356-27 apply again to the undertaking referred to in the first paragraph of section R. 356-8 when the latter submitted a new application to subject these rules and obtained a favourable response in accordance with the procedure provided for in section R. 356-25.
"Art. R. 356-28-1.-The rules set out in sections R. 356-26 and R. 356-27 cease to apply to the subsidiaries referred to in Article R. 356-24 II in the following cases:
“(a) The condition referred to in paragraph II of Article R. 356-24 is no longer respected;
“(b) The condition referred to in Article R. 356-24 (b) is no longer respected and the group does not restore compliance with this condition within an appropriate time frame;
"(c) The conditions mentioned in article R. 356-24, c and d, are no longer respected.
"The parent company must promptly notify the Autorité de contrôle prudentiel et de résolution that the conditions set out in b, c and article R. 356-24 are no longer respected. It presents a plan to restore compliance with the conditions or conditions concerned within an appropriate time frame.
"When it has serious doubts about the permanent compliance with the conditions referred to in Article R. 356-24, c and d of II, the Autorité de contrôle prudentiel et de résolution may request the group controller to conduct the verifications of compliance with these conditions.
"Art. R. 356-28-2.-Where, pursuant to Article R. 356-26-1, a subsidiary having its head office in another Member State has been authorized to be subject to rules similar to those mentioned in Articles R. 356-26 and R. 356-27, the Autorité de contrôle prudentiel et de résolution as controller de groupe immediately informs the supervisory authority of that Member State of its possible decision not to include control of the company It shall notify the company referred to in the first paragraph of section R. 356-8.
"When, pursuant to section R. 356-26-1, a subsidiary having its head office in another Member State has been authorized to be subject to rules similar to those referred to in sections R. 356-26 and R. 356-27, it is the business referred to in the first paragraph of section R. 356-8 to ensure that the conditions referred to in (b, c and I) of section R. 356-24 are met If this is not the case, this company shall promptly inform the Autorité de contrôle prudentiel et de résolution and the supervisory authority of the Member State concerned. The company concerned submits a plan to restore compliance with the conditions or conditions within an appropriate timeframe.
"The Autorité de contrôle prudentiel et de résolution as a group controller shall verify at least once a year, that the conditions referred to in article R. 356-24, b, c and d, continue to be respected. It also conducts this audit at the request of the supervisory authority concerned, where the supervisory authority has serious doubts regarding the permanent compliance of these conditions.
"When the audit reveals deficiencies, the Autorité de contrôle prudentiel et de résolution, as a group controller, requires the undertaking referred to in the first paragraph of section R. 356-8 to submit a plan to restore compliance with the relevant conditions or conditions within an appropriate time limit.
"When, after consulting the Comptroller's College, the Autorité de contrôle prudentiel et de résolution as a group controller considers that the plan referred to in the second or fourth paragraph is insufficient or that it is not implemented within the agreed time limit, it concludes that the conditions referred to in b, c and in R. 356-24 are no longer complied with. It shall promptly inform the supervisory authority concerned.
"Art. R. 356-29.-The companies referred to in the first paragraph of Article R. 356-8 shall communicate at least once a year to the Autorité de contrôle prudentiel et de résolution any concentration of significant risks at the group level.
"The Autorité de contrôle prudentiel et de résolution as a group controller identifies, after consulting the other authorities concerned and the group, and taking into account the group concerned and its risk management structure, the type of risk that the insurance and reinsurance companies of the group declare in all circumstances.
"In order to identify significant risk concentrations to be reported, the Autorité de contrôle prudentiel et de résolution as a group controller, after consulting the other authorities concerned and the company referred to in the first paragraph of Article R. 356-8, imposes appropriate thresholds based on the required solvency capital, technical provisions or both.
"When controlling risk concentrations, the Autorité de contrôle prudentiel et de résolution as a group controller particularly ensures the potential risk of contagion in the group, the risk of conflict of interest and the level or volume of risk.
"The determination of significant risk concentrations is specified in Article 376 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 356-30.-The companies referred to in the first paragraph of section R. 356-8 shall, at least once a year, communicate to the Autorité de contrôle prudentiel et de résolution all significant intragroup transactions carried out by the insurance and reinsurance companies of the group, including those carried out with a natural person with close links to a company of the group. Very significant intragroup transactions are reported without delay.
"The Autorité de contrôle prudentiel et de résolution as a group controller, identifies, after consulting with the other authorities concerned and the company mentioned in the first paragraph of Article R. 356-8, and taking into account the group concerned and its risk management structure, the type of intragroup transactions that the insurance and reinsurance companies of the group declare in all circumstances.
"In order to identify significant intragroup transactions to be reported, the Autorité de contrôle prudentiel et de résolution as a group controller, after consulting the other authorities concerned and the group, imposes appropriate thresholds based on the solvency capital required, technical provisions or both.
"When controlling intragroup transactions, the Authority for prudential control and resolution, as a group controller, is particularly aware of the potential risk of contagion in the group, the risk of conflict of interest and the level or volume of risk.
"The determination of significant intragroup transactions is specified by Article 377 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Art. R. 356-30-1.-In the cases referred to in the second and third paragraphs of section L. 356-2, when the participating insurance or reinsurance company, the insurance group corporation, the group mutualist union referred to in thearticle L. 111-4-2 of the mutuality code, the social protection group society mentioned in theArticle L. 931-2 of the Social Security Code or the joint holding financial company is, or a related business of a regulated entity referred to in 1° of Article L. 517-2 of the Monetary and Financial Code or of a joint holding company referred to in Article L. 517-4 of the same code, subject to complementary supervision in accordance with Article L. 517-6 of the same code, or itself a regulated entity or a joint holding company subject to the same monitoring, the Autorité de contrôle prudentiel et de résolution may, after consultation with the other relevant control authorities, decide not to perform the control of the risk concentration referred to in the 29
"Art. R. 356-31.-In the case mentioned in the fifth paragraph of Article L. 356-2, the Autorité de contrôle prudentiel et de résolution exercises a general control of the transactions between insurance or reinsurance companies having for parent company a joint insurance company and the latter and its related companies. The provisions of articles L. 356-9 and L. 356-10, L. 356-21, R. 356-1-3 to R. 356-1-6 and R. 356-30 and L. 632-1-1 and L. 612-26 the monetary and financial code are applicable, to the extent that they are necessary for the exercise of this general control.
“Section 4
“Group governance system
"Art. R. 356-33.-The participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 shall review the written policies referred to in the third paragraph of Article L. 356-18 at least once a year. These policies are subject to prior approval by the Board of Directors or Supervisory Board as appropriate. They are adapted to take into account any significant changes affecting the system or domain concerned.
"For each of the responsibilities of the Board of Directors, Management and Control pursuant to the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, written policies specify whether it is the responsibility of the Board of Directors or the Director General or, where applicable, the Supervisory Board or the Director of Participating and Mother Enterprises referred to in the second and third paragraphs of Article L. 356-2, without prejudice to the other provisions.
"Art. R. 356-34.-The risk management system referred to in Article L. 356-19 includes the information strategies, processes and procedures necessary to detect, measure, control, manage and report on a permanent basis the risks to which the group is or could be exposed and the interdependencies between these risks.
"This system is integrated with the organizational structure and decision-making procedures of the group and duly taken into account by those who actually lead the group or who are responsible for the key functions referred to in the second paragraph of Article L. 356-18.
"Art. R. 356-35.-The risk management system covers the risks to be taken into consideration in calculating the solvency capital required in accordance with sections R. 356-19 to R. 356-22, as well as the risks that do not enter or enter fully into this calculation.
"This system covers, at a minimum, subscription and provisioning, asset-liability management, investments, particularly in financial contracts, liquidity and concentration risk management, operational risk management, reinsurance and other risk mitigation techniques. These areas are also specified by the written policies referred to in the third paragraph of Article L. 356-18.
"In the event of the application of the equalizer adjustment referred to in R. 351-4 or the volatility correction referred to in R. 351-6, participating companies and mothers, respectively referred to in the second and third paragraphs of section L. 356-2, establish a liquidity plan with a forecast of incoming and outgoing cash flows in respect of assets and liabilities subject to these adjustments and
"Art. R. 356-36.-I.-In the case of asset and liability management, participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 regularly assess the sensitivity of the prudential technical provisions and the group's own funds to the assumptions underpinning the extrapolation of the curve of interest rates not relevant to R. 351-3.
"II.-In the event of the application of the equalizer adjustment referred to in Article R. 351-4, the participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 regularly assess the sensitivity of the prudential technical provisions and of the group's own eligible funds to the assumptions underlying the calculation of the equalizer adjustment, including the calculation of the fundamental margin referred to in Article R. 5 They also assess the sensitivity of prudential technical provisions and eligible equity of the group to changes in the composition of the assigned asset portfolio as well as the consequences of a reduction in the equalizer adjustment to zero.
"III.-In the event of the application of the volatility correction referred to in R. 351-6, the participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 regularly assess the sensitivity of the prudential technical provisions and of the eligible funds of the group to the assumptions underlying the calculation of the volatility correction and the potential consequences of a forced sale of
"IV.-The participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 each year submit the assessments referred to in I, II and III of this Article to the Authority for prudential control and resolution in the context of the communication of information referred to in Article L. 356-21. In the event that the reduction of the equalizer adjustment or zero volatility correction would result in the failure to cover the solvency capital required at the group level, the company also submits an analysis of the measures it could take in order to restore the level of eligible equity corresponding to the solvency capital required or to reduce the risk profile in order to ensure the compliance of the solvency capital required of the group.
"V.-In the event of the application of the volatility correction referred to in R. 351-6, the written risk management policy referred to in L. 356-18 sets out the criteria for applying the volatility correction.
"Art. R. 356-37.-In respect of investment risk, participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2, respectively, must be in a position to demonstrate that they meet the group's requirements under Chapter III of this title.
"Art. R. 356-38.-The risk management function at the group level referred to in Article L. 356-18 is structured to facilitate the implementation of the risk management system referred to in Article L. 356-19.
"Art. R. 356-39.-In the event of the use of external credit assessments for the calculation of prudential technical provisions and solvency capital requirements, participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 shall verify, as part of their group risk management, the appropriateness of these assessments by using, as appropriate, additional assessments.
"Art. R. 356-40.-The risk management function referred to in Article R. 356-38 of the groups that use for the calculation of the solvency of the group a partial or integral internal model approved in accordance with Articles R. 356-20 to R. 356-20-3, covers the tasks of design, implementation, testing and validation of the internal model, of documentary monitoring of this internal model and of any changes that are made to it
"The purpose of the risk management function is, inter alia, to inform the Director General or the Director General of the participating company or mother referred to in the second and third paragraphs of section L. 356-2 of the performance of the internal model and to suggest any improvements that may be made to the risk management function. It also provides the Director General or the Director General with a state of progress in addressing the weaknesses that may have been detected. All of these elements are transmitted to the Board of Directors or Supervisory Board by the Director General or the Director General.
"Art. R. 356-41.-The internal assessment of the risks and solvency referred to in Article L. 356-19 shall include at least:
“(a) The overall need for solvency, taking into account the specific risk profile, approved risk tolerance limits and the group's business strategy;
“(b) Continuous compliance with group-level capital requirements;
"(c) The difference between the group's risk profile and the assumptions underlying the required solvency capital calculated in accordance with R. 356-19 to R. 356-22.
"Art. R. 356-42.-I.-In order to assess the overall need for solvency referred to in R. 356-41, participating companies and mothers referred to respectively in the second and third paragraphs of Article L. 356-2 put in place procedures that are proportionate to the nature, extent and complexity of the risks inherent in the activity of the group and that allow them to identify and identify the risks inherent in the activity of the group These companies demonstrate the relevance of the methods they use for this evaluation.
"II.-When the solvency calculation is conducted at the group level according to the first method referred to in section R. 356-19, participating companies and mothers mentioned respectively in the second and third paragraphs of section L. 356-2 provide the group controller with an appropriate analysis of the difference between the sum of the different solvency capital amounts required for all the insurance or reinsurance companies related to the group and the required capital
"Art. R. 356-43.-In the event of the application of the equalizer adjustment referred to in section R. 351-4, the correction for volatility referred to in section R. 351-6 or the transitional measures referred to in sections L. 351-4 and L. 351-5, the participating companies and mothers referred to in the second and third paragraphs of section L. 356-2 shall assess the conformity of the capital
"Art. R. 356-44.-When an internal model is used for the calculation of solvency of the group, the internal risk and solvency assessment makes it possible to reconcile the internal risk measures with the solvency capital required.
"Art. R. 356-45.-The internal assessment of risks and solvency is an integral part of the group's business strategy. This is systematically reflected in the Group ' s strategic decisions.
"The participating companies and mothers referred to 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 significant changes in the group's risk profile.
"They inform the Authority of prudential control and resolution of the conclusions of each internal risk and solvency assessment, as part of the information they must provide to that authority pursuant to Article L. 356-21.
"Art. R. 356-46.-The Authority for prudential control and resolution as a group controller shall decide on the authorization provided for in the fifth paragraph of Article L. 356-19 within five months.
"Art. R. 356-47.-When the participating company or mother mentioned respectively in the second or third paragraph of Article L. 356-2 applies the option provided in the fifth paragraph of Article L. 356-19, it transmits a translated version of the elements of the single document mentioned in the seventh paragraph of Article L. 356-19 that correspond to any subsidiary of the group for which the supervisory authority of the member State where
"The Autorité de contrôle prudentiel et de résolution may require that the elements of the single document referred to in the seventh paragraph of Article L. 356-19 that correspond to a subsidiary enterprise subject to its control be forwarded to it in French, after having previously consulted the participating company or mother referred to in the second or third paragraph of Article L. 356-2, the college of controllers and the group controller respectively.
"Art. R. 356-48.-The internal control system referred to in 3° of section L. 356-19 includes at least administrative and accounting procedures, an internal control framework, appropriate information provisions at all levels of the group and a compliance verification function referred to in section L. 356-18.
"It also includes:
“(a) Adequate mechanisms for the solvency of the group to identify and measure all significant risks incurred and to appropriately link the funds eligible for risk;
“(b) Healthy reporting and accounting procedures to control and manage intra-group transactions and risk concentration.
"Art. R. 356-48-1.-The compliance verification function referred to in the second paragraph of section L. 356-1 shall, inter alia, advise the Director General or the Director General as well as the Board of Directors or Supervisory Board of the participating or parent company referred to in the second or third paragraph of section L. 356-2, on all matters relating to the compliance with the legislative, regulatory and administrative provisions relating to the insurance
"This function also aims to assess the potential impact of any change in the legal environment on the operations of the group concerned, as well as to identify and assess the risk of compliance.
"Art. R. 356-49.-The internal audit function referred to in section L. 356-18 assesses the adequacy and effectiveness of the group's internal control system and other elements of the group's governance system. This function is carried out in an objective and independent manner of operational functions.
"The conclusions and recommendations of the internal audit, as well as the proposals for actions arising from each of them, are communicated to the board of directors or supervisory board by the Director General or the executive officer of the participating undertaking or the parent company referred to in the second and third paragraphs of section L. 356-2, respectively. The Director General or the Director General shall ensure that these actions are completed and reported to the Board of Directors or to the Supervisory Board of these undertakings.
"Art. R. 356-50.-The actuarial function referred to in the second paragraph of Article L. 356-18 shall, at the group level, coordinate the calculation of the prudential technical provisions, ensure the appropriateness of the methodologies, underlying models and assumptions used for the calculation of the prudential technical provisions, to assess the sufficiency and quality of the data used in the calculation of these
"It provides an opinion on the overall subscription policy and the adequacy of reinsurance arrangements at the group level. It contributes to the effective implementation of the risk management system referred to in Article L. 356-18, particularly with regard to risk modelling underpinning the calculation of capital requirements and the internal assessment of risks and solvency referred to in Article L. 356-19.
"It shall inform the board of directors or the supervisory board of the participating company or of the parent company referred to in the second and third paragraphs of section L. 356-2, respectively, of the reliability and adequacy of the calculation of prudential technical provisions, under the conditions set out in section L. 356-18.
"Section R. 354-6-1 is applicable to persons responsible for the actuarial function referred to in the second paragraph of section L. 356-18.
"Art. R. 356-50-1.-Articles 258 to 275 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 are applicable at the group level.
“Section 5
“Information to be provided to the control authorities by the groups
"Subsection 1
“General provisions
"Art. R. 356-51.-The information at the level of the group transmitted to the Autorité de contrôle prudentiel et de résolution pursuant to the II of Article L. 356-21 is previously approved:
“(a) For the report on solvency and financial situation, by the bodies mentioned in the first paragraph of Article R. 356-55;
“(b) For the regular report to the controller, by the board of directors or the supervisory board of the participating company or mother referred to in the second or third paragraph of section L. 356-2, respectively;
"(c) For annual and quarterly quantitative statements, by the Director General or the Director General of the same company;
"(d) For the report to the supervisory authority on the internal risk and solvency assessment, by the board of directors or supervisory board of the same undertaking.
"States submitted periodically to the Autorité de contrôle prudentiel et de résolution, other than those defined in the preceding paragraphs and that the Autorité determines in accordance with the first paragraph of Article L. 612-24 of the Monetary and Financial Code, are previously approved by the Director General or the Director General of the participating company or mother referred to in the second or third paragraph of section L. 356-2, respectively.
"The requirements in terms of content, deadline and terms of transmission of information referred to in Article L. 356-21 are specified in sections 290 to 297,300,301,303 and 304 to 314 of the Delegated Regulation (EU) No 2015/35 of the Commission of 10 October 2014.
"Art. R. 356-52.-In accordance with the sixth paragraph of Article L. 356-21, the Autorité de contrôle prudentiel et de résolution as a group controller may, after consultation with the members of the college of controllers, limit the regular communication of information for control purposes at the level of the group whose periodicity is less than one year, when the provision of such information would represent a disproportionate burden to the group taking into account of
"Art. R. 356-53.-In accordance with the sixth paragraph of Article L. 356-21, the Prudential and Resolution Authority as a group controller may, after consultation with the members of the Comptroller's College, limit or dispense regular line-to-line communication at the group level, when:
“(a) The provision of this information would be a disproportionate burden given the nature, extent and complexity of the risks inherent in the activity of the group;
“(b) The provision of this information is not necessary for the effective control of the group;
"(c) The dispensation does not undermine the stability of the financial systems involved in the Union; and
"(d) The group is able to provide information on an ad hoc basis.
"Art. R. 356-53-1.-In the implementation of the provisions of Articles R. 356-52 and R. 356-53, the Autorité de contrôle prudentiel et de résolution assesses whether the provision of information represents a disproportionate burden on groups, in the light of the nature, magnitude and complexity of the risks to which the group is exposed, and in the light of at least:
“(a) The volume of premiums, technical provisions and assets of the group;
“(b) The volatility of claims and compensation covered by the companies of the group;
"(c) Market risks to which the investment of the group’s companies is taking place;
"(d) Level of risk concentration;
“e) Potential effects of managing the Group's assets on financial stability;
“(f) Systems and structures at the group level enabling it to communicate information for the purposes of control and written policy, which ensures that the information is appropriate and accurate;
“(g) The adequacy of the governance system at the group level;
“(h) From the level of equity covering the required solvency capital and the minimum capital required.
"Subsection 2
“Transitional provisions
"Art. R. 356-54.-I.-Until 1 January 2020, the participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 shall transmit to the Autorité de contrôle prudentiel et de résolution as a group controller the report on solvency and financial situation, the regular report to the controller and the annual quantitative statements referred to in the II of Article L.
“(a) No later than 26 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2016 and January 1, 2017;
“(b) No later than 24 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2017 and January 1, 2018;
"(c) No later than 22 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2018 and June 29, 2019;
"(d) No later than 20 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2019 and January 1, 2020.
"II.-Until 1 January 2020, the participating companies or mothers referred to in the second and third paragraphs of Article L. 356-2 shall forward to the Authority for prudential control and resolution as a group controller the quarterly quantitative statements referred to in Article L. 356-21 II according to the following schedule:
“(a) No later than 14 weeks after the end of the quarter, for quarterly exercises closed between January 1, 2016 and January 1, 2017;
“(b) No later than 13 weeks after the end of the quarter, for quarterly exercises closed between January 2, 2017 and January 1, 2018;
"(c) No later than 12 weeks after the end of the quarter, for quarterly exercises closed between January 2, 2018 and June 29, 2019;
"(d) No later than 11 weeks after quarter-end, for quarters closed between June 30, 2019 and January 1, 2020.
"III.-As of 1 January 2020, the deadlines for transmission of the information referred to in I and II are provided by Article 373 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
“Section 6
“Information to be provided to the public by groups
"Subsection 1
“General provisions
"Art. R. 356-55.-The report on solvency and financial situation at the level of the group referred to in section L. 356-23 is approved by the board of directors or supervisory board of the participating company or mother referred to respectively in the second or third paragraph of section L. 356-2. It contains the information referred to in Article R. 355-7 that is applicable at the group level.
"This report also contains information on the legal structure of the group, its governance system and its organizational structure, including a presentation of all major subsidiaries, related companies and branches that relate to the group.
"The requirements for the content of the solvency and financial situation report at the group level, transmission time and transmission modalities are defined in sections 356 to 362 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"A Minister's order for the economy specifies the detailed information to be provided by the companies involved in the Group's credit and financial situation report.
"Art. R. 356-56.-The publication of the required solvency capital of the group referred to in Article R. 355-7, as set out in the report referred to in Article R. 356-55, shall indicate, in a separate manner, the amount calculated in accordance with the provisions L. 356-15 and the amount of any additional capital requirement imposed in accordance with Article L. 356-16, or the effect of the specific parameters referred to (2) These indications are accompanied by an explanation of the reasons that led the Autorité to prudential control and resolution to impose such requirements and parameters.
"Art. R. 356-57.-The Prudential Control and Resolution Authority as a group controller may authorize participating companies and mothers, respectively referred to in the second and third paragraphs of Article L. 356-2, not to publish information in the report on solvency and financial situation at the level of the group referred to in Article L. 356-23, under the conditions set out in Article R. 355-9. The conditions under which this authorization ceases to be valid are defined in Article 363 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014.
"Art. R. 356-57-1.-Sont at least considered major events within the meaning of Article L. 355-5, for the purposes of the second paragraph of Article L. 356-23, the events having one of the following characteristics:
“(a) Where a deviation from the minimum required solvency capital of the group is observed and the prudential control and resolution authority as a group controller considers that participating or parent companies referred to respectively in the second and third paragraphs of Article L. 356-2 will not be able to submit to it a realistic short-term financing plan referred to in Article L. 352-8 or that the AMF does not achieve that time limit
“(b) Where a significant deviation from the group's required solvency capital is observed and the prudential and resolution control authority as a group controller does not have a realistic recovery plan referred to in Article L. 352-7 within two months from the date the deviation was observed.
"With respect to the case referred to in a, the Autorité de contrôle prudentiel et de résolution as a group controller requires the company concerned to publish without delay the amount of the deviation observed, with an explanation of its origin and consequences and any corrective action taken. If, despite the presentation of a short-term financing plan initially considered realistic by the AMF, a deviation from the minimum of solvency capital required by the group was not corrected three months after it was found, this gap is the subject of a publication at the expiry of this period, with an explanation of its origin and consequences as well as of the corrective measures already taken and any further corrective action taken.
"With respect to the case referred to in b, the Autorité de contrôle prudentiel et de résolution as a group controller requires the company concerned to publish without delay the amount of the deviation observed, with an explanation of its origin and consequences and any corrective action taken. If, despite the presentation of a recovery plan initially considered realistic by the AMF, a significant deviation from the solvency capital required by the group was not corrected six months after it was found, this discrepancy is the subject of a publication at the expiry of this period, with an explanation of its origin and consequences, as well as the corrective measures taken and any new corrective action planned.
"Article 363 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 specifies the terms and conditions of publications involving companies in the cases provided for in this Article.
"Art. R. 356-58.-The participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 may decide to publish in the report referred to in Article L. 356-23 any information or explanations regarding their creditworthiness and their financial situation, the publication of which is not already required under Articles L. 356-23, R. 356-55 to R. 356-58.
"Art. R. 356-59.-The unique report on solvency and financial situation at the group level contains the following:
“(a) Information at the group level to be published in accordance with articles L. 356-23, L. 356-24 and R. 356-55 to R. 356-58;
“(b) Information on any group insurance and reinsurance undertaking that must be individually identifiable and published in accordance with Chapter V, section 2 of this title.
"Art. R. 356-60.-The application, which may be submitted by participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2, respectively, for the purpose of obtaining the authorization referred to in Article L. 356-25 shall be filed with the Autorité de contrôle prudentiel et de résolution as a group controller at least five months before the end of the fiscal year on which the report is to be carried on The Authority shall take action within five months after consulting the members of the College of Controllers and taking into account the opinions and reservations expressed by the members of the College of Controllers.
"However, where a single report on solvency and financial situation at the group level contains a substantial omission in relation to the requirements referred to in section 2 of chapter V of this title for a company subject to its control, the Autorité de contrôle prudentiel et de résolution as a group controller may require that this undertaking publish the necessary additional information.
"The provisions relating to the single report on solvency and financial situation at the group level are specified in articles 365 to 370 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014.
"Subsection 2
“Transitional provisions
"Art. R. 356-61.-Until January 1, 2020, the participating companies and mothers referred to in the second and third paragraphs of Article L. 356-2 publish the annual report on solvency and financial situation at the group level referred to in Article L. 356-23 according to the following schedule:
“(a) No later than 26 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2016 and January 1, 2017;
“(b) No later than 24 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2017 and January 1, 2018;
"(c) No later than 22 weeks after the closing of the company's fiscal year, for fiscal years between January 2, 2018 and June 29, 2019;
"(d) No later than 20 weeks after the closing of the company's fiscal year, for fiscal years between June 30, 2019 and January 1, 2020.
" Effective January 1, 2020, the deadlines for publication of this report are set out in Article 300 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014. »
Title VI of Book III of the same code is amended:
1° Section R. 362-2 is replaced by the following provisions:
"Art. R. 362-2.-If the general representative referred to in Article L. 362-1 is a natural person, he must have his domicile and reside in French territory. It must be provided by the company concerned with sufficient powers to engage the company in respect of third parties and to represent it vis-à-vis French authorities and courts. It fulfils the proficiency and accountability requirements referred to in Article L. 322-2.
"If the agent-general referred to in Article L. 362-1 is a legal entity, the head office of the corporation shall be established in French territory and the natural person appointed to represent it shall meet the conditions set out in the preceding paragraph and shall assume, as such, the responsibility for the performance by the agent-general of its obligations.
"This section applies to the agent general of Lloyd's of London. » ;
2° It is inserted in chapter III an article R. 363-1, as follows:
"Art. R. 363-1.-The Autorité de contrôle prudentiel et de résolution shall communicate to the European Commission, if any, the measures taken pursuant to the second and fourth paragraphs of Article L. 363-4. » ;
3° A chapter V is added as follows:
“Chapter V
“Co-insurance provisions
"Art. R. 365-1.-To allow insurance companies that are parties to a co-insurance operation to benefit from the exemption provided for in section L. 365-1, the transaction must meet the following conditions:
« 1° The risk is covered by a single contract with a global premium for the same duration;
« 2° Insurers are not mutually supportive;
« 3° One of the insurers is designated as an aperitor: the aperitor must assume its governing role and determine, in particular, the terms of insurance and pricing.
"Art. R. 365-2.-The Autorité de contrôle prudentiel et de résolution works closely with the European Commission to examine the difficulties that might arise in the implementation of Article L. 365-1, including the exercise of the steering role of the aperitor and the conditions for the participation of insurers in the coverage of risk. »
Book I of the same code is amended as follows:
1° After the article R. 131-6, an article R. 131-7 is inserted as follows:
"Art. R. 131-7. - For life insurance or capitalization contracts whose insured sum is determined in relation to a reference value, the corresponding rights expressed in units of account shall be represented on the assets of the balance sheet by investments in the composition of that reference value and in the proportions fixed by that composition. » ;
2° After the article R. 132-5-2, an article R. 132-5-3 is inserted as follows:
"Art. R. 132-5-3. - The compensation referred to in the fourth paragraph of Article L. 132-21-1 shall not exceed 5% of the current value of the commitments made by the insurer and by the contractors of the contract referred to in the first paragraph of Article L. 131-21-1 and shall be void after a period of ten years from the date of effect of the contract.
"For the purposes of this section, the current value of the commitments made by the insurer and by the insured does not take into account any guarantees of non-expendable fidelity by the insured at the time of the purchase. These guarantees must be explicitly described in the contract and clearly distinguished from the guarantee which is the main object of the guarantee. » ;
3° After article R. 134-1, an article R. 134-1-1 is inserted as follows:
"Art. R. 134-1-1. - For the whole of this chapter, the words: “Mathematic visions” must be understood within the meaning of the provisions of article R. 343-3”;
4° In II of article R. 134-13, the sentence: "It may validly be included in the report referred to in article L. 322-2-4" is replaced by the sentence: "It is transmitted to the Authority for prudential control and resolution. » ;
5° The last paragraph of section R. 134-14 is replaced by the following provisions:
"For companies referred to in section L. 310-3-2, section R. 332-65 applies. By derogation from this section, section R. 332-3 does not apply to the auxiliary accounting of these undertakings. » ;
6° Section R. 143-5 is replaced by the following provisions:
"Art. R. 143-5. - The report referred to in the last paragraph of Article L. 143-6 is transmitted to the Authority for prudential control and resolution. » ;
7° After article R. 144-18, an article R. 144-18-1 is inserted as follows:
"Art. R. 144-18-1. - For all of the provisions of this section relating to the technical rules specific to the popular retirement savings plan, the words: “Mathematical plans”, “technical plans”, “exigibility plans” and “provisions for participation in profits” must be agreed in the sense defined in article R. 343-3. » ;
8° In the second sentence of Article R. 144-19, the words: "It is not taken into account for the constitution" are replaced by the words: "For the companies mentioned in Article L. 310-3-2, it is not taken into account for the constitution".
I. - Title I of Book III of the same code is amended as follows:
1° Section R. 310-6-1 is replaced by the following provisions:
"Art. R. 310-6-1. - Companies approved in France referred to in Article L. 310-1 and Article L. 310-1-1 shall inform the Autorité de contrôle prudentiel et de résolution du projet de modifications de leurs statuts, within a period of two months before the submission of this project to the General Assembly.
"By derogation from the previous paragraph, where a draft amendment of the statutes provides for the reduction of its social capital, the company must, before submitting this amendment to the general assembly, obtain the agreement of the Authority for prudential control and resolution which shall decide within two months. » ;
2° In Article R. 310-10-1, the words: "From I to IV titles, the companies referred to in Article L. 310-10-1" are replaced by the words: "From I to V titles, the companies referred to in Article L. 310-10-1";
3° In R. 310-17-1, the words: "the Community" are replaced by the words: "the Union" and the reference: "L. 310-12-7" is replaced by the reference: "L. 310-14".
II. - Title II of Book I of the same code is amended as follows:
1° In articles R. 321-2 and R. 321-5-2, the words: "competent, within the meaning of the 11th of Article L. 334-2," are replaced by the words: "in charge of the supervision of the credit or investment institutions of the Member State concerned";
2° Articles R. 321-8, R. 321-9, R. 321-23, R. 321-28, R. 321-30 and R. 321-31 are repealed;
3° The last paragraph of Article R. 321-15 is deleted;
4° In the first paragraph of article R. 321-22:
(a) The words: "have ceased to be valid or" and the words: "has ceased to be valid or has been the subject of a decision recognizing its caducity" are deleted;
(b) After the words: "observing their caducity" and before the words: "submitting to the approval of the Authority for prudential control and resolution" are inserted the words "in accordance with Article L. 321-10-2";
(c) The words: "within one month from the date" are replaced by the words: "within one month from the date of publication in the Official Journal of the French Republic of";
5° Section III is repealed;
6° In sections R. 322-8 and R. 322-78, the words: "as long as they enter into the constitution of the credit margin under sections R. 334-3 and R. 334-11 of this Code. » are deleted;
7° Section R. 322-53-2 is replaced by the following provisions:
"Art. R. 322-53-2. - I. - The general management of the corporation is assumed, under the control of the board of directors and within the direction agreed by the board, by a natural person appointed by the board and bearing the title of Director General. However, if the corporation's statutes provide, the general management may be assumed by the chair of the board of directors.
"On the proposal of the Director General, the Board of Directors may appoint one or more physical persons to assist the Director General with the title of Director General Delegate.
"When the Director General assumes the functions of Chair of the Board of Directors, the corporation shall appoint at least one Executive Director.
"The statutes set the maximum number of delegated directors general, which cannot exceed five.
"Before his or her appointment, the person presses for the position of Director General or Associate Director General is required to declare all the professional activities and elective functions that he or she intends to maintain. The Board of Directors shall decide on the compatibility of the continuation of the exercise of these activities or functions with the functions of Director General or Associate Director General. Subsequently, it also decides on other activities or functions that the Executive Director or the Executive Director intends to carry out.
“II. - The Director General is revocable at any time by the Board of Directors. The same is true, on the proposal of the Director-General, of delegated directors-general. If the revocation is decided without fair cause, it may result in damages, except where the Director General assumes the functions of Chairman of the Board of Directors.
"When the Director General ceases or is unable to perform his or her duties, delegated Directors General shall, unless the Board decides otherwise, retain their functions and duties until the new Director General is appointed.
"In the event that the Executive Director or the Executive Director would have entered into a contract with the company, his revocation does not result in the termination of the contract. » ;
8° Article R. 322-53-3 is supplemented by two paragraphs as follows:
"In accordance with the Director General, the Board of Directors determines the extent and duration of the powers conferred on delegated Directors General.
"Delegated Directors General shall have the same powers with respect to third parties as the Director General. » ;
9° In II of Article R. 322-55-1, after the words: "the remuneration of the Director General" are inserted the words: ", general directors delegated";
10° In the III of Article R. 322-55-3, after the words: "functions of Director General", the words ", of Director General Delegate" and, after the words: "When a Director General" are inserted the words ", a Director General Delegate";
11° In the V of Article R. 322-55-4, after the words: "the Director General" are inserted the words: ", the Delegate General Directors";
12° In R. 322-72, the last paragraph is replaced by the following two paragraphs:
"For the companies referred to in section L. 310-3-2 and governed by this section, this amount cannot exceed the ratio of the credit margin referred to in sections R. 334-5, R. 334-13 and R. 334-19 on the one hand, and on the other hand, the number of societal persons recognized at the end of the year on which the approved accounts are held. However, where the actual amount of solvency is less than the regulatory minimum amount, the first term of this report is higher than the amount of this deficiency.
"For the undertakings referred to in section L. 310-3-1 and governed by this section, this amount cannot exceed the ratio of the solvency capital required under section L. 352-1 on the one hand and on the other hand the number of societal persons recognized at the close of the year on which the approved accounts are held. However, where the eligible equity mentioned in section L. 351-6 is insufficient to cover the required solvency capital, the first term of this report is increased by the amount of this deficiency. » ;
13° In R. 322-77, the words: "or their adjusted creditworthiness referred to in R. 334-41" are replaced by the words: ", for the enterprises referred to in L. 310-3-2, or their eligible equity, for the enterprises referred to in L. 310-3-1,";
14° In R. 322-144, the first paragraph is replaced by the following:
"For companies with tone-form under Article L. 310-3-2 and whose credit margins are not equal to the minimum regulatory amount as well as for companies with tone-form under Article L. 310-3-1 and whose equity is not qualified to cover one of the two requirements mentioned in Articles L. 352-1 and L. 352-5, the Authority of prudential control and » ;
15° Sections R. 322-161 and R. 322-162 are replaced by the following:
"Art. R. 322-161. - I. - The statutes of mutual insurance companies must set the conditions for the admission, withdrawal or exclusion of companies affiliated to the mutual insurance company.
"They must foresee that the admission, withdrawal or exclusion of an affiliate by convention is the subject of a pre-report to the Authority for prudential control and resolution, together with a record of which the Authority sets the composition. The Authority may, within a period of three months from the date of receipt of the record, object to the transaction, if it appears contrary to the interests of the insured persons of the affiliates, by a reasoned decision addressed to the person(s) interested by registered letter with acknowledgement of receipt. If the Authority fails to object, the operation may be carried out upon the expiry of this period.
"These statutes must also:
“(a) Setting, without being kept by a minimum, the amount of their settlement funds;
“(b) Provide that the General Assembly is composed of all affiliated companies, each represented exclusively by one of its officers, directors or members of the duly mandated Supervisory Board or by a representative directly appointed either by the General Assembly or by delegates themselves appointed by the General Assembly or, where appropriate, the Joint Commission of the Affiliated Enterprise;
"(c) Determine the number of votes each of these companies has;
"(d) Determine the terms and conditions of the effective exercise of the dominant influence of the mutual insurance company on the decisions, including financial, of affiliated companies.
“II. - The statutes must give the mutual insurance company control powers in respect of the affiliated companies, including with respect to their management. They may, in particular, provided that the statutes of the affiliated companies permit:
“(a) Subordinate the prior authorization of the board of directors or supervisory board of the mutual insurance company to the conclusion by these undertakings of transactions listed in the statutes, including the acquisition or assignment of properties by nature, the acquisition or sale or the total or partial disposal of assets or interest, the establishment of security rights and the granting of bonds, endorsements or guarantees;
“(b) Provide sanctioning powers of the mutual insurance group corporation with respect to affiliates.
"III. - The statutes may provide that any company requesting its admission to the mutual insurance group corporation amends its own statutes in advance to recognize the right of the mutual insurance group corporation to request the convening of its general assembly or, where applicable, of the parity board and to propose to them the election of new candidates for the functions of administrator or member of the supervisory board.
"IV. - The provisions of Article R. 322-47 and Article R. 322-48 apply to the statutes of mutual insurance companies.
"Art. R. 322-162. - Mutual insurance companies may be administered by a board of directors and a director general or by a supervisory board and a director, under the conditions set out in subsection 2 of section 4 of this chapter.
"By derogation from the first paragraph, the board of directors of the mutual insurance company shall be composed, in terms determined by its statutes, of members appointed by the General Assembly, whose number shall not be less than five. » ;
16° Section 1 of Chapter III is repealed;
17° In R. 323-11, the words: "the European Community" are replaced by the words: "the European Union";
18° In R. 324-4, the words: "the necessary credit margin" are replaced by the words: "the eligible equity required for the coverage of its required credit capital and its minimum capital requirement";
19° Article R. 325-9 is repealed;
20° The title in section 3 of chapter VI is replaced by the following title:
“Section 3
"Impact of the liquidation procedures of insurance companies whose headquarters is located in a Member State of the European Union other than France";
21° In R. 326-4, the words: "community insurance company" are replaced by the words: "an insurance company whose head office is located in a Member State of the European Union";
22° In article R. 327-1, after the words: "technical provisions" are inserted the words: ", in the sense defined in title IV of book III of this code",
23° Section R. 328-1 is amended as follows:
(a) At 1°, the references: "R. 332-13-2 and R. 332-38" are replaced by the reference: "and R. 329-4";
(b) The 2° is replaced by the following:
« 2° Not to produce a recovery strategy, recovery plan, recovery plan or short-term funding plan mandated in accordance with the provisions of sections R. 335-1, R. 335-4, R. 335-5 or R. 352-33 or not to implement the approved conditions and times; "
Title III of Book III of the same code is amended as follows:
1° Its title is replaced by the following title:
« Title III
"REGIME PRUDENTIEL APPLICABLE TO ENTREPRESENTATIVES DO NOT REELEVANT TO THE DIT REGIME " SOLVABILITY II"
2° Chapter I is replaced by the following:
“Chapter I
"Regulated commitments
"Art. R. 331-1.-For the undertakings referred to in Article L. 310-3-2, the elements referred to in Article R. 343-1 are regulated commitments for the purposes of this title.
"Art. R. 331-2.-The provisions of this chapter apply in the territories of the French Southern and Antarctic Lands and in the Wallis and Futuna Islands.
"Art. R. 331-3.-The fifth paragraph of section R. 343-5 and section R. 343-6 apply to the undertakings referred to in section L. 310-3-2 only in the event that these undertakings meet, prior to endowment to the provision for risk of exigibility, to the representation of their regulated commitments and to the coverage of the minimum solvency margin requirement. » ;
3° Chapter II:
(a) Section R. 332-1 is replaced by the following provisions:
"Art. R. 332-1.-The regulated commitments referred to in R. 331-1 must, at any time, be represented by equivalent assets.
"These assets must be located in the territory of a Member State of the European Union.
"The commitments made in a currency must be covered by congruent assets, that is, wording or achievable in that currency. » ;
(b) Section R. 332-1-2 is replaced by the following provisions:
"Art. R. 332-1-2.- Insurance companies must continuously assess their financial risks by performing, among other things, simulations of the impact of changes in interest rates and stock exchange rates on their assets and liabilities, and comparative estimates of their liabilities and the liquidity of their assets. The results of this evaluation are determined and presented according to general principles defined by the Autorité de contrôle prudentiel et de résolution.
" Mutuals and unions governed by Book II of the Mutual Code and the Provident Institutions and their unions governed by Title 3 of Book 9 of the Social Security Code are subject to the provisions of the previous paragraph only if they are approved for other branches than branches 1 and 2, or if their net reinsurance contributions collected in branches 1 and 2 during the last known fiscal year exceed 10 million euros or if » ;
(c) Article R. 332-2:
(i) In the first paragraph, the words: "insurance companies referred to in Article L. 310-1" are replaced by the words: "insurance companies referred to in Article L. 310-3-2";
(ii) The 12° ter is replaced by the following:
"12° ter Other loans of a total duration of not less than two years, not with guarantees, benefiting from sufficient credit quality and granted to persons referred to in the fifth and sixth paragraphs of Article R. 332-13, by a company other than the insurance company. Mutuals and unions governed by Book II of the Code of Mutuality, as well as pension institutions governed by Title 3 of Book 9 of the Social Security Code, cannot represent their commitments regulated by the assets referred to in this paragraph; »
(d) In article R. 332-3, in the first paragraph, the words: "an insurance company referred to in 1°, 3° or 4° of article L. 310-2" are replaced by the words: "an insurance company referred to in article L. 310-3-2";
(e) Article R. 332-3-1:
(i) In the first paragraph, the words: "an insurance company referred to in 1°, 3° or 4° of Article L. 310-2" are replaced by the words: "an insurance company referred to in Article L. 310-3-2";
(ii) After the last paragraph of the first paragraph, a new paragraph is inserted:
"For the purposes of these provisions, insurance companies holding shares of variable capital investment companies and mutual investment shares must be able to demonstrate that they comply with this section as if they themselves own directly, on the basis of their participation, the values held by these organizations; »
(f) In R. 332-3-2, the words: "companies operating both in French territory and in Monegasque territory" are replaced by the words: "insurance companies referred to in Article L. 310-3-2 operating both in French territory and in Monegasque territory";
(g) Section R. 332-5 is replaced by the following provisions:
"Art. R. 332-5.- Investments allowed in representation of mathematical provisions of life insurance or variable capitalization contracts, in which the insured sum is determined in relation to a reference value, are not subject to the limitations set out in sections R. 332-3 and R. 332-3-1. » ;
(h) In Article R. 332-9, the words: "The companies mentioned in Article L. 310-2" are replaced by the words: "the insurance companies referred to in Article L. 310-3-2";
(i) Articles R. 332-10-1 to R. 332-10-3 are repealed;
(j) In article R. 332-13:
(i) After the last paragraph of the first paragraph, a sub-item is inserted:
"The fourth to seventh paragraphs of this 1° do not apply to mutual unions governed by Book II of the Code of Mutuality, as well as to institutions of foresight and unions governed by Title 3 of Book 9 of the Code of Social Security. » ;
(ii) At 2°, the words "Economic Community" are replaced by the words "Union";
(k) In Article R. 332-14, the words: "the Community" are replaced by the words: "the Union" and the words: "community directive of 20 December 1985 amended on securities collective investment bodies" are replaced by the words: "Guideline No. 2009/65/EC of the European Parliament and the Council of 13 July 2009 coordinating the legislative, regulatory and administrative provisions concerning certain securities collective institutions modified by EU Directive 23 July 2014
(l) Section R. 332-16 is replaced by the following provisions:
"Art. R. 332-16.-Assimilated securities and securities, the shares or shares of real estate or land companies must be registered or deposited with an authorized intermediary or registered in the accounts of the issuing agency, provided that the latter is located in a Member State of the European Union.
"The property acts of real estate assets, acts and securities devoting loans or receivables are retained in French territory. If the law of the country in which the asset is located does not permit it, a writing mentioning the company's rights to these assets and whose probative value is recognized by French legislation is retained in French territory.
"The deposit accounts referred to in the 13th of Article R. 332-2 shall be opened to a credit institution approved in a Member State. Their term must not exceed one year or their notice of withdrawal three months. The accounts must be denominated on behalf of the insurance company or branch established in France and may only be debited with the agreement of a director of the company or general agent of the branch or a person designated by them for that purpose. » ;
(m) In R. 332-17, the words: "in the sense ofArticle 29 of Act No. 83-1 of 3 January 1983 modified" are replaced by the words: "in the sense ofArticle L. 211-20 of the Monetary and Financial Code » ;
(n) Articles R. 332-18 and R. 332-33 and section III are repealed;
(o) Section R. 332-35 is replaced by the following provisions:
"Art. R. 332-35.-The amount of the difference between the amounts of mathematical provisions recorded in the balance sheet in accordance with Article L. 343-1 and the amount of mathematical provisions that would be required to register if the acquisition loads were not taken into account in the commitments of the insured as well as the calculation of the deferred acquisition costs must be justified at any time with the Authority for prudential control and resolution. The deferred acquisition costs are allowed in representation of technical provisions. » ;
(p) Section V is repealed;
(q) Articles R. 332-50 and R. 332-59 to R. 332-63 are repealed;
(r) Chapter II is supplemented by section 9 as follows:
“Section 9
"Accounts Specific to Assets of Auxiliary Allocation Accounts
"Art. R. 332-65.-For businesses referred to in section L. 310-3-2, the provisions of this chapter, including section R. 332-1-1 and sections R. 332-3 and R. 332-3-1, apply separately to each portfolio of securities and investments that are the subject of a separate accounting record, in accordance with section R. 342-1.
"Art. R. 332-66. -In the context of operations relating to an auxiliary accounting referred to in Article R. 342-1, the undertaking referred to in Article L. 310-3-2 shall not enter into contracts constituting financial instruments in the term of theArticle L. 211-1 of the monetary and financial code that in the cases and conditions set out in sections R. 332-45 to R. 332-58 of this Code and provided that these contracts have the sole purpose of the financial management of these same transactions, excluding any other operation of the insurance company. » ;
4° Chapter III is repealed;
5° In chapter IV:
(a) The second paragraph of Article R. 334-1 is deleted;
(b) In 2 of Article R. 334-3, the words "including the capitalization reserve" are deleted;
(c) Article R. 334-3:
(i) In 3 of I, the words "of profit or loss" are replaced by the words "of profit, surplus or loss";
(ii) In the 4th of I, after the words: "additional social" are inserted the words: "or for development funds";
(iii) At the end of the second paragraph of 1 of II, the words: "Control Authority" are replaced by the words: "Guidely Control and Resolution Authority";
(iv) After the 2nd of II, it is inserted a 3 as follows:
“3. Reservations made under articles L. 111-6 and L. 431-1 the code of mutuality, including the contribution paid by the mutual or union and not used by the federal guarantee system or the guarantee fund referred to in theArticle L. 431-1 of the mutuality code.
(v) 1 of 3 is thus written:
“1. Half of the unpaid portion of the social capital or of the remaining portion to be refunded from the borrowing for the settlement fund, as soon as the paid portion reaches 25% of that capital or fund, in competition, for insurance companies governed by this code, of 50% of the credit margin or of the minimum credit margin requirement, the lowest amount being retained, and, for mutual funds and »
(vi) In the 2nd of the III, after the words: "mutual insurance companies" are inserted the words: "or mutual unions governed by Book II of the code of mutuality" and after the words: "their societal societies" are inserted the words: "or their participating members and fees";
(vii) In a IV, the words: "or mutualist certificates" are deleted;
(viii) In the b of the IV, the words "or an investment company" are replaced by the words ", an investment company or a financial institution";
(ix) After the c of IV, it is inserted a d as follows:
"(d) Mutual or parity certificates issued and held directly by the insurance company. » ;
(x) The last paragraph of IV is deleted;
(xi) In V, the words: "of benefit or" are replaced by the words: "of profit, surplus or";
(d) Articles R. 334-2, R. 334-4, R. 334-6, R. 334-10, R. 334-12, R. 334-14, R. 334-16, R. 334-18, R. 334-20 are repealed;
(e) Article R. 334-5:
(i) The words: "companies referred to in 1° of Article L. 310-2" are replaced by the words: "Companies referred to in Article L. 310-3-2";
(ii) In the fourth paragraph of (a), the words "divided into two slices, respectively less than 61,300,000 euros. 18% of the first slice are added 16% of the second" are replaced by the words: "is multiplied by 18%";
(iii) In the fifth paragraph of (a), the words: "get by multiplying the sum of the two terms of the expected addition" are replaced by the words: "calculated by multiplying the amount obtained";
(iv) In the fourth paragraph of (b), the words: "divided into two slices, respectively less than 42,900,000 euros. A 26% of the first slice are added 23% of the second" are replaced by the words: " multiplied by 26%";
(v) In the fifth paragraph of (b), the words: "get by multiplying the sum of the two terms of the expected addition" are replaced by the words: "calculated by multiplying the amount obtained";
(vi) In the sixth paragraph of b, after the words: "at 18 of Article R. 321-1", the words are inserted: "of this code andarticle R. 211-2 of the mutuality code » ;
(f) Section R. 334-7 is replaced by the following provisions:
"Art. R. 334-7.-The corporate guarantee fund referred to in Article L. 310-3-2 approved to practice one or more of the branches mentioned in 1 to 18 of Articles R. 321-1 of this Code, R. 211-2 of the mutuality code and R. 931-2-1 of the social security code is equal to one third of the minimum solvency margin requirement defined in Article R. 334-5.
"This fund cannot be less than Euro2,500 000. However, it may not be less than EUR 3,700,000 for companies practicing all or part of the risks included in one of the branches mentioned in Articles R. 321-1 of this code and R. 211-2 of the mutuality code. For companies incorporated in the form of mutual insurance companies, as well as for their unions, for the mutuals and unions governed by Book II of the code of mutuality, and for the institutions of foresight and unions governed by Title 3 of Book 9 of the Social Security Code, the latter amounts are fixed to 1,900,000 and 2,800,000 euros respectively. When a company is approved to operate in multiple branches, only the branch to which the highest amount is calculated is considered for the calculation of the guarantee fund. » ;
(g) In R. 334-9, after the words: "at 14 and 15 of R. 321-1", the words are inserted: "of this code and thearticle R. 211-2 of the mutuality code » ;
(h) After the article R. 334-9, an article R. 334-9-1 is inserted as follows:
"Art. R. 334-9-1.-The provisions of Article R. 334-7 concerning the minimum amount of the guarantee fund are not applicable to mutual and unions governed by Book II of the mutuality code which simultaneously meet the following conditions:
“(a) Their statutes provide for the possibility of making contribution reminders or reductions of benefits. When the statutes of the mutual or union are amended according to the fourth paragraph of article R. 212-9 of the mutuality code, the participating member or the corporate body of the collective contract, in the month following the notification of the statutory amendments of the mutual or union, the right to terminate the membership newsletter(s) and the collective contract(s) signed. In this case, the faculty of termination open to the participating member and to the subscriber legal entity of the collective contract shall have restitution by the mutual or the union of the portions of contribution for the period for which the risks are no longer guaranteed;
“(b) The annual amount of contributions issued, including accessories and cancellations deducted does not exceed 5,000 000 euros;
"(c) They do not cover the risks of the branch referred to in 15 of article R. 211-2 of the mutuality code ;
"(d) When operating in the branches referred to in the 1,2,17,18 and 16 a of Article R. 211-2 of the mutuality code, at least half of their contributions is paid by their participating members or fees. » ;
(i) Article R. 334-11:
(i) In 3 of I, the words "of profit or loss" are replaced by the words "of profit, surplus or loss";
(ii) After the 3 of the I, it is inserted a 4 in this way:
“4. For mutuals and unions governed by Book II of the Mutual Code and foreseeance institutions and unions governed by Title 3 of Book 9 of the Social Security Code, the borrowing(s) for development funds. However, from half of the length of a loan, it is retained in the credit margin only for its progressively reduced value each year of a constant amount equal to double the total amount of that loan divided by the number of years of its duration. » ;
(iii) After the 2nd of the II, insert a 3 as follows:
“3. Reservations made under articles L. 111-6 and L. 431-1 the code of mutuality, including the contribution paid by the mutual or union and not used by the federal guarantee system or the guarantee fund referred to in theArticle L. 431-1 of the mutuality code.
(iv) 1 of the III is replaced by the following:
“1. Half of the unpaid portion of the capital or of the remaining portion to be refunded from the loan for the settlement fund, as soon as the paid portion reaches 25% of that capital or fund, as opposed to, for insurance companies governed by this code, 50% of the credit margin or the credit margin requirement, the lowest amount being retained and, for mutual funds and unions governed by » ;
(v) In 2 of the III, after the words: "active elements" are inserted the words: "and overstatement of liabilities";
(vi) 4 of III and the last paragraph of III are deleted;
(vii) In a IV, the words: "or mutualist certificates" are deleted;
(viii) In the b of the IV, the words "or an investment company" are replaced by the words ", an investment company or a financial institution";
(ix) After the c of IV, it is inserted a d as follows:
"(d) Mutual or parity certificates issued and held directly by the insurance company. » ;
(x) The last paragraph of IV is deleted;
(xi) In V, the words: "of profit or loss" are replaced by the words: "of profit, surplus or loss";
(j) Article R. 334-13:
(i) The words: "Companies referred to in the 1st of Article L. 310-2" are replaced by the words: "Companies referred to in Article L. 310-3-2";
(ii) At a, after the words: "Sections 20 and 21", the words are inserted: "as mentioned in Articles R. 321-1 of this Code, R. 211-2 of this Code code of mutuality and R. 931-2-1 Social Security Code » ;
(iii) To a, b and e, the words "additional insurance" are replaced by the words "additional insurance or guarantees";
(iv) In c, after the words: "Section 23", the words are inserted: "as mentioned in article R. 321-1 of this code";
(v) In the d, after the words: "Section 24", the words are inserted: " referred to in Articles R. 321-1 of this Code, R. 211-2 of this Code. code of mutuality and R. 931-2-1 Social Security Code » ;
(vi) After the d, a new paragraph is inserted:
"For the mutuals and unions governed by Book II of the Code of Mutuality, by derogation from the previous paragraph, the minimum margin requirement is equal to the result obtained by multiplying a number representing 4% of the sum of the sum of the only mathematical provision and management provision relating to direct insurance transactions and gross reinsurance acceptances by the report referred to in the first result defined in (a);
(vii) The first paragraph of the e is as follows:
"For branch 22 referred to in R. 321-1 of this code, R. 211-2 of code of mutuality and R. 931-2-1 Social Security Codeexcept for additional insurance or guarantees, for branch 24 referred to in R. 321-1 of this code, R. 211-2 of code of mutuality and R. 931-2-1 Social Security Codein respect of the capitalization transactions in units of account and for the branch 25 referred to in R. 321-1 of this code, R. 211-2 of the code of mutuality and R. 931-2-1 Social Security Codethe minimum margin requirement is equal: »;
(viii) The 3 of the e is replaced by the 3 and 4 as follows:
“3. When the mutuality or union governed by Book II of the mutuality code does not assume a risk of investment, and for contracts mentioned inarticle L. 222-2 of the mutuality code which provides that management costs are not fixed for a period of more than five years, to an amount equivalent to 25 per cent of the net management costs for these operations for the last fiscal year;
“4. When the company assumes a risk of mortality, the amount of the minimum margin requirement is obtained by adding to either of the results determined by application of the provisions of the three preceding paragraphs a number representing 0.3% of the under-risk capital, multiplied by the ratio existing, for the last fiscal year, between the amount of capital under-risk after reinsurance and the amount of capital under-risk of reinsurance, without the latter being able to be »
(ix) In the first paragraph of the f, after the words: "Section 26", the words are inserted: "Referenced to Articles R. 321-1 of this Code, R. 211-2 of this Code code of mutuality and R. 931-2-1 Social Security Code » ;
(x) After 2 of the f, two sub-items are inserted:
"For mutuals or unions governed by Book II of the code of mutuality, by derogation from the preceding paragraphs of the f, the minimum margin requirement is equal to a number representing 4% of the special technical provision referred to in Article R. 222-8 of the code of mutuality, within the limits of the theoretical mathematical provision referred to in Article R. 222-16 of the same code.
"For pension institutions and unions governed by title 3 of Book 9 of the Social Security Code, by derogation from the preceding paragraphs of the f, the minimum margin requirement is equal to a number representing 4% of the special technical provision referred to in Article R. 932-4-4 of the Social Security Code, within the limits of the theoretical mathematical provision referred to in Article R. 932-4-25 of the same Code. » ;
(k) Section R. 334-15 is replaced by the following provisions:
"Art. R. 334-15.-The insurance fund of the companies mentioned in article L. 310-3-2 approved to practice one or more of the branches mentioned in articles 20 to 28 R. 321-1 of this code, R. 211-2 of the code of mutuality and R. 931-2-1 of the social security code is equal to one third of the minimum requirement of credits defined in article R. 334-13
"Beyond these thresholds or half of the fund, if this half is greater than these thresholds, the fund is constituted by the elements referred to in 1,2 and 3 of I, 1 of II and 1 of III of Article R. 334-11. » ;
(l) After the article R. 334-15, an article R. 334-15-1 is inserted as follows:
"Art. R. 334-15-1.-The provisions of Article R. 334-15 concerning the minimum amount of the guarantee fund are not applicable to mutual funds and unions governed by Book II Code of mutuality which:
“(a) Either exclusively guarantee death benefits when the capital amount does not exceed 150 per cent of the monthly social security ceiling or when such benefits are served in kind;
“(b) Either meet the following conditions cumulatively:
"-their statutes provide for the possibility of recalls of contributions or reductions of benefits. When the statutes of the mutual or union are amended according to the fourth paragraph of article R. 212-9 of the mutuality code, the participating member or the corporate body of the collective contract, in the month following the notification of the statutory amendments of the mutual or union, the right to terminate the membership newsletter(s) and the collective contract(s) signed. In this case, the faculty of termination open to the participating member and to the subscriber legal entity of the collective contract shall have restitution by the mutual or the union of the portions of contribution for the period for which the risks are no longer guaranteed;
"-the amount of contributions issued, including accessories and cancellations deducted, does not exceed €5,000 annually. » ;
(m) At the c of article R. 334-17 and article R. 334-19, after all the occurrences of the words: "department damage", are inserted the words: "or non-life for the mutuals and unions of book II of the code of mutuality and for the institutions of foresight and unions governed by title 3 of book 9 of the code of social security";
(n) The d of Article R. 334-17 is deleted;
(o) The title of section 4 is replaced by the following title:
“Section 4
"The margin of solvency of joint ventures carrying out both the operations mentioned in 1° and 2° of Article L. 310-1"
(p) Section R. 334-19 is replaced by the following provisions:
"Art. R. 334-19.-The minimum requirement for credit margins of enterprises referred to in Article L. 310-3-2 and aggregates to practice simultaneously at least two or more branches mentioned either in 1 and 2, or in 20 to 26 of articles R. 321-1 of this code, R. 211-2 of the code of mutuality and R. 931-2-1 of the code of social security is equal to the sum of the two elements
"The minimum amount of the damage or non-life fraction for the mutuals and unions governed by Book II of the code of mutuality and for the institutions of foresight and unions governed by Title 3 of Book 9 of the code of social security is calculated under the conditions defined in Article R. 334-5, on the basis of the premiums and claims related to direct affairs and acceptances under branches 1 and 2 defined in Articles R-2.
"The minimum amount of the life fraction is calculated under the conditions set out in section R. 334-13, based on technical provisions, at-risk capital, premiums or contributions, claims and assets related to direct affairs and acceptances under sections 20 to 26 of sections R. 321-1 of this code, R. 211-2 of the mutuality code and R. 931-2-1 of the Social Security Code. » ;
(q) In article R. 334-21 in the first paragraph, the words: "at the 1st of article L. 310-2" are replaced by the words: "at article L. 310-3-2" and the last paragraph is deleted;
(r) Sections 5.6.9 and 10 are repealed;
6° Chapter V is replaced by the following:
“Chapter V
"Safety measures for insurance companies
"Art. R. 335-1.-When the Autorité de contrôle prudentiel et de résolution requires an insurance company a recovery strategy in accordance with theArticle L. 612-32 of the monetary and financial codein particular, for the next three social exercises, a detailed description of the following elements must be accompanied by supporting documentation:
« 1° A forecast estimate of management costs, including current overhead costs and commissions;
« 2° A plan detailing revenue and expenditure forecasts, both for direct business and for acceptances and reinsurance transfers;
« 3° A forecast balance;
« 4° An estimate of the financial resources to be used to cover commitments and the credit margin requirement;
« 5° The general reinsurance policy.
"Art. R. 335-2.-I.-In the light of the recovery strategy referred to in section R. 335-1 or failing to communicate this program within one month after the application, the Autorité de contrôle prudentiel et de résolution may require an insurance company to have an enhanced credit margin, greater than the minimum margin requirement mentioned, as the case may be, in section R. 334-5, However, the total level of solvency required may not exceed double the minimum margin requirement referred to in R. 334-5 or R. 334-13. The Authority may also implement the measures referred to in article R. 334-2, under the conditions provided for in that article.
"II.-The Autorité de contrôle prudentiel et de résolution may limit the reduction of the solvency margin provided for in the fourth paragraphs of (a) and (b) of Articles R. 334-5, R. 334-13 or R. 334-19 where:
« 1° The content or quality of the reinsurance program has undergone significant changes since the last fiscal year;
« 2° Or where the reinsurance program does not provide for any risk transfer or insignificant transfer.
"III.-When it finds that the constituent elements of the solvency margin of an insurance company have experienced a decrease of not less than 33% in the last fiscal year in relation to the average of these elements of the margin observed in the four fiscal years prior to the last fiscal year, or when it considers that the results of the exigibility test referred to in section R. 336-7 are a prudential risk,
« 1° Request the company to deduct elements of the solvency margin all or part of the amount of the overall net latent less-value found on the investments referred to in R. 343-9;
« 2° Request the company to deduct all or part of the amount of the overall net impairment recorded on the assets referred to in section R. 343-10 and not provided by the provision for risk of exigibility;
« 3° Implement appropriately a combination of previous measures.
"Art. R. 335-3.-When it considers that the results of the test of due diligence referred to in Article R. 336-7 indicate a risk of solvency, the Autorité de contrôle prudentiel et de résolution may deduct from the constituent elements of the margin the deferral of charge constituted under Article R. 343-6.
"Art. R. 335-4.-Where the margin of solvency of a business referred to in Article L. 310-3-2 does not reach the prescribed amount, the Authority for prudential control and resolution, without prejudice to the implementation of the powers it has under sections 6 and 7 of Chapter II of Title I of Book VI of the monetary and financial code, requires a recovery plan, which must be submitted within its month of approval.
"The Autorité de contrôle prudentiel et de résolution designates a controller who must be kept continuously informed by the company of the development of the recovery plan. The company reports on the implementation of the decisions and measures contained in the plan to the controller, which ensures its implementation.
"Art. R. 335-5.-Where the margin of solvency of a business referred to in Article L. 310-3-2 does not reach the guarantee fund, or if the fund is not constituted regulatoryly, the Autorité de contrôle prudentiel et de résolution, without prejudice to the implementation of the powers it has under sections 6 and 7 of Chapter II of the financial title 1st of Book VI of the monetary code
"The Autorité de contrôle prudentiel et de résolution designates a controller who must be kept continuously informed by the company of the development of the short-term funding plan. The company reports on the implementation of the decisions and measures contained in the plan to the controller, which ensures its implementation.
"Art. R. 335-6.-When the Autorité de contrôle prudentiel et de résolution suspends, restricts or temporarily prohibits the free disposition of all or part of the assets of an insurance company, pursuant to theArticle L. 612-33 of the monetary and financial code, it may also have the mortgage referred to in sections L. 327-3 of this code, L. 212-24 of the code of mutuality and L. 931-23 Social Security Code.
7° Chapter VI:
(a) The title of the chapter is replaced by the following title:
“Chapter VI
"Internal control and states to be produced by companies";
(b) Section R. 336-1 is replaced by the following provisions:
"Art. R. 336-1.-The companies referred to in Article L. 310-3-2 are required to establish a permanent internal control device.
"The Board of Directors or the Supervisory Board approves, at least once a year, a report on internal control, which is forwarded to the Autorité de contrôle prudentiel et de résolution.
"The first part of this report details the conditions for the preparation and organization of the work of the Board of Directors or the Supervisory Board and, where applicable, the limitations made by the Board of Directors on the authority of the Director General in the performance of its duties.
"However, companies whose financial titles are admitted to negotiations on a regulated market are not required to provide these elements when they transmit to the Autorité de contrôle prudentiel et de résolution the report mentioned, as appropriate, in article L. 225-37 or to the Autorité de contrôle prudentiel et de résolutionArticle L. 225-68 of the Commercial Code.
"The second part of this report details:
“(a) The objectives, methodology, position and overall organization of internal control within the company, the measures taken to ensure the independence and effectiveness of internal control, including the competence and experience of the implementing teams, as well as the follow-up to the recommendations of individuals or bodies responsible for internal control;
“(b) Procedures to verify, on the one hand, that the activities of the company are carried out according to the policies and strategies established by the governing bodies, on the other hand, the compliance of insurance or reinsurance transactions with the legislative and regulatory provisions;
"(c) Methods used to measure, evaluate and control investments, in particular the assessment of the quality of assets and asset-liability management, the monitoring of future financial instrument transactions and the appreciation of the performance and margins of the financial intermediaries used;
"(d) The internal investment management control system, which includes the internal distribution of responsibilities within the staff, the persons responsible for carrying out transactions that cannot also be responsible for their follow-up, delegation of authority, dissemination of information, internal control or audit procedures;
“e) Procedures and arrangements for identifying, assessing, managing and controlling the risks associated with the company's commitments and holding sufficient capital for these risks, as well as the methods used to verify compliance with practices related to the acceptance and pricing of risk, reinsurance and provisioning of commitments regulated to the company's policy in these areas, as defined in the reports referred to in Article L-5 336-1;
“(f) The measures taken to ensure the monitoring of claims management, the monitoring of subsidiaries, the control of outsourced activities and the marketing of the company's products and the risks that could result. » ;
(c) The last paragraph of Article R. 336-5 is deleted;
(d) After R. 336-5, articles R. 366-6, R. 366-7 and R. 336-8 are inserted as follows:
"Art. R. 336-6.-Events must transmit annually to the Autorité de contrôle prudentiel et de résolution, in accordance with the terms defined by the latter, the annual detailed account of their transactions and any statements, tables or documents to enable them to control their financial situation, the execution of their operations, the encumbering of premiums or contributions, the settlement of claims, the valuation and, for the companies mentioned in 1° and 2°.article L. 211-8 of the mutuality code and to theArticle L. 931-4 of the Social Security Codethe representation of provisions and reserves.
"The information referred to in the first paragraph shall be approved by the Director General or the Director General or, in the case of mutual unions governed by the code of mutualityby the board of directors.
"Companies must communicate to the Autorité de contrôle prudentiel et de résolution, at its request, any information and documents to assess the value of the immovables, loans, titles or receivables contained in their balance sheet in any way and in any form as well as any other information on the transactions that the Autorité considers necessary for the exercise of its control.
"Art. R. 336-7.-The companies referred to in Article L. 310-3-2 conduct each year a test of exigibility to assess their ability to meet their commitments with respect to insured persons and businesses re-insured under deteriorated market conditions. The terms of this test are fixed by the Autorité de contrôle prudentiel et de résolution.
"Art. R. 336-8.-As long as the statements, tables or documents referred to in section R. 336-6 are based on accounting data, the balances of the accounts used by the company must be connected directly or by consolidation. »
Title IV of Book III of the same code is thus modified:
1° Articles R. 341-1 and R. 341-5 are repealed;
2° Section R. 341-2 is replaced by the following provisions:
"Art. R. 341-2.- Subject to the provisions of this Code and the modifications made necessary by the accounting requirements of the Authority of the accounting standards applicable to them, the enterprises referred to in Article L. 341-1 shall be subject to the provisions of the Articles R. 123-172 to R. 123-180, R. 123-184 to R. 123-189, R. 123-191, R. 123-198 and R. 123-199 Commercial code. » ;
3° Section R. 341-3 is replaced by the following provisions:
"Art. R. 341-3.-An order by the Minister responsible for the economy may, as appropriate, prescribe specific procedures for the extra-comptable monitoring of investments, contracts, claims and reinsurance, co-insurance and co-reinsurance transactions. » ;
4° Section R. 341-4 is replaced by the following provisions:
"Art. R. 341-4.- Except as authorized by the Supervisory Control Authority pursuant to section L. 341-4, the accounting year begins on January 1, and ends on December 31 of each year. Exceptionally, the first accounting exercise of French companies that begin operations in a calendar year may be closed at the end of the following year. » ;
5° Section R. 341-7 is replaced by the following:
"Art. R. 341-7.-The foreign exchange transactions and the relevant accounting documents are defined and held in each of the currencies used, according to the accounting requirements of the Authority of Accounting Standards. However, companies whose foreign currency transactions are not significant can hold their accounting records only in euros.
"Annual accounts are prepared in euros. For the preparation of annual accounts, foreign exchange transactions are converted to euros based on the exchange rates found at the date of the closing of accounts or, if not, at the nearest previous date. » ;
6° Section R. 341-8 is replaced by the following provisions:
"Art. R. 341-8.-Unless it publishes them under section L. 341-3, the company shall make available the annual accounts, the management report, the annual accounts report of the auditors and, where applicable, the consolidated or combined accounts, the group management report and the report of the auditors on the consolidated or combined accounts to any person who makes the request, subject to payment
"The Autorité de contrôle prudentiel et de résolution may request that the annual accounts be communicated to it before being submitted to the General Assembly or, where appropriate, to the Joint Commission for the institutions of foresight and unions governed by title 3 of Book 9 of the Social Security Code, from the date on which they are to be held at the disposal of the auditors. » ;
7° After article R. 341-8, an article R. 341-9 is inserted as follows:
"Art. R. 341-9.-Any enterprise referred to in Article L. 310-1 or 1° III of Article L. 310-1-1 is required to establish procedures for the development and verification of financial and accounting information required for the preparation of annual accounts. These procedures are described in a report submitted annually to the approval of the Board of Directors or Supervisory Board and transmitted to the Authority for prudential control and resolution.
"For companies referred to in Article L. 310-3-2, the mutuals and unions referred to in Article L. 310-3-2article L. 211-11 of the mutuality code and the institutions of foresight and unions mentioned in theArticle L. 931-6-1 of the Social Security Codethe report referred to in the first paragraph may be included in the report referred to in Article R. 336-1 of this Code. » ;
8° The title of Chapter II is replaced by the following title:
“Chapter II
"Special accounting provisions";
9° In the first paragraph of article R. 342-1, after the words: "of article L. 441-8", the words are inserted: "from insurance code, fromarticle L. 222-1 of the mutuality code or ofArticle L. 932-24 of the Social Security Code » ;
10° Articles R. 342-2 and R. 342-8 are repealed;
11° In article R. 342-9, after the words: "benefits corresponding to mathematical provisions" are inserted the words: "in the sense defined in article R. 343-3,"
12° Chapter II is supplemented by section 7 as follows:
“Section 7
“Special rules on supplementary occupational pension contracts
"Art. R. 342-10.-The provisions of this section apply to each accounting referred to in section L. 143-4, to the transactions referred to in section L. 143-4article L. 222-6 of the mutuality code and to theArticle L. 932-43 of the Social Security Code.
"Art. R. 342-11.-Reported to the total amount of commitments under the sub-assignment accounting, all values issued, loans obtained or guaranteed and deposits placed with the organizations of the same group within the meaning of Article L. 356-1 and admitted in representation of these regulated commitments may not exceed 10%.
"Art. R. 342-12.- Insurance organizations may, up to 30% of their accounting commitments referred to in Article L. 143-4 of this Code orarticle L. 222-6 of the mutuality code or to theArticle L. 932-43 of the Social Security Code If applicable, do not cover these by congruent assets.
"Art. R. 342-13.-Technical provisions for the operations of the insurance organization under contracts or guarantees under Article L. 143-1 of this Code, of thearticle L. 222-3 of the mutuality code and ofArticle L. 932-40 of the Social Security Code are those mentioned in 1°, 2°, 3°, 4°, 6° and 7° of Article R. 343-3 of this Code and, for insurance companies governed by this Code only, those mentioned in 9° and 10° of Article R. 343-3.
"The provisions mentioned in the preceding paragraph, with the exception of those mentioned in the 4th of section R. 343-3, as well as the assets corresponding to the previously cited transactions, are listed in the account referred to in section R. 342-1.
"Art. R. 342-14.-The operation referred to in Article L. 143-8 shall, subject to the application of the provisions of Article R. 342-4, be subject to the following rules:
« 1° For contracts under Article L. 441-1 of this Code,article L. 222-1 of the mutuality code, fromArticle L. 932-24 of the Social Security Codesection L. 134-1 of this code or b of 1 of Article 163 quatervicies of the General Tax Code, the submission in chapter III of Book I title IV does not result in a change in the allocation of assets representing the commitments entered in the auxiliary accounting, which, as of the publication of the authorization referred to in Article L. 143-8, of the second paragraph of Article L. 143-4 of this Code or second paragraph of article L. 222-6 of the mutuality code or second paragraph of Article L. 932-43 of the Social Security Code ;
« 2° For contracts other than those mentioned in the previous paragraph providing that the commitments are represented by assets subject to separate identification to meet contractual requirements, the assets and provisions subject to such separate identification are recorded in the account referred to in Article R. 342-1 (b) and fall under the first paragraph of Article L. 143-4 of this Code or of first paragraph of Article L. 222-6 of the mutuality code or first paragraph of Article L. 932-43 of the Social Security Code ;
« 3° For other contracts, are registered in the account referred to in Article R. 342-1 b and subject to the first paragraph of Article L. 143-4 of this Code or first paragraph of Article L. 222-6 of the mutuality code or first paragraph of Article L. 932-43 of the Social Security Code :
“(a) Assets assigned to the representation of mathematical provisions relating to commitments expressed in units of account of the contract, assessed according to the provisions of article R. 343-13, as well as these provisions;
“(b) The provisions mentioned in the 1st of Article R. 343-3, other than those mentioned in the a relating to the commitments of this contract, gross reinsurance, as well as the provisions mentioned in the 7th of the same article;
"(c) Under the technical provisions referred to in 2° or 3° of Article R. 343-3, the sum, when positive and within the limits of these provisions, respectively of the annual allocations to these provisions, net of times, taken into account within the last ten years and intervened since the subscription of the contract, weighted by the ratio calculated at each end of exercise between the mathematical provisions of the contract and the mathematical provisions constituted under 1
"(d) In the event that the reserve for risk of exigibility for transactions not falling within the 1st of this section of the assets whose value, determined in accordance with sections R. 343-9 and R. 343-10, is equal to the sum of the provisions listed under b and c. In addition, the ratio between the value of these assets and the value of the total assets of the insurance company with the exception of those mentioned in 1°, 2° and 3° of this article, both assessed in accordance with articles R. 343-11 and R. 343-12, must be at least equal to the ratio between the value of these assets and the value of the total assets of the insurance company not covering the commitments mentioned in 1° to
“e) In the event that the provision for risk of liability for transactions not falling within the scope of this section is made, assets whose value, determined in accordance with sections R. 343-9 and R. 343-10, is equal to the sum of the technical provisions listed under b and c. In addition, the ratio between the value of these assets and the value of the total assets of the insurance company with the exception of those mentioned in 1°, 2° and 3° of this article, both assessed in accordance with articles R. 343-11 and R. 343-12, must be at least equal to the ratio between the value of these assets and the value of the total assets of the insurance company not covering the commitments mentioned in 1°, Pursuant to Article R. 331-5-1 applied to the auxiliary accounting referred to in the first paragraph of Article L. 143-4 of this Code or to the first paragraph of Article L. 222-6 of the mutuality code or first paragraph of Article L. 932-43 of the Social Security Code, the insurance agency shall, if any, make up within that accounting the provision referred to in 6° of section R. 343-3. The organization shall calculate and make, as appropriate as a result of this transaction, the resumption of the provision referred to in 6° of section R. 343-3 constituted for transactions not falling within 1° of this section or articles L. 143-4 of this code, L. 222-6 of this section code of mutuality or L. 932-43 Social Security Code.
"For registrations in account referred to in the preceding paragraphs, calculations are made in relation to the date of authorization referred to in Article L. 143-8. Assets are registered without modification of their specified value in accordance with the provisions of Articles R. 343-9 and R. 343-10 in respect of commitments expressed in euros, and in accordance with the provisions of Article R. 343-13 and R. 343-13 in respect of commitments expressed in units of account. However, as a result of the establishment of the provision referred to in 6° of Article R. 343-3 in accordance with this e, assets are assigned to the auxiliary accounting in accordance with Article R. 342-4. » ;
13° After chapter II, a chapter III is inserted as follows:
“Chapter III
"Special accounting plans and assessments for insurance
“Section 1
“Technical commitments and provisions
"Subsection 1
“General provisions
"Art. R. 343-1.-The companies referred to in Article L. 310-1 or 1° of Article L. 310-1-1 shall be able to justify the assessment of the following:
« 1° The technical provisions sufficient for the full settlement of their commitments to insured persons, subscribers and beneficiaries of contracts and rescheduled enterprises;
« 2° Liabilities for other privileged receivables;
« 3° Security deposits of agents, insured persons and third parties, if applicable;
« 4° A loan amortization reserve for insurance companies under this code, mutual funds and unions under this code 1° of Article L. 111-1 of the mutuality code and the institutions of foresight and unions involved in the operations referred to in a, b and c of Article L. 931-1 of the Social Security Code ;
« 5° An allowance for employees and agents to meet the company's commitments to its staff and employees.
"The technical provisions mentioned in 1° are assessed, without deduction of reinsurance transfers to registered or non-registered companies.
"The elements mentioned in 1° to 5° are, for the purposes of the provisions set out in articles L. 134-3, L. 143-5, L. 327-3, R. 134-14, R. 342-3, R. 344-1, R. 441-7 and R. 441-21, of the regulated commitments.
"Art. R. 343-2.-When the guarantees of a contract are expressed in a specified currency, the commitments of the insurance company referred to in Article R. 343-1 are denominated in that currency.
"When the guarantees of a contract are not expressed in a specified currency, the commitments of an insurance company are denominated in the currency of the country where the risk is located. However, this company may choose to release its commitments in the currency in which the premium is expressed if, as soon as the contract is signed, it seems likely that a claim will be paid, not in the currency of the country of risk situation, but in the currency in which the premium was denominated.
"If a claim has been declared to the insurer and if the benefits are payable in a specified currency other than that resulting from the application of the preceding provisions, the insurance company's commitments are denominated in the currency in which the compensation payable by that undertaking has been determined by a court decision or by agreement between the insurance company and the insured.
"When a claim is assessed in a known currency in advance of the insurance company but different from the one resulting from the application of the provisions of the preceding paragraphs, insurance companies may release their commitments in that currency.
"Art. R. 343-2-1.-The provisions of this chapter apply in the French Southern and Antarctic Lands and in the Wallis and Futuna Islands.
"Subsection 2
"Technical provisions for life insurance, nuptiality-natal insurance and capitalization operations
"Art. R. 343-3. -The technical provisions for life insurance, nuptiality-natal and capitalization operations are as follows:
« 1° Mathematical provision: a difference between the current values of the commitments made by the insurer and the insured. For contracts involving a survival or mortality table, the amounts of mathematical provisions must include an estimate of future management costs that will be borne by the insurer during the coverage period beyond the duration of payment of premiums or the date of collection of the constituent capital; the estimate of these costs is equal to the amount of the management loads provided under the tariff conditions of the premium or the capital constituting and intended to cover the management costs;
« 2° Allowance for participation in profits: amount of interest to the benefits awarded to the beneficiaries of contracts when these benefits are not payable immediately after the liquidation of the year that produced them;
« 3° Capitalization reserve: a reserve intended to address the depreciation of the values included in the company's assets and the reduction of their income;
« 4° Provision of management: provision for future management costs for contracts not otherwise covered;
« 5° Provision for financial hazards: provision to offset the decline in asset performance;
« 6° Provision for risk of exigibility: provision to meet commitments in the case of loss of value of all assets referred to in R. 343-10. The provision to be made is assessed under the conditions defined in Article R. 343-5;
« 7° Provision for deferred acquisition costs: provision to cover expenses resulting from the deferral of the recognized acquisition costs;
« 8° Provision for equalization: provision to deal with damage fluctuations associated with group insurance transactions against death risk;
« 9° Provision of diversification: for commitments under Article L. 134-1, a provision intended to absorb the fluctuations of the assets assigned to these commitments and on which the subscribers or members hold individualized rights in the form of shares. This provision is abundant by all or part of the premiums paid by subscribers or subscribers and by the share of the results of the corresponding auxiliary assignment accounting that is not affected in the form of a mathematical provision or a collective provision of deferred diversification. It may also be plentiful by the resumption of the deferred collective diversification provision. It is reduced by imputation of losses, by charge of costs, by debit of benefits served and by conversion of the shares of the subscribers or adherents to a mathematical provision;
"10° Deferred collective provision of diversification: for commitments under section L. 134-1, provision for the smoothing of the redemption value of contracts. This provision may be abundant, within the limits and conditions defined by order of the Minister responsible for the economy, by the share of the results that are not affected in the form of a mathematical provision or a provision for diversification. This provision is resumed and provides the same amount for the diversification provision, under the conditions provided by the Minister responsible for the economy.
"A commitment can only be provided under one of the categories referred to in this section.
" Subject to the provisions of this Code relating to the assessment of the provisions referred to in paragraphs 1°, 2°, 6°, 9° and 10°, the provisions shall be assessed according to the accounting requirements of the Authority of Accounting Standards.
"Art. R. 343-4.-The technical provisions referred to in 1° of Article R. 343-1, corresponding to the operations referred to in Articles L. 143-1 of this Code, L. 222-3 of code of mutuality or L. 932-40 Social Security Code, are evaluated annually by an actuary and certified either by the auditor(s) of the insurance company within the framework of a mission distinct from the general mission of the auditors carried out in this insurance company, or by another actuary, independent of the insurance company and approved for this purpose by one of the actuary associations recognized by the Autorité de contrôle prudentiel et de résolution. The actuary or auditor(s) shall verify that the provisions of this Code are applicable to the provisions of this Code, that they are constituted in a sufficiently prudent manner, taking into account, where appropriate, an adequate margin for the unfavourable deviations, and that the methods and basis for calculating these technical provisions remain generally constant from one fiscal year to another. However, a change in these methods may be justified, in accordance with the provisions of this Code, by a change in the legal, demographic or economic data on which these assumptions are based.
"Art. R. 343-5.-The provision for risk of exigibility is made when the investments referred to in section R. 343-10, with the exception of the depreciable values that the insurance company has the capacity and intention to hold until maturity, are in a state of overall net less-value situation. An overall net decrease in value is found when the net book value of these investments is greater than the overall value of these investments as follows:
“(a) For listed securities and listed securities referred to in a of Article R. 343-11, the retained value is the average price calculated on the last 30 days before the day of the inventory or, if not, the last class listed before that date;
“(b) For shares of variable capital investment companies and the share of mutual funds mentioned in c of section R. 343-11, the value retained is the average of the redemption prices published in the last 30 days before the day of the inventory or, if not, the last redemption price published before that date;
"(c) For other assets, their value is assessed according to the rules set out in section R. 343-11.
"The annual allowance for the risk of liability for the fiscal year is equal to one-third of the total amount of the overall net latent less-value recorded on the investments referred to in the first paragraph, without the allocation being able to result in the total amount of the balance sheet amount for the year exceeding the overall net less-value recorded on these investments.
"For the calculations mentioned in the preceding paragraphs, the values referred to in (a) (b) and (c) take into account the most and lesser latent financial instruments transactions having as the underlying assets mentioned in the first paragraph. Latent impairments are taken into account at the level of the party exceeding the value of the securities or species given as collateral.
"Art. R. 343-6.-The charge consisting of the provision for the risk of exigibility referred to in section R. 343-5 may be spread under conditions specified by order of the Minister responsible for the economy. However, the deferral of charge as a result of this spreading may not lead to the total charge for the provision of the overall latent latent latent less-value referred to in section R. 343-5 for a given fiscal year being borne over more than eight consecutive years, beginning with the year in which this overall latent less-value was found.
"When an allowance for risk of exigibility is incorporated in an auxiliary duty accounting established under this code, the carry-over is recorded in the company's accounts and does not affect this auxiliary accounting.
"Subsection 3
"Technical Provisions of Other Insurance Operations
"Art. R. 343-7.-Technical provisions for other insurance transactions are as follows:
« 1° Mathematic provision of rents: current value of the company's commitments with respect to rents and annuities paid to it;
« 2° Provision for unacquired premiums: a provision to note, for all existing contracts, the share of the premiums issued and the remaining premiums to be issued for the period between the date of the inventory and the date of the next premium maturity or, if not, the term of the contract;
« 3° Provision for ongoing risks: provision to cover, for all existing contracts, the costs of claims and contract costs, for the period between the date of the inventory and the date of the first premium maturity that may result in the revision of the premium by the insurer or, if not, between the date of the inventory and the term of the contract, on the part of that cost that is not covered by
« 4° Provision for claims to be paid: Estimated value of expenses in principal and in costs, both internal and external, necessary for the settlement of all claims that occurred and not paid, including the capital of annuities not yet paid to the company. For the ten-year construction insurance guarantees, the total amount of claims to be paid in respect of damages may not be less than the sum of the total cost of claims that have been shown up to the inventory date and an estimate of the cost of undemonstrated claims that should occur by the expiry of the ten-year limitation period;
« 5° Increasing risk provision: a provision that may be required for health and disability insurance transactions and is equal to the difference between the current values of the commitments made by the insurer and the insured;
"6° Provision for equalization:
“(a) Provision to meet the exceptional costs associated with operations that ensure the risks of natural elements, atomic risk, the risks of civil liability caused by pollution, space risks, the risks associated with air transport and the risks associated with attacks and terrorism, and assessed under the conditions established by theArticle 2 of Act No. 74-1114 of 27 December 1974, by Decree No. 75-768 of 13 August 1975, Decree No. 86-741 of 14 May 1986 and theArticle 39 quinquies G of the General Tax Code ;
“(b) Provision intended to offset in credit insurance the possible technical loss occurring at the end of the fiscal year, with the exception of export credit insurance operatio ns for the account and with the State guarantee;
"(c) Provision to deal with damage fluctuations associated with group insurance operations against the risk of bodily harm;
« 7° Provision for risk of exigibility: provision to meet commitments in the case of loss of value of all assets referred to in R. 343-10. The provision to be made is assessed under the conditions set out in section R. 343-5.
" Subject to the provisions of this Code for the valuation of the provisions referred to in 4°, 6° and 7°, the provisions shall be assessed according to the accounting requirements of the Authority of Accounting Standards.
"Subsection 4
“Technical provisions of reinsurance operations
"Art. R. 343-8.-The technical provisions for accepted reinsurance operations are as follows:
« 1° Mathematical provision: the difference between the current values of the commitments made by the reinsurer and the reinsured companies;
« 2° Mathematic provision of rents: current value of the company's commitments with respect to rents and annuities paid to it;
« 3° Provision for deferred acquisition costs: provision to cover expenses resulting from the deferral of acquisition costs;
« 4° Provision for non-acquired premiums: fraction of premiums that correspond to the remaining term for a contract or package of contracts after the closing of the year in question and until the end of the warranty;
« 5° Provision for claims to be paid: Estimated value of expenses in principal and in costs, both internal and external, necessary for the settlement of all claims that occurred and not paid, including the capital of annuities not yet paid to the company;
« 6° Provision for increasing risks: provision that may be required for reinsurance operations against the risks of illness and disability and equal to the difference in the current values of the commitments made by the reinsurer and the insurer respectively;
"7° Provision for profit participation:
“(a) Amount at the expense of the undertaking that reinsurance in respect of the share of profits attributed by the reinsured company to the beneficiaries of contracts where such profits are not payable immediately after the liquidation of the year that produced them;
“(b) Amount at the expense of the company that reassures the profit corresponding to the contract that binds it to the re-assigned undertaking;
« 8° Capitalization reserve: a reserve intended to address the depreciation of the values included in the company's assets and the reduction of their income;
« 9° Provision of management: to cover future management costs for contracts not otherwise covered;
"10° Provision for risk of exigibility: provision to meet commitments in the case of loss of value of all assets referred to in R. 343-10. The provision to be made is assessed under the conditions defined in Article R. 343-5;
"11° Provision for ongoing risks: provisions made in addition to the provision for unacquired premiums to cover the risks to be incurred by the reinsurance company after the fiscal year closes, in such a way as to be able to meet all claims for compensation and any costs related to the current guarantees exceeding the amount of unacquired premiums and the remaining premiums to be paid net of outstanding premiums, as to be cancelled,
"12° Provision for equalization:
“(a) Provision to deal with exceptional charges relating to operations guaranteeing the risks of natural elements, atomic risk, the risks of civil liability caused by pollution, space risks, the risks associated with air transport, and the risks associated with attacks and terrorism, and assessed under the conditions set out in article 2 of Act No. 74 1114 of 27 December 1974, by Decree No. 75 768 of 13 August 1975, Decree No.Article 39 quinquies G of the General Tax Code ;
“(b) Provision intended to offset in credit insurance the possible technical loss occurring at the end of the fiscal year, excluding export credit insurance transactions on behalf of and with the State guarantee;
"(c) Provision to deal with damage fluctuations associated with group reinsurance operations against the risk of death or bodily harm and group insurance transactions against death risk;
"13° Provisions justified by the specificities of contracts when issued outside the European Union.
" Subject to the provisions of this Code for the valuation of the provisions referred to in 1°, 5°, 10° and 12°, the provisions shall be assessed according to the accounting requirements of the Authority of Accounting Standards.
“Section 2
"Estimating Asset Elements
"Art. R. 343-9.-The depreciable values listed in 1°, 2°, 2° bis and 2° ter of Article R. 332-2, other than the bonds and shares indexed the shares of common debt and the participatory securities are entered at their purchase price excluding interest accrued on the date of acquisition. The terms and conditions for determining this purchase price, the depreciation, the residual duration of the securities, the difference between their purchase price and their refund price, and the depreciation terms to be found in the inventory, when it is necessary to consider that the debtor will not be able to meet its commitments, either for the payment of interest or for the reimbursement of the principal, are defined in a regulation of the Autorité.
"This section also applies to bonds indexed on the general level of prices of a country or a set of countries whose currency is that in which these obligations are denominated, with a guarantee of au pairs refund. These obligations are either issued by a private legal entity with its head office in the territory of a Member State of the Organisation for Economic Co-operation and Development and negotiated on a recognized market, or issued or guaranteed by a State, body or public authority referred to in 1° of the A of Article R. 332-2, or those whose debtor is a national public institution of one of the Member States of the European Union.
"By derogation from the provisions of the preceding paragraphs, convertible bonds in shares, when they present to the purchase a negative actuarial rate, that rate being calculated without taking into account the year of the option, may be recorded in accordance with section R. 343-10.
"Art. R. 343-10.-A with the exception of the values listed in accordance with Article R. 343-9, the investments are recorded on the balance sheet on the basis of the purchase or return price, excluding interest accrued if applicable. The terms and conditions for determining the purchase or return price as well as those relating to the determination of depreciations, which are found only when they are sustainable, are defined in a regulation of the Autorité des normes comptables.
"Art. R. 343-11.-The values listed in section R. 332-2 and other financial and real estate investments are subject to, for the purpose of, inter alia, the calculation set out in the first paragraph of section R. 344-1, of an assessment on the basis of their realization value, under the following conditions:
“(a) Listed securities and listed securities of any kind are retained for the last listed course on the day of the inventory;
“(b) Non-listed securities and loans are retained for their true value corresponding to the price that would be obtained under normal market conditions and according to their usefulness to the company;
"(c) The shares of variable capital investment companies and the shares of mutual funds are retained for the last purchase price published on the day of the inventory;
"(d) Except in the case where another value arises from an expertise carried out under the provisions of Article L. 341-4, the value of realisation of immovables and shares or shares of immovable or immovable companies not listed on the basis of a stock exchange of values of a Member State of the Organisation for Economic Co-operation and Development is determined on the basis of a five-year expertise carried out by an expert accepted by the Autorité de contrôle prudentiel et de résolution. Between two expertises, the value is estimated annually, certified by an expert accepted by the Autorité de contrôle prudentiel et de résolution;
“e) Other investments are retained for their specified book value in accordance with sections R. 343-9 and R. 343-10, except where another value is derived from an expertise made under the provisions of section L. 341-4.
"For securities registered in non-coupon accounting under sections R. 343-9 and R. 343-10, there is a need to deduct from the assessment under this section the proratas of interest accrued from the last maturity to the date of the inventory.
"Art. R. 343-12.-The realisation value of the financial instruments is:
“(a) For long-term financial instruments exchanged on recognized markets within the meaning of the last paragraph of Article R. 332-2, the value of the last rating;
“(b) For voluntary instruments, the replacement cost, valued by at least two organizations that do not enter the same consolidation or preparation perimeter of the combined accounts referred to in sections L. 345-2 of this Code, L. 212-7 of the code of mutuality and L. 931-34 Social Security Code. One of the organizations may be the company itself, except opposition from the Autorité de contrôle prudentiel et de résolution. Organizations authorized for this evaluation are credit institutions, investment companies or, on the agreement of the Supervisory Authority, specialized agencies.
"Art. R. 343-13.-By derogation from the provisions of sections R. 343-9 and R. 343-10, investments admitted in representation of life insurance or variable capitalization contracts, in which the insured sum is determined in relation to a reference value, are subject to a separate estimate and are recorded in the balance sheet for their value on the day of the inventory.
"By derogation from the provisions of sections R. 343-9 and R. 343-10, at the time of the inventory, all values held by companies operating on branch 23 are estimated in accordance with the provisions of section R. 343-11.
“Section 3
"Revenue of investments
"Art. R. 343-14. -In the case of registered companies to practise the transactions referred to in 1° of Article L. 310-1, in the case of sale of values assessed in accordance with Article R. 343-9, except for variable rate obligations, payments or levies shall be made on the capitalization reserve provided for in Article R. 343-3.
"When a term financial instrument is used under the conditions set out in Article R. 332-45, and is linked to a title or group of securities mentioned in the first paragraph, the value of realizing this instrument to the termination is taken into account in the selling price of that title or group of securities.
"The amount of these payments or levies shall be calculated according to the terms specified by order of the Minister responsible for the economy according to the selling price of the securities and the potential tax impact of the assignment.
"Art. R. 343-15.- Life insurance, nuptiality-natal or capitalization insurance must maintain the net income of their investments to at least equal the amount of interest credited to mathematical provisions.
"Art. R. 343-16.-By derogation from Article R. 343-14, for enterprises practicing both the transactions mentioned in 1° and 2° of Article L. 310-1 whose amount of technical provisions relating to the transactions referred to in 1° of Article L. 310-1, calculated in accordance with the provisions in force on 31 December 2015, represented less than 10% of the total amount of technical provisions of the undertaking, » ;
14° Section R. 344-1 is replaced by the following provisions:
"Art. R. 344-1.-I.-The assessment referred to in section L. 344-1 is a percentage of the value of all investments owned by the undertaking and other assets that may affect the representation of regulated commitments, assessed in accordance with the provisions of section R. 343-11. For the companies mentioned in L. 310-3-1, the other assets include debts on insured persons, reinsurers and deferred acquisition costs. This percentage is at least equal to the result obtained by dividing by this value the sum of the following amounts:
“(a) Assets corresponding to the transactions referred to in Article L. 441-1, Article L. 142-1, Article L. 143-1, and Article L. 134-2, as assessed in accordance with Article R. 343-11;
“(b) Investments for the representation of life insurance or capitalization contracts in units of account defined in the second paragraph of Article L. 131-1 and assessed according to the requirements of the Authority of Accounting Standards;
"(c) Assets referred to in the first paragraph of Article L. 324-7, assessed in accordance with Article R. 343-11;
"(d) Amount of gross technical provisions for reinsurance made under the business practice for branches 20 to 26 of section R. 321-1, other than those referred to in a and b and reduced the amount of the assets referred to in c, assessed in accordance with sections R. 343-9 and R. 343-10;
“e) A percentage, defined in II, of the difference between, on the one hand, the value assessed in accordance with section R. 343-11, on the other hand, the value assessed in accordance with sections R. 343-9 and R. 343-10, all investments owned by the company and other assets affected by the representation of regulated commitments, other than those mentioned in a, b and c above. For companies referred to in section L. 310-3-1, other assets include claims for insured persons, reinsurers and deferred acquisition costs.
"II.-The percentage mentioned in e of I is 85% of quotient A/ B, with:
"A.-Meaning of the gross technical provisions of reinsurance constituted under all transactions carried out by the undertaking other than those referred to in (a) and (b) of this section or that are related to collective contracts in the event of death or, for joint ventures, to transactions under section 1 or 2 of section R. 321-1, and reduced the average amount of the assets referred to in (c) of this section,
"B.-Meaning of all investments owned by the company and those of other assets affecting the representation of regulated commitments, other than those mentioned in a, b and c of I above, assessed in accordance with sections R. 343-9 and R. 343-10. For companies referred to in section L. 310-3-1, other assets include claims for insured persons, reinsurers and deferred acquisition costs.
"The average amounts referred to in the preceding paragraph are obtained by dividing by two the sum of the amounts recorded in the accounts at the opening and closing of the fiscal year.
"III.-The investments, assets and provisions referred to in this section do not include those that are constituted by the undertaking as part of the transactions carried out by its establishments located abroad.
"IV.-In case of a portfolio transfer, the value of the transferred assets cannot exceed the value resulting from their valuation in accordance with the provisions of section R. 343-11. » ;
15° Articles R. 344-2 to R. 344-4 are repealed;
16° Chapter V is replaced by the following:
“Chapter V
“Consolidated and combined accounts
"Art. R. 345-1. - Subject to the provisions of this chapter and the accounting requirements defined by the Authority of Accounting Standards, the consolidated or combined accounts referred to in Article L 345-2 shall be established in accordance with the rules established by the Articles R. 233-2 to R. 233-15 of the Trade Code.
"Art. R. 345-1-1.-Constitutes a set subject to the obligation to establish combined accounts, two or more companies referred to in Articles L. 310-1 or L. 310-1-1, insurance group companies referred to in Article L. 322-1-2, mutuals or unions governed by Book II of the code of mutuality or group unions defined in Article L. 111-4voy-2 of the same codeArticle L. 727-2 of the Rural Code, social protection group societies defined in theArticle L. 931-2 of the Social Security Codein one of the following cases:
« 1° These entities have, under an agreement concluded between them, either a common management or a common service that is broad enough to generate common commercial, technical or financial behaviour;
« 2° These entities have important and lasting reinsurance links under contractual, statutory or regulatory provisions.
"Art. R. 345-1-2.-The designation of the entity responsible for establishing and publishing combined accounts is subject to a written agreement between all entities whose cohesion does not result from capital ties and belonging to the whole subject to the obligation to establish combined accounts. This agreement is binding on all companies on which one of the parties to the agreement has exclusive control, joint control or significant influence.
"In the absence of an agreement prior to the year's closing date, this entity is:
“(a) In the case mentioned in the 1st of section R. 345-1-1, the entity having paid the highest premiums or premiums over the past five fiscal years on average;
“(b) In the event that the obligation to establish a combined account arises only from the 2nd of section R. 345-1-1, the assignee and, in the case of several assignees acting, the assignee who has accepted on average, in the last three fiscal years, the highest amount of premiums or dues transferred by the entities of the aggregate subject to an obligation to establish a combined account.
"However, by derogation from the provisions of the previous paragraph, where an entity that is part of a set of entities as defined in section R. 345-1-1 is included in the consolidated accounts of an entity itself subject to a consolidation obligation under section L. 345-2, the entity required to establish and publish combined accounts is the consolidating entity. This obligation is confused in this case with the obligation to establish consolidated accounts. The consolidated accounts then include the accounts of the entities that are part of the above-mentioned set.
"Art. R. 345-1-3.-Where the entity designated in accordance with the provisions of the first paragraph of Article R. 345-1-2 is a company referred to in Articles L. 310-1 or L. 310-1-1, an insurance group corporation referred to in Article L 322-1-2, a mutual or union governed by Book II of the code of mutuality, a mutual union of group referred to in Article 2 It shall be communicated within the same period to the auditors of all entities included in the scope of the combination.
"Art. R. 345-1-4.-When the auditor of an enterprise referred to in Articles L. 310-1 or L. 310-1-1, of an insurance group corporation referred to in Article L. 322-1-2, of a mutual share or of a union governed by Book II of the code of mutuality, of a mutual union of group referred to in Article L. 111-4-2 provisions of Article L. 612-44 of the monetary and financial code. »
I.-The same code is amended as follows:
1° In sections D. 132-7, R. 134-8 and R. 144-27, the reference: "R. 331-5" is replaced by the reference: "R. 132-5-3";
2° In sections R. 134-1, R. 134-2, R. 134-4, R. 134-6, R. 134-12 and R. 334-13 and R. 334-13-2, the reference "R. 331-3" is replaced by the reference "R. 343-3";
3° In sections R. 134-3 and R. 332-2, the reference: "R. 332-19" is replaced by the reference: "R. 343-9";
4° In sections R. 134-3 and R. 332-17 the reference: "R. 332-20" is replaced by the reference: "R. 343-10";
5° In sections R. 134-3, R. 134-4, R. 342-3, the reference: "R. 332-20-1" is replaced by the reference: "R. 343-11" and the reference: "R. 332-20-2" is replaced by the reference: "R. 343-12";
6° In R. 310-17, the words: "in the conditions referred to in II of Article R. 323-1" are replaced by the words: "in accordance with Article L. 612-32 of the monetary and financial code" and the words: "in the sense of II of Article R. 323-1" are replaced by the words: "in the sense of II of Article L. 612-33 of the Monetary and Financial Code » ;
7° In R. 310-17-3, the reference: "R. 332-63" is replaced by the reference: "R. 342-14";
8° In sections R. 321-16, R. 325-8 and R. 423-1, the reference "L. 321-9" is replaced by the reference "L. 329-1";
9° In R. 322-1, the references: ", L. 321-8 and L. 321-9" are replaced by the reference: "and L. 329-1";
10° In R. 322-4-1, the words: "of section L. 334-2 of this code" are replaced by the words: "from 3° of Article L. 517-2 of the monetary and financial code » ;
11° In sections R. 322-6 and R. 322-73, the reference: "R. 331-5-4" is replaced by the reference: "R. 343-6";
12° In R. 332-10, the reference: "R. 331-1" is replaced by the reference: "R. 343-1";
13° In sections R. 332-48, R. 336-2 and R. 336-5, the reference "L. 322-2-4" is replaced by the reference "L. 336-1";
14° In R. 334-1-1, the references: "R. 334-5, R. 334-7, R. 334-9, R. 334-15, R. 334-16 and R. 334-27" are replaced by the references: "R. 334-7, R. 334-9, R. 334-9-1 and R. 334-15";
15° In R. 334-21, the words: "in R. 334-15 and R. 334-16" are replaced by the words: "in R. 334-15";
16° In section R. 364-1, the words: "in the conditions of section R. 323-1 or section R. 323-10-1" are replaced by the words: "in accordance with theArticle L. 612-32 of the monetary and financial code » ;
17° In Article R. 370-2, the words: "group within the meaning of Article L. 334-2" are replaced by the words: "group within the meaning of Article L. 356-1";
18° In articles R. 511-2, R. 512-3 and R. 512-4, the words "European Community" are replaced by the words "European Union".
II.-At 1° of Article R. 752-39 of the Rural and Maritime Fisheries Code, the reference "L. 321-9" is replaced by the reference "L. 329-1".
III.-At the 2nd of the III of Article 10 of the above-mentioned Decree of 23 December 2009, the reference: "R. 331-6" is replaced by the reference: "R. 343-7".
The same code is amended:
1° Chapter III of Book I IX is repealed;
2° Title VI of Book II is repealed;
3° Title VIII of Book III is repealed;
4° Title VI of Book IV is repealed;
5° Title III of Book V is repealed.
I.-Article R. 214-239 of the monetary and financial code is replaced by the following:
"Art. R. 214-239.-To grant the approval referred to in Article L. 214-189, the Autorité de contrôle prudentiel et de résolution verifies that the regulations or statutes of the organization, in particular with regard to the composition of the assets and the strategy of coverage of the risks, are consistent with the funding rule in full of its commitments, defined at the 5th of Article D. 214-237. The Authority also verifies that all the conditions set out in Article 318 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 are met. »
II.-At the 2nd of Article R. 612-10 of the same code, after the words: "of 26 June 2013" are inserted the words: "and Directive 2009/138/EC of the European Parliament and the Council of 25 November 2009".
III.-A article R. 561-28 of the same code, the words: "to theArticle L. 334-2 of the Insurance Code, to theArticle L. 212-7 of the mutuality code or at the 7th of Article L. 212-7-1 of the same code are replaced by the words: "at Article L. 356-1 of the insurance code" and the words: "the parent company, the combinating mutual or the reference agency as defined in Article L. 212-7-1 of the mutuality code" are replaced by the words: "the parent company".
IV.-Article R. 612-37 of the same code is amended to read:
1° The reference: "L. 334-2 of insurance code is replaced by the reference: "L. 356-1 of insurance code » ;
2° The 3° is replaced by the following:
« 3° The insurance company, the group mutualist union or the insurance group society to which the respondent is affiliated or linked".
I.-The book I of the mutuality code is thus modified:
1° In chapter IV, the title of section 5 is replaced by the following title:
“Section 5
Provisions relating to the functions of administrator and operational officer";
2° Chapter V is amended to read:
(a) Section R. 115-2 is replaced by the following:
"Art. R. 115-2.-I.-The statutes of the group mutualist unions must set the conditions for the admission, withdrawal or exclusion of the organizations affiliated with the group mutualist union.
"They must provide that the admission, withdrawal or exclusion of an affiliated organization is the subject of a pre-report to the Authority for prudential control and resolution, together with a record of which it sets the composition. The Authority may, within a period of three months from the date of receipt of the record, object to the transaction, if it appears contrary to the interests of the insured persons of the affiliated organizations, by a reasoned decision addressed to the person(s) interested by registered letter with acknowledgement of receipt. If there is no opposition from the prudential and resolution control authority, the operation may be carried out upon the expiry of this period.
"These statutes must also:
“(a) Setting, without being kept by a minimum, the amount of their settlement funds;
“(b) Provide that the General Assembly is composed of all affiliated organizations, represented by at least one of their officers or directors or members of the Supervisory Board or by a representative of the affiliated organization directly appointed by the General Assembly or the Joint Commission as appropriate;
"(c) Determine the number of votes each of these organizations has;
"(d) Determine the modalities of the effective exercise of the dominant influence of the mutualist group union on decisions, including financial, of affiliated organizations.
"II.-The statutes must confer on the group mutualist powers of control over affiliated organizations, including with respect to their management. They may, in particular, provided that the statutes of the affiliated organizations permit:
“(a) Subordinate the prior authorization of the board of directors or of the general assembly of the group mutualist union of the conclusion by these organizations of transactions listed by the statutes, including the acquisition or assignment of buildings by nature, the acquisition or total or partial disposal of assets or interest, the establishment of security rights and the granting of bonds, endorsements or guarantees;
“(b) Provide powers of sanction to the group mutualist union with respect to affiliated organizations.
"III.-The statutes may provide that any organization requesting its admission to the mutualist group union shall, in advance, amend its own statutes in order to recognize to the mutualist group union the right to request the convening of its general assembly or, where appropriate, of the parity board and to propose to it the election of new candidates for the functions of administrator or member of the supervisory board.
"IV.-Projects of statutes must indicate the method of remuneration of management. Where applicable, they may also provide for the method of compensation of directors under the conditions set out in section L. 114-26. » ;
(b) Section R. 115-4 is amended to read:
(i) In the first paragraph of VIII, the words: "the prudential control authority" are replaced by the words: "the prudential control and resolution authority";
(ii) The last paragraph is replaced by the following provisions: "The decision of the Authority is communicated to the General Assembly. » ;
(c) At the beginning of the third paragraph of Article R. 115-5, the words: "When the union is thus declared null at the request of interested persons or of the region prefect" are replaced by the words: "When the union is so annulled";
(d) In article R. 115-6 of the code of mutuality, the words: "in the third paragraph of article L. 111-4-2" are replaced by the words: "in the eleventh paragraph of article L. 111-4-2";
(e) After the article R. 115-6, an article R. 115-7 is inserted as follows:
"Art. R. 115-7.-For the purposes of the provisions of Chapter VI of Title V of Book III of the Insurance Code by mutualist group unions, it is necessary to hear: “operational leader” where is mentioned in the insurance code : “Director General”. »
II.- Chapter I of Book II title I of the same code is amended as follows:
1° It is created before section R. 211-1, a sub-section 1 entitled "Subsection 1: Conditions of Exercise" including section R. 211-1;
2° In R. 211-1, the words "and those of Book V" are replaced by the words "and those of Book VI of the Monetary and Financial Code";
3° Section 2:
(a) The title of this section is deleted;
(b) It is created after R. 211-1, a sub-section 2 entitled "Sub-section 2: Accreditations" comprising sections R. 211-2 to R. 211-12;
(c) Sub-section 1 is replaced by a paragraph 1 entitled: "Paragraph 1: Administrative Accreditation of Mutuals and Insurance Unions" which includes sections R. 211-2 to R. 211-4;
(d) In R. 211-2, the reference: "L. 211-7" is replaced by the reference: "L. 211-8";
(e) Section R. 211-3 is replaced by the following provisions:
"Art. R. 211-3.-Subject to the provisions of sub-section 2 of chapter I, section 1, of Book II title I, sections R. 321-1-1 to R. 321-5, R. 321-14 and R. 321-16 to R. 321-18 of the Insurance Code are applicable to mutual funds and unions referred to in Article L. 211-8.
"For the purposes of the previous paragraph, the reference is "R. 321-1 of the insurance code “is replaced by the reference: “R. 211-2 of code of mutuality “and it is necessary to hear: “mutual or union” where is mentioned in the insurance code : “company”, “regulation or collective contract” where is mentioned: “contract”, “the mutuals and unions referred to in Article L. 211-8” where is mentioned: “the companies mentioned in 1°, 3° and 4° of Article L. 310-2”, “the risks mentioned in a and b of the 1st of Article L. 111-1 of the mutuality code “where is mentioned “the risks mentioned in 1° and 2° of Article L. 310-1” and “accreditations mentioned in Article L. 211-8” where is mentioned: “accreditations mentioned in Articles L. 321-1, L. 321-7 and L. 321-9”.
(f) The last paragraph of Article R. 211-4 is deleted;
(g) Article R. 211-5 is repealed;
(h) Sub-section 2 is replaced by a paragraph entitled: "Paragraph 2: Administrative approval of mutual and reinsurance unions" which includes articles R. 211-5-1 to R. 211-5-3;
(i) In R. 211-5-1, the reference: "L. 211-7-2" is replaced by the reference: "L. 211-8-1";
(j) In R. 211-5-2, the words: "of Article L. 212-7" are replaced by the words: "from 3° of Article L. 517-2 of the monetary and financial code » ;
(k) After the article R. 211-5-2, an article R. 211-5-3 was added as follows:
"Art. R. 211-5-3.- Subject to the provisions of sub-section 2 of chapter I, section 1, of Book II title I, articles R. 321-5-2, R. 321-5-3 and R. 321-26 to R. 321-29 the insurance code shall apply to mutual funds and unions referred to in Article L. 211-8-1.
"For the purposes of the preceding paragraph, it is necessary to hear: "the mutuals and unions referred to in Article L. 211-8-1" where is mentioned in the insurance code “any undertaking referred to in 1° of the III of Article L. 310-1-1” and “accreditations referred to in Article L. 211-8-1” where is mentioned: “accreditations referred to in Article L. 321-1-1”. » ;
(l) Sub-section 3 is replaced by a paragraph 3 entitled "Paragraph 3: Provisions common to administrative approvals" which includes section R. 211-9;
(m) The last paragraph of Article R. 211-9 is repealed;
(n) Articles R. 211-6, R. 211-7-1, R. 211-8, R. 211-10 and R. 211-11 and R. 211-13 to R. 211-18 are repealed;
(o) It is created after R. 211-18 a paragraph 4 as follows:
“Paragraph 4
" Caducity of approvals
"Art. R. 211-12.-The Autorité de contrôle prudentiel et de résolution can see the caducité de l'accréditation pour les branches ou sous-branches, at the request of a mutual or union when another mutual or union substituted for it pursuant to Article L. 211-5 under the conditions provided for in theArticle L. 321-10-2 of the Insurance Code.
4° After R. 211-18, a section 2 is inserted as follows:
“Section 2
“Guidelines for Mutuals and Unions under the so-called solvency II regime”
"Art. R. 211-13.-The requirement of jurisdiction referred to in VIII of Article L. 114-21 shall be assessed in accordance with Article 258 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014 without prejudice to the provisions of Article R. 114-9.
"Art. R. 211-14.-The provisions of Chapter IV of Title V of Book III of the Insurance Code are applicable to mutual unions and unions referred to in Article L. 211-10.
"Art. R. 211-15.-The president of the board of directors and the operational officer referred to in Article L. 211-4 effectively direct the mutual or union within the meaning of Article L. 211-13.
"The board of directors may also, on the proposal of its president, designate one or more physical persons as an effective officer, who are not mentioned in the preceding paragraph. These individuals must have a sufficiently broad area of competence and authority over the activities and risks of the mutual or union, demonstrate sufficient availability within the mutual or union to exercise this role, and be involved in decisions that have a significant impact on the mutual or union, including in terms of strategy, budget or financial matters. On the proposal of its president, the board of directors may withdraw this function.
"The board of directors defines cases in which the actual leaders are absent or prevented in order to ensure continuity of the effective direction of the mutual or union. » ;
5° Section R. 211-19 is amended to read:
(a) The references: "L. 211-7 and L. 211-8" are replaced by the references: "L. 211-8 and L. 211-8-1";
(b) The second paragraph is supplemented by a sentence as follows:
"The legal protection insurance contract referred to in Article L. 224-2 shall state the name and seat of the mutual or legally distinct union to which the loss management of the legal protection branch is entrusted. » ;
6° In R. 211-23, the words: "by order of the Minister responsible for mutuality" are replaced by the words: "by the Authority for prudential control and resolution";
7° Article R. 211-25 is repealed;
8° In the second paragraph of article R. 211-27, after the words: "he is withdrawn" are inserted the words: "or is declared a caduc";
9° Section 5 is repealed.
III.-Chapter II of Book II title I of the same code is amended as follows:
1° A Section R. 212-1, in the first paragraph, the words: "in section L. 211-8" are replaced by the words: "in articles L. 321-10 and L. 321-10-1 the insurance code" and the last paragraph after the words: "mutuals" are inserted the words: "or unions";
2° Section R. 212-9-1 is replaced by the following provisions:
"Art. R. 212-9-1.-For the mutuals and unions governed by this book and referred to in Article L. 211-11, the amount of the right of accession cannot exceed the relationship between, on the one hand, the margin of solvency referred to in Articles R. 334-5, R. 334-13 and R. 334-19 of the Insurance Code, on the other hand, the number of participating members and fees recognized on the However, where the actual amount of solvency is less than the regulatory minimum amount, the first term of this report is higher than the amount of this deficiency.
"For the mutuals and unions referred to in Article L. 211-10, the amount of the right of membership cannot exceed the ratio of, on the one hand, the solvency capital required under Article L. 352-1 of the Insurance Code, on the other hand, the number of participating members and fees recognized at the end of the year on which the approved accounts are held. However, where the eligible equity referred to in Article L. 351-6 of the insurance code is insufficient to cover the required solvency capital, the first term of this report is increased by the amount of this deficiency. » ;
3° The title in section 2 is replaced by the following title: "Section 2: Accounting Plan";
4° Section R. 212-10 is replaced by the following provisions:
"Art. R. 212-10.-I.-The assessment referred to in Article L. 212-6 is a percentage of the value of all investments belonging to the mutual or union and those of other assets that affect the representation of regulated commitments, assessed in accordance with the provisions of Article R. 343-11 of the Insurance Code. For the mutuals and unions referred to in Article L. 211-10, the other assets include claims for participating members and reinsurers, as well as deferred acquisition costs. This percentage is at least equal to the result obtained by dividing by this value the sum of the following amounts:
“(a) Assets for transactions under Article L. 222-1, assessed in accordance with Article R. 343-11 of the Insurance Code;
“(b) Investments for the representation of transactions in units of account in which the insured amount is determined against a reference value and assessed in accordance with last paragraph of Article R. 332-5 of the Insurance Code ;
"(c) Assets transferred with a portfolio of regulatory or contract membership bulletins, assessed in accordance with section R. 343-11 of the insurance code;
"(d) Amount of gross technical provisions for reinsurance constituted for transactions performed by the mutual or union for branches 20 to 22 and 24 to 26 of article R. 211-2 other than those mentioned in a and b and diminished of the amount of assets referred to in c, assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code;
“e) A percentage, defined in II, of the difference between, on the one hand, the value assessed in accordance with section R. 343-11 of the insurance code, on the other hand, that assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code, all investments belonging to the mutual or union, and those of other assets that affect the representation of regulated commitments other than those mentioned in a, b and c. For the mutuals and unions referred to in Article L. 211-10, the other assets include claims for participating members and reinsurers, as well as deferred acquisition costs.
"II.-The percentage mentioned in e of I is 85% of quotient A/ B, with:
"A.-Meaning of the gross technical provisions of reinsurance constituted under all transactions carried out by the mutual or union other than those mentioned in a and b of I or that are related to collective transactions in the event of death or, for the mutuals or unions authorized to practise simultaneously the transactions referred to in a and b of 1° of Article L. 111-1, to transactions under 1 or 2
"B.-Meaning of all investments belonging to the mutual or union and those of other assets affecting the representation of regulated commitments, other than those mentioned in a, b and c of I, assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code. For the mutuals and unions referred to in Article L. 211-10, the other assets include claims for participating members and reinsurers, as well as deferred acquisition costs.
"The average amounts referred to in the preceding paragraph are obtained by dividing by two the sum of the amounts recorded in the accounts at the opening and closing of the fiscal year.
"III.-The investments, assets and provisions mentioned in this section do not include those that are constituted by the mutual or union in the course of the transactions carried out by its branches located abroad.
"IV.-In the event of a portfolio transfer, the value of the transferred assets cannot exceed the value resulting from their valuation in accordance with the provisions of Article R. 343-11 of the Insurance Code. » ;
5° Section R. 212-11 is replaced by the following:
"Art. R. 212-11.-The provisions of Title IV of Book III of the Insurance Code, with the exception of those of Chapter IV, apply to mutual unions and unions governed by Book II of the Mutual Code.
“For the purposes of this article, it is necessary to hear: “participation in surplus” where is mentioned: “participation in profits”, “contributions” where is mentioned: “primations”, “benefits to be paid” where is mentioned: “contributions to be paid” where is mentioned: “contributors” b of 1° of Article L. 111-1 of the mutuality code “where is mentioned: “the operations mentioned in the 1st of Article L. 310-1”, “the operations mentioned in the a and b of the 1st of Article L. 111-1 of the mutuality code “where is mentioned: “the transactions mentioned in 1° and 2° of Article L. 310-1”, “assessment” where is mentioned: “primary”, “the mutual or union” where is mentioned: “the insurer”. » ;
6° Articles R. 212-12 to R. 212-20-3 are repealed;
7° Section 3:
(a) The title of this section is replaced by the following title: "Section 3: Fusion, Scission, Dissolution, Judicial Recovery, liquidation, remediation";
(b) Sections R. 212-21 and R. 212-22 are replaced by the following:
"Art. R. 212-21.- Assets transferred with guarantees related to membership bulletins or collective contracts under the b of 1° of the I of Article L. 111-1 by a mutual or a union shall be assigned to a separate accounting section of the balance sheet of the mutual or the assignee union of the membership bulletins or collective contracts.
"For the calculation of the share in the surpluses of these assets under section L. 212-5, it is not taken into account the respective importance of the equity and commitments made to participating members, beneficiaries and beneficiaries in the balance sheet of the mutual or union.
"Art. R. 212-22.-The portfolio transfers referred to in Article L. 212-11 relating to transactions governed by Article R. 211-21 shall be carried out by the mutual or substitute union to the transferring agencies in accordance with the provisions of the same Article, which shall act on behalf of the organizations to which it has substituted. The notice and the portfolio transfer decision referred to in section L. 212-11 shall include in the annex the list of transactions and agencies involved in the transfer. » ;
(c) After section R. 212-22, two articles R. 212-22-1 and R. 212-22-2 are inserted as follows:
"Art. R. 212-22-1.-When a liquidation procedure is opened pursuant to Article L. 212-15, the liquidator shall promptly and individually inform each known creditor who has his habitual residence, domicile or head office in a Member State other than France by a written note.
"The contents and format of the note are fixed by order of the Minister responsible for mutuality. »
"Art. R. 212-22-2.-Chapter V of Title II of Book III of the Insurance Code applies to mutual unions and unions referred to in Articles L. 211-8 and L. 211-8-1.
"For the application of the previous paragraph, it is necessary to hear: "mutual or union" where is mentioned in the insurance code : “company”. » ;
8° Sections 4.5,6,7 and 8 are repealed.
IV.-Chapter III of Book II title I of the same code is repealed.
V.-The title II of Book II of the same code is amended as follows:
1° In R. 222-8, the words "in chapter II of title I of this book" are replaced by the words "in chapter II of title III of Book III of the Insurance Code";
2° Articles R. 222-23 to R. 222-26 are repealed;
3° Section R. 222-31 is replaced by the following provisions:
"The report referred to in the last paragraph of Article L. 222-8 is forwarded to the Autorité de contrôle prudentiel et de résolution. » ;
4° In R. 222-32, the words: "of this code" are replaced by the words: "of" insurance code » ;
5° Chapter II ter is repealed;
6° Chapter III is amended to read:
(a) In R. 223-1, the reference: "R. 212-31" is replaced by the reference: "R. 332-2 of insurance code » ;
(b) In R. 223-3, the reference: "R. 212-31" is replaced by the reference: "R. 332-2 of insurance code » ;
(c) After the article R. 223-6, two articles R. 223-7 and R. 223-8 are inserted as follows:
"Art. R. 223-7.-For any membership bulletin or collective contract relating to an insurance transaction on life and for the capitalization transactions whose sum insured is determined in relation to a reference value, the corresponding rights expressed in units of account shall be represented to the assets of the balance sheet by investments entering the composition of that reference value and in the proportions fixed by that composition.
"Art. R. 223-8.-The allowance referred to in the third paragraph of Article L. 223-20-1 shall not exceed 5% of the present value of the commitments made by the mutual or union and by the participating members referred to in the first paragraph of Article L. 223-20-1 and shall be void after a period of ten years from the date of effect of the contract.
"For the purposes of this Article, the current value of the commitments made by the mutual or union and by the participating members shall not take into account any guarantees of non-expendable fidelity by the participating member at the time of the redemption. These guarantees must be explicitly described in the collective regulation or contract and clearly distinguished from the guarantee which is the principal object of the guarantee. »
VI.-Chapter IV of Book IV title I of the same code is amended as follows:
1° At the 5th of Article R. 414-2, the words "employees mentioned in Article L. 114-19" are deleted;
2° In article R. 414-3, after the words: "in respect of mutuals" are inserted the words: "and unions";
3° In R. 432-1, the references: "L. 211-7 to L. 211-8" are replaced by the references: "L. 211-8 and L. 211-8-1";
4° In R. 432-6, the references: "L. 212-20 and L. 212-21" are replaced by the references: "L. 326-12 and L. 326-13 of insurance code » ;
5° Section R. 432-13 is amended to read:
(a) In I, the words: "and the provisions of this article relating to mutual or union obligations under the first paragraph of Article R. 111-5 and taking the relief measures requested by the federal guarantee system" are deleted;
(b) In the last paragraph of II, the references: "L. 211-7 and L. 211-8" are replaced by the references: "L. 211-8 and L. 211-8-1";
6° Article R. 432-16 is repealed;
7° The last paragraph of section R. 432-17 is repealed.
VII.-Chapter I of Book V of the same code is repealed.
VIII.-In chapter III of Book V of the same Code, section R. 510-19 is amended as follows:
1° The reference: "R. 212-21" is replaced by the reference: "R. 343-1 of the insurance code", the reference: "R. 212-27" is replaced by the reference: "R. 223-8" and the reference: "R. 212-49" is replaced by the reference: "R. 332-16 of the insurance code » ;
2° The 3° is replaced by the following:
« 3° Not to produce a recovery strategy, recovery plan, recovery plan or short-term funding plan prescribed in accordance with the provisions of sections R. 335-1, R. 335-4, R. 335-5 or R. 352-33 of the insurance code or not to implement the approved condition and time; »
3° In the last paragraph, after the words: "the directors" are inserted the words: "the operational officer".
I.-Section 1 of Chapter 1 of Title 3 of Book 9 of the Social Security Code is amended as follows:
1° In R. 931-1-2, the words "and title V of this book" are replaced by the words "and book VI of the monetary and financial code";
2° In R. 931-1-3, the words "of Book VII of the Labour Code" are replaced by the words "of the seventh part of the Labour Code";
3° In R. 931-1-6, the reference: "L. 931-5" is replaced by the reference: "L. 321-10 of insurance code » ;
4° In R. 931-1-9, the words: "Article L. 132-10 of the Labour Code are replaced by the words: "the articles L. 2231-6 and L. 2261-1 the Labour Code";
5° In section R. 931-1-11, the words: "Managers as defined in the second paragraph of section R. 951-4-1" are replaced by the words: "Managers, Director General and delegated Directors General";
6° After R. 931-1-14, a sub-section 4 is inserted as follows:
"Subsection 4
“Social protection group societies
"Art. R. 931-1-15. -Social protection group societies are constituted by the general meeting of representatives of the founding organizations.
"Previous to the holding of the constitutive general assembly of the social welfare insurance company, the founding bodies shall deposit the constituent elements of the settlement fund under the conditions provided for in Article R. 931-1-7.
"At the minutes of the constitutive assembly are annexed the following elements:
“(a) The duly certified list of founding organizations, mentioning for each of them their names, their headquarters, the amount of their technical commitments and their turnover by branch;
“(b) A copy of the statutes;
"(c) The status of payments for the establishment of the settlement fund;
"(d) A certificate from the notary or credit institution stating that these amounts have been paid prior to the constitution of the insurance company for social protection.
"The above documents must be sent within one month to the Autorité de contrôle prudentiel et de résolution.
"The provisions of articles R. 931-1-10 and R. 931-1-11 relating to advertising are applicable to social welfare insurance companies.
"Art. R. 931-1-16.-I.-The statutes of social welfare insurance companies must set the conditions for the admission, withdrawal or exclusion of organizations affiliated to the social welfare group corporation.
"They must provide that the admission, withdrawal or exclusion of an affiliated organization is the subject of a pre-report to the Authority for prudential control and resolution, together with a record of which it sets the composition. The Authority may, within a period of three months from the date of receipt of the record, object to the transaction, if it appears contrary to the interests of the insured persons of the affiliated organizations, by a reasoned decision addressed to the person(s) interested by registered letter with acknowledgement of receipt. If the Authority fails to object, the operation may be carried out upon the expiry of this period.
"These statutes must also:
“(a) Setting, without being kept by a minimum, the amount of their settlement funds;
“(b) Provide that the General Assembly is composed of all affiliated organizations, each represented by not more than two of its officers, administrators or members of the duly appointed Supervisory Board or by a representative directly appointed either by the General Assembly or by the Joint Committee, if any, or by delegates of the affiliated organization themselves appointed by the General Assembly or by the Joint Committee as appropriate;
"(c) Determine the number of votes each of these organizations has;
"(d) Determine the terms and conditions for the effective exercise of the dominant influence of the social welfare insurance company on decisions, including financial, of affiliated organizations.
"II.-The statutes must confer on the social protection group society powers of control over affiliated organizations, including with respect to their management. They may, in particular, provided that the statutes of the affiliated organizations permit:
“(a) Subordinate the prior authorization of the board of directors or supervisory board of the insurance company of social protection, the conclusion by these organizations of transactions listed by their statutes, including the acquisition or assignment of buildings by nature, the acquisition or total or partial assignment of assets or interest, the establishment of security rights and the granting of bonds, endorsements or guarantees;
“(b) Provide sanctioning powers of the social protection group corporation with respect to affiliated organizations.
"III.-The statutes may provide that any organization requesting its admission to the social welfare insurance company shall, in advance, amend its own statutes in order to recognize the right of the social welfare insurance company to request the convening of its general assembly, or, where applicable, of the parity committee and to propose to the society the election of new candidates for the functions of administrator or member of the supervisory board.
"IV.-An order of the Minister for Social Security specifies the mentions and headings to be included in the statutes of social welfare insurance companies.
"Art. R. 931-1-17. -The social protection group corporation is administered by a board of directors composed of at least 10 members. The statutes set the maximum number of Council members, which cannot exceed thirty.
"The board of directors shall be composed under the conditions specified in the last three paragraphs of section R. 931-3-1.
"Art. R. 931-1-18.-The directors are appointed by the General Assembly.
" Subject to the provisions of Article R. 931-1-20, the duration of the functions of the administrator shall be determined by the statutes of the social welfare insurance company without being able to exceed four years.
"The term of office of outgoing directors may be renewed unless otherwise stipulated in the statutes.
"Art. R. 931-1-19.-The statutes shall provide, for the performance of the functions of the administrator, an age limit applicable either to all directors or to a specified percentage of them.
"In the absence of an express provision in the statutes, the number of directors who have exceeded the age of seventy years cannot exceed one third of the directors in office. Any appointment made in violation of these provisions is void.
"In the absence of an express provision in the statutes providing for another procedure, where the statutory or legal limitation for the age of directors is exceeded, the oldest administrator shall be deemed to be resigned ex officio.
"Art. R. 931-1-20.- Administrator positions that have become vacant by death, resignation or loss of the mandate of the organization it represents, are filled under conditions and times defined by the statutes of the social welfare insurance company.
"The positions of directors whose continuation of the mandate has been objected to by an opposition from the prudential control authority and resolution under the conditions mentioned in V of Article L. 612-23-1 of the Monetary and Financial Code are provided under conditions and deadlines defined by the statutes of the social welfare group.
"Art. R. 931-1-21.-The board of directors shall determine the direction of the activity of the social welfare insurance company and shall ensure their implementation. Subject to the powers expressly assigned to the general assemblies and within the limits of the social object, the Committee shall take up any matter of interest to the good functioning of the social welfare group society and shall, by its deliberations, settle the matters concerning it. It sets out the budget, accounts and management report.
"In respect of third parties, the insurance group society for social protection is engaged even by the acts of the board of directors that do not fall under its social object, unless it proves that the third party knew that the act exceeded that object or that it could not ignore it in the circumstances, the only publication of the statutes did not suffice to prove it.
"The Board of Directors conducts the controls and audits that it considers appropriate. The President or the Director General of the Social Welfare Insurance Group Corporation is required to communicate to each director all the documents and information necessary to carry out his or her mission.
"The bonds, endorsements and guarantees given by the insurance company of social protection are subject to authorization from the board of directors under the conditions provided for in theArticle R. 225-28 of the Commercial Code.
"Art. R. 931-1-22. -It may be allocated, by the board of directors, exceptional remuneration for the missions or mandates entrusted to directors. In this case, these remunerations, subject to operating expenses, are subject to the provisions of sections R. 931-3-24 to R. 931-3-28.
"Art. R. 931-1-23.-The board of directors shall elect from among its members a chair and, where appropriate, a vice-president. He determines his remuneration.
"The President and, where applicable, the Vice President shall be appointed for a term not exceeding that of their term of office as administrator. They are eligible for re-election.
"The board of directors may revoke them at any time. Any contrary provision is deemed to be non-written.
"Art. R. 931-1-24. -In the event of a temporary incapacity or death of the president, the board of directors may delegate a director to the office of president.
"In the event of temporary incapacity, this delegation is given for a limited period of time. It's renewable. In case of death, it is valid until the election of the new president.
"In the event of the death, resignation or revocation of the chair of the board of directors and if the board was unable to replace it with one of its members, it may appoint, subject to the provisions of section R. 931-1-20, an additional administrator who is called to serve as president.
"Art. R. 931-1-25. -The functions of a director shall be terminated after the meeting of the General Assembly having held on the accounts of the past year and held in the year in which the term of office of the director expires.
"Art. R. 931-1-26.-Unless otherwise provided in the statutes, an administrator may give, in writing, a warrant to another administrator to represent him at a session of the Board of Directors.
"Each director may only have one of the proxys received by application of the preceding paragraph at any time during the same session.
"Art. R. 931-1-27.-The board of directors may confer on one or more of its members any special warrants for one or more specified objects.
"He may decide on the establishment of committees to study the issues that he or his president submits, for advice, to their consideration. It sets out the composition and responsibilities of the committees that operate under its responsibility.
"Art. R. 931-1-28.-Sections R. 931-3-9, R. 931-3-10-1, R. 931-3-13 to R. 931-3-14-1, R. 931-3-16 to R. 931-3-19, R. 931-3-21 to R. 931-3-22-4, R. 931-3-23, R. 931-3-24 to R. 931-3-28 and the first paragraph of R.
"For the purposes of these provisions, it is necessary to hear: "sociative social protection group societies" where it is mentioned: "foresight institutions or their unions".
"Art. R. 931-1-29.-I.-It is held annually at least one general assembly under the conditions provided for by the statutes. At this meeting are presented by the board of directors, the balance sheet, the result account and the schedule of the past year of the social welfare insurance company.
"The General Assembly may also be convened at any time by the Board of Directors.
"II.-The President shall summon the General Assembly by registered letter to the affiliated organizations, at least 15 days before the date fixed for the meeting of the Assembly, mentioning the agenda. The Assembly can only deliberate on the items on this agenda.
"The agenda, as decided by the President, includes the proposals of the Board of Directors and those made available to it by any affiliated organization at least twenty days before the meeting of the General Assembly.
"III.-Any affiliated organization may, within the fifteen days preceding the meeting of a general assembly, take, at the head office, communicate by itself or by an agent, the balance sheet, the result account and the annex of the insurance company of social protection that will be presented to the general assembly as well as all documents that must be communicated to the assembly among which must include the balance sheet, the technical and non-technical results accounts and
"IV.-The General Assembly shall deliberate validly if the affiliates by convention present or represented constitute at least half, at the same time, the total number of affiliated organizations and the voices of which they have. If not, a new assembly shall be convened in the forms and times prescribed by the statutes; in this case, the assembly shall deliberate validly whatever the number of organisms present or represented.
"V.-The General Assembly, provided that the majority of at least two thirds, in numbers and in votes, of affiliated organizations, may amend the statutes in all their provisions. It may, under the same conditions, authorize the merger of the social welfare group society with another social welfare group society.
"VI.-The provisions of articles R. 931-3-52 to R. 931-3-64 apply to social welfare insurance companies.
" VII.-In the event that, as a result of losses found in the accounting documents, the net assets become less than half of the settlement fund, the board of directors is required to provoke the meeting of the general assembly deliberating under the conditions set out in the V and to decide whether the dissolution of the insurance company of social protection is necessary.
" VIII.-Any decision to borrow must be authorized by the General Assembly deliberating under the conditions set out in the V and be subject to a special resolution whose content is previously subject to the approval of the Authority for prudential control and resolution. The decision is taken, by ensuring the safeguarding of the interests of the insured or participating members of the affiliated organizations, in the light of a file containing a detailed presentation of the objectives pursued, the consequences of the loan on the financial situation of the insurance company and the affiliated organizations, as well as, where appropriate, a specific description of the cases of advance refund. The decision of the Authority is communicated to the General Assembly.
"Art. R. 931-1-30.-Any social protection group corporation constituted in violation of R. 931-1-15 to R. 931-1-18 is void.
"However, neither the social welfare group company nor the affiliated organizations can avail themselves of the invalidity of third parties in good faith.
"When the social welfare insurance company is thus declared null at the request of the interested persons, the founders to whom the nullity is attributable and the directors at the time it was incurred are jointly liable to the third parties and the affiliated bodies for the damage resulting from the cancellation.
"If, to cover nullity, a general assembly was to be convened, the action in nullity is no longer admissible from the date of the regular convocation of this assembly.
"The nullity action of the insurance company of social protection or the acts and proceedings after its constitution is extinguished when the cause of nullity has ceased to exist before the introduction of the application or, in any case, on the day the court decides on the merits in the first instance. Notwithstanding regularization, the costs of the nullity proceedings previously filed are borne by the defendants.
"The court having an action in nullity may, even on its own motion, set a time limit to cover nullities.
"The action on liability, for the facts resulting from nullity, also ceases to be admissible, when the cause of nullity has ceased to exist, either before the application was introduced, or on the day the court decides on the merits in the first instance, or within a time limit to cover the nullity, and, moreover, when three years have elapsed since the day the invalidity was incurred.
"Art. R. 931-1-31.-The affiliation agreement referred to in the eleventh paragraph of Article L. 931-2 contains the description of the links, obligations, commitments and terms and conditions of cost-sharing or any other form of cooperation between the insurance company for social protection and the affiliated organization. It must include the latter's commitment to subordinating its possible withdrawal from compliance with the conditions laid down in second paragraph I of Article R. 931-1-16.
"The affiliation agreements, their amendments and their possible termination must be approved by the general assemblies of the social welfare group corporation and the affiliated organization. »
II.-Section 2 of Chapter 1 of Book 9 title 3 of the same code is amended as follows:
1° Before section R. 931-2-1, a sub-section 1, entitled "Subsection 1: Administrative approval of insurance institutions and unions", including articles R. 931-2-1 to R. 931-2-4;
2° In article R. 931-2-1, the words: "The administrative approval provided for in article L. 931-4 is granted by the Authority for prudential control and resolution. For the grant of approval, "are replaced by the words: "For the grant of the approval provided for in Article L. 931-4,"
3° Section R. 931-2-2 is replaced by the following provisions:
"Art. R. 931-2-2.-Subject to the provisions of this section, sections R. 321-1-1 to R. 321-5, R. 321-14 and R. 321-16 to R. 321-18 of the Insurance Code apply to institutions of foresight and unions referred to in Article L. 931-4.
"For the purposes of the previous paragraph, the reference is "R. 321-1 of the insurance code “is replaced by the reference: “R. 931-2-1 of Social Security Code “and it is necessary to hear “an institution of foresight or union referred to in Article L. 931-4” where is mentioned in the insurance code the word: “company”, “the accession to a regulation or the collective contract” where is mentioned in the insurance code the word: “contract”, “the institutions of foresight and unions mentioned in article L. 931-4” where is mentioned: “the companies mentioned in the 1st, 3rd and 4th of article L. 310-2”, “the risks mentioned in the a and b of Article L. 931-1 of the Social Security Code “where is mentioned: “the risks mentioned in 1° and 2° of Article L. 310-1” and “accreditations mentioned in Article L. 931-4” where is mentioned: “accreditations mentioned in Articles L. 321-1, L. 321-7 and L. 321-9”.
4° Articles R. 931-2-3 and R. 931-2-5 are repealed;
5° After section R. 931-2-5, a sub-section 2 is inserted entitled: "Subsection 2: Administrative approval of reinsurance institutions and unions, including articles R. 931-2-5-1 to R. 931-2-5-3;
6° In article R. 931-2-5-1, the words: "The administrative approval provided for in article L. 931-4-1 is granted by the Authority for prudential control and resolution. For the grant of this approval, "are replaced by the words: "For the grant of the approval provided for in Article L. 931-4-1,"
7° In section R. 931-2-5-2, the words: "as defined in section L. 933-2 of this code" are replaced by the words: "as defined in the meaning of 3° of Article L. 517-2 of the monetary and financial code » ;
8° After article R. 931-2-5-2, an article R. 931-2-5-3 is inserted as follows:
“Art. R. 931-2-5-3.- Subject to the provisions of this section, articles R. 321-5-2 and R. 321-5-3 and R. 321-26 to R. 321-29 the insurance code shall apply to institutions of foresight and unions referred to in Article L. 931-4-1.
"For the purposes of the preceding paragraph, it is necessary to hear: "the institutions and unions referred to in Article L. 931-4-1" where is mentioned in the insurance code “any undertaking referred to in the 1st of the III of Article L. 310-1-1” and “accreditations referred to in Article L. 931-4-1” where is mentioned: “accreditations referred to in Article L. 321-1-1”. » ;
9° Sections R. 931-2-6 to R. 931-2-11 are repealed.
III.-Section 3 of Chapter 1 of Book 9 title 3 of the same code is amended as follows:
1° Sub-section 1 becomes sub-section 2 entitled "Sub-section 2: Governance";
2° Article R. 931-3-1 is supplemented by three paragraphs as follows:
"The board of directors is composed by seeking a balanced representation of women and men.
"The proportion of administrators of each sex cannot be less than 40% in pension institutions and unions that employ, for three consecutive years, an average number of at least two hundred and fifty permanent employees and have a net turnover or a total of at least 50 million euros.
"Any designation in violation of the previous paragraph and not having the effect of remedying the irregularity of the composition of the board is null and void. This nullity does not result in the deliberations that the irregularly designated administrator took part in. » ;
3° The third paragraph of Article R. 931-3-2 is amended as follows:
(a) The words: "R. 931-1-3 are either elected, for each of the two colleges, on the one hand, by the members or the adhering delegates of the General Assembly, on the other hand, by the members or participating delegates of the General Assembly, or" are replaced by the words: "R. 931-1-3 are";
(b) The words: ", at last, and under the same conditions, on the one hand, appointed by these same organizations and, on the other, elected by the General Assembly. In the latter case, the number of elected administrators cannot, for each college, exceed half of the total number of administrators" is deleted;
4° R. 931-3-3 is replaced by the following provisions:
“(b) Either on the basis of an agreement between the representative organizations of each of the two colleges, which determines the number of seats of each organization; »
5° In R. 931-3-4, after the words: "are elected" are added the words: "or designated";
6° Article R. 931-3-5:
(a) In the first paragraph, the word "six" is replaced by the word "four";
(b) It is added to the text:
"The directors may be revoked at any time by the organization that appointed them. » ;
7° The last paragraph of section R. 931-3-8 is replaced by the following:
"The terms of reference for the administrator of the institutions of foresight or unions of institutions of foresight held in parity organizations that are part of a group defined to theArticle L. 356-1 of the Insurance Code only count for one term. » ;
8° A Article R. 931-3-10:
(a) In the first paragraph, the words: "or, where the administrator has been designated by a trade union organization, by resignation of the trade union organization of employers or employees represented or withdrawal of the term" are replaced by the words: ", by resignation of the trade union organization of employers or employees represented or by withdrawal of the term";
(b) In the second paragraph, the words: "The positions of directors whose appointment or renewal has been the subject of an opposition by the Authority of prudential control and resolution under the conditions mentioned in the III of Article L. 612-23-1 of the monetary code" are replaced by the words: "The posts of directors whose continuation of the mandate has been the subject of a prudential objection by the Autorité de contrôle V of Article L. 612-23-1 of the Monetary and Financial Code » ;
9° In R. 931-3-10-1, the reference "L. 931-9" is replaced by the reference "L. 931-7-2".
10° Section R. 931-3-11 is replaced by the following provisions:
"Art. R. 931-3-11.-The board of directors shall determine the direction of the activity of the planning institution or the union of contingency institutions as defined in Article L. 931-1 and shall ensure their implementation. It also determines the policy of social action of the institution or union. It sets out the budget, accounts and management report.
"Subject to the powers expressly assigned, as appropriate, by the laws and regulations, to the parity board, to the general assembly or to the employer and to the interested and within the limits of the social object, it shall take up any matter of interest to the proper functioning of the institution of foreseeance or union and shall, by its deliberations, settle the matters that concern it.
"In respect of third parties, the institution of foresight or union is engaged even by the acts of the board of directors that do not fall under the social object, unless it proves that the third party knew that the act exceeded that object or that it could not ignore it in the circumstances, the only publication of the statutes did not suffice to form that evidence.
"The Board of Directors conducts the controls and audits that it considers appropriate. The Chair of the Board of Directors, or if not the Vice President of the Board of Directors, or the Director General is required to communicate to each director all the documents and information necessary to carry out his or her mission.
"The bonds, endorsements and guarantees given by institutions or unions are subject to an authorization of the board under the conditions of theArticle R. 225-28 of the Commercial Code.
11° In the last paragraph of R. 931-3-12, the word "mantat" is replaced by the word "mantat";
12° Section R. 931-3-13 is replaced by the following provisions:
"Art. R. 931-3-13.-The board of directors shall deliberate annually on the policy of the institution of foresight or union in respect of professional equality and pay. In institutions of foresight or unions to prepare the report on the comparative situation of the general conditions of employment and training of women and men in the enterprise provided for in theArticle L. 2323-57 of the Labour Code and in those who implement a plan for professional equality between women and men referred to in Article L. 1143-1 of the same code, it deliberates on that basis. » ;
13° After article R. 931-3-14, an article R. 931-3-14-1 is inserted as follows:
"Art. R. 931-3-14-1.-The statutes of the planning institution or union determine the rules relating to the convocation and deliberations of the board of directors.
"When it has not met for more than four months, at least one third of the board members may ask the chair to call the board on a specific agenda.
"The Director General may also request the Chair to convene the Board of Directors on a specific agenda.
"The Chair is bound by the requests addressed to him under the two preceding paragraphs. » ;
14° Section R. 931-3-18 is replaced by the following provisions:
"Art. R. 931-3-18.-The Chair of the Board of Directors or, if not, the Vice-Chair shall organize and direct the work of the Board of Directors, which shall be reported to the General Assembly or the Joint Committee. It ensures the proper functioning of the organs of the planning institution or the union and in particular ensures that administrators are able to fulfill their mission. » ;
15° Articles R. 931-3-19 and R. 931-3-20 are repealed;
16° Articles R. 931-3-21, R. 931-3-22 and R. 931-3-23, respectively, become R. 931-3-19, R. 931-3-20 and R. 931-3-21, as amended:
(a) At the beginning of the new article R. 931-3-20 the words: "Unfortunately the contract is null and void, leaders as defined in the second paragraph of article R. 951-4-1" are replaced by the words: "Unfortunately the contract is null and void, directors, director general and managing directors are prohibited";
(b) The last sentence of the new article R. 931-3-21 is replaced by the sentence: "Any contrary clause is deemed unwritten and any decision to the contrary is null and void. » ;
17° Paragraph 3, renumber as paragraph 4, and after section R. 931-3-21, a new paragraph 3, read as follows:
“Paragraph 3
« Direction générale
"Art. R. 931-3-22. -The general direction of the planning institution or union shall be assumed, under the control of the board of directors and within the direction of the board of directors, by a natural person appointed by the board of directors and bearing the title of Director General.
"The Board of Directors shall appoint, on the proposal of the Director General, one or more natural persons to assist the Director General with the title of Director General Delegate.
"The statutes set the maximum number of delegated directors general, which cannot exceed five.
"The Board of Directors determines the remuneration of the Director General and Delegate General Directors and sets out the terms and conditions of their work contract where applicable.
"No remuneration directly or indirectly related to the amount of contributions made by the "pre-vency institution or union may be allocated to a Director General or to a Director General.
"Previous provisions do not hinder the institution of a collective interest of the employees of the company under the conditions provided by theOrder No. 86-1134 of 21 October 1986 Amended relative to the interest and participation of employees in the company's results and ownership.
"Art. R. 931-3-22-1.-The Director General is revocable at any time by the Board of Directors. The same is true, on the proposal of the Director General, the delegated Director General(s). If the revocation is decided without just cause, it may result in damages.
"When the Director General ceases or is unable to perform his or her duties, the delegated Director General(s) shall, unless the Board of Directors decides otherwise, retain their functions and duties until the new Director General is appointed.
"In the event that the Executive Director or the Executive Director would have entered into a contract with the Provident Institution or union, his revocation does not have the effect of terminated the contract.
"Art. R. 931-3-22-2.-I.-The Director General is vested with the most extensive powers to act in any circumstance on behalf of the planning institution or the union. It exercises these powers within the limits of the social object and subject to the powers expressly assigned by law, the board of directors and, as the case may be, the joint commission or the general assembly.
"It represents the institution of foresight or union in its relations with third parties. The institution of foresight or union is engaged even by the acts of the Director General who do not fall under the social object, unless it proves that the third party knew that the act exceeded that object or could not ignore it in the circumstances.
"The provisions of the statutes or decisions of the board of directors limiting the powers of the Director General are unopposable to third parties.
"II.-In agreement with the Director General, the Board of Directors determines the extent and duration of the powers conferred on Delegate Directors General.
"Delegated Directors General shall have the same powers with respect to third parties as the Director General.
"Art. R. 931-3-22-3.-Any candidate for the functions of Director General or Associate Director General of a Provident Institution or a Union of Provident Institutions shall communicate to the Board of Directors the other functions that he or she performs on that date so that the Board may assess their compatibility with the functions of Director General of the institution or union.
"The Director General or the managing director of an institution or union must inform the board of directors of any other functions that may be entrusted to him. The Board shall decide within one month on the compatibility of these functions with those of Director General or Deputy Director General of the Provident Institution or Union.
"Art. R. 931-3-22-4.-The exercise of the functions of Director General or Associate Director General shall be subject to an age limit set by the statutes, which may not be less than the age specified in 1° of Article L. 351-8. If there is no express provision, it is equal to that age.
"Any appointment made in violation of the provisions of the preceding paragraph is void.
"When a Director General or Associate Director General reaches the age limit, he is deemed to be ex officio resigned. » ;
18° In new paragraph 4:
(a) Section R. 931-3-24 is replaced by the following provisions:
"Art. R. 931-3-24.-Any agreement directly or by person interposed between a contingency institution or a union of pension institutions, or any legal person to whom it has delegated all or part of its management, and its Director General, one of its delegated directors General, one of its directors or, if any, its participating undertaking within the meaning of the 3rd of the pre-order code L. 356-1 shall be
"The same is true of the conventions to which one of the persons mentioned in the preceding paragraph is indirectly interested.
"It is also subject to prior authorization to the agreements between an institution of foresight or a union and any legal person, if the Director General, one of the principals or one of the directors of the institution or union of foresight institutions is the owner, associate indefinitely responsible, manager, administrator, director, director general, member of the supervisory board or, in general, director of the legal person.
"The prior authorization of the board of directors is motivated by justifying the interest of the agreement for the planning institution or the union of contingency institutions, including by specifying the financial conditions attached to it";
(b) In the first paragraph of article R. 931-3-26 the words: "the responsibility of the interested leader" are replaced by the words: "the responsibility of the interested leader";
(c) In R. 931-3-27, the words: "The officer as defined in the second paragraph of R. 951-4-1" are replaced by the words: "The administrator or the officer";
(d) The last paragraph of section R. 931-3-28 is replaced by the following provisions:
"Even in the absence of fraud, the prejudicial consequences to the institution of foresight or the union of institutions of foresight of the disapproved conventions may be borne by the person concerned and, possibly, by other members of the board of directors. » ;
19° At sub-section 2:
(a) The title of subsection 2 is deleted;
(b) Paragraph 1 becomes paragraph 5, entitled: "Paragraph 5: General provisions and powers of the Joint Commission, the employer and the general assembly";
(c) Paragraph 2 (former), renumber as paragraph 6, entitled “Paragraph 6: Composition and operation of general assemblies”;
20° After article R. 931-3-45, a paragraph 7 is added to read:
“Paragraph 7
“ Governance system applicable to foresight institutions and unions under the so-called solvency II regime”
"Art. R. 931-3-45-1.-The requirement of jurisdiction referred to in Article L. 931-7 shall be assessed in accordance with Article 258 of the Delegated Regulation (EU) No. 2015/35 of the Commission of 10 October 2014, without prejudice to Article R. 931-3-10-1 of this Code.
"Art. R. 931-3-45-2.-The provisions of Chapter IV of Title V of Book III of the Insurance Code are applicable to the institutions of foresight and unions referred to in Article L. 931-6.
"Art. R. 931-3-45-3.-The Director General and the delegated Director General shall effectively direct the planning institution or union within the meaning of Article L. 931-7-1.
"The board of directors may also, on the proposal of the Director General, designate one or more physical persons as an effective officer, who are not mentioned in the preceding paragraph. These persons must have a sufficiently broad area of competence and authority over the activities and risks of the planning institution or the union, demonstrate sufficient availability within the planning institution or the union to exercise that role, and be involved in decisions having a significant impact on the planning institution or the union, including in terms of strategy, budget or financial matters. On the proposal of the Director General, the Board of Directors may withdraw this function.
"The board of directors defines cases in which the actual leaders are absent or prevented in order to ensure continuity of the effective direction of the planning institution or the union. » ;
21° At subsection 3:
(a) The title of this subsection is replaced by the following title: "Subsection 3: Prudential and Financial Plan";
(b) In R. 931-3-49, the reference: "R. 931-22" is replaced by the reference: "L. 931-22";
22° At subsection 4:
(a) The title of subsection 4 of section 3 is deleted;
(b) In sections R. 931-3-52 and R. 931-3-53, the words "leaders, within the meaning of the second paragraph of section R. 951-4-1," are replaced by the words "administrator, director general or managing director";
(c) In R. 931-3-60, the references: "L. 422-4 and L. 432-5 of the Labour code are replaced by the references: "L. 2313-14, L. 2323-78 to L. 2323-82 of Labour code » ;
(d) In article R. 931-3-64, the words: "by the leaders as defined in the second paragraph of article R. 951-4-1" are replaced by the words: "by the administrators, the Director General or the delegated directors General";
IV.-Section 4 of Chapter 1 of Book 9 title 3 of the same code is amended as follows:
(a) Articles R. 931-4 and R. 931-4-2 are repealed;
(b) In R. 931-4-1, the reference: "L. 931-30" is replaced by the reference: "L. 932-23-3".
V.-A Section 5 of Chapter 1 of Book 9 title 3 of the same code:
1° The title of this section is replaced by the following title:
“Section 5
"Reliance, safeguard and remediation, dissolution and liquidation
2° Articles R. 931-5-1, R. 931-5-2 and R. 931-5-3 are replaced by the following:
"Art. R. 931-5-1.-Hormises the cases of fusion and splitting, the institution of foresight or the union of foresight institutions is in liquidation at the moment of its dissolution for any cause. Its name is followed by the mention: “an institution of planning in liquidation” or “a union of planning institutions in liquidation”. This mention and, where applicable, the name of the liquidator(s) or the agent of justice are on all acts from the institution or union intended for third parties.
"The moral personality of the institution or union remains for the needs of the liquidation until the closure of the institution.
"Art. R. 931-5-2.-The early dissolution of an institution of foresight or a union of institutions of foresight is pronounced in the form provided for in the first paragraph of Article R. 931-3-30.
"Art. R. 931-5-3.-In the event of the agreement or collective agreement, the agreement ratified by the majority of the parties concerned or the minutes of the deliberation of the general assembly shall be transmitted within eight days of the declaration of the dissolution of the institution of foresight or of the union of institutions of foresight to the Autorité de contrôle prudentiel-6, » ;
3° After article R. 931-5-3, two articles R. 931-5-4 and R. 931-5-5 are inserted as follows:
"Art. R. 931-5-4.-Chapter V of Title II of Book III of the Insurance Code applies to the institutions of foresight and unions referred to in Articles L. 931-4 and L. 931-4-1.
"For the purposes of the preceding paragraph, it is necessary to hear: "an institution of foresight or union" where is mentioned in the insurance code : “company”.
"Art. R. 931-5-5.-When a liquidation procedure is opened pursuant to Article L. 931-18, the liquidator shall promptly and individually inform by a written note each known creditor who has his habitual residence, domicile or head office in a Member State other than France.
"The contents and format of the note are fixed by order of the Minister for Social Security. »
4° Articles R. 931-5-1-1 to R. 931-5-1-9 and R. 931-5-6 to R. 931-5-9 are repealed;
VI.-Sections 6 and 7 of Chapter 1 of Title 3 of Book 9 of the same Code are repealed.
VII.-In section 9 of chapter 1 of Book 9, title 3 of the same code, section R. 931-9-1 is amended as follows:
1° At 1°, the words "R. 931-3-21 (third paragraph)" are replaced by the words "R. 931-3-19 (third paragraph)", the words "R. 931-5-7 (last paragraph)" are deleted, the reference: "R. 931-10-2" is replaced by the reference: "R. 331-1 of the insurance code", the reference: "R. 931-10-2" is replaced
2° At 2°, the words: "Articles R. 931-5-1, R. 931-5-1-2, R. 931-5-1-4, R. 931-5-2 and R. 931-5-3" are replaced by the words: "Article R. 335-1 of the insurance code";
3° In the last paragraph, the words: "Members of the Board of Directors, Directors General, Directors and any de facto officer of an institution or union" are replaced by the words: "Members of the Board of Directors, the Director General, the delegated Director General, Directors and any de facto officer of an institution or union".
VIII.-Section 10 of Chapter 1 of Book 9 title 3 of the same code is repealed.
IX.-A Section 11 of Chapter 1 of Book 9 Title 3 of the same Code:
1° Section R. 931-11-1 is replaced by the following provisions:
"Art. R. 931-11-1.-The provisions of Title IV of Book III of the Insurance Code, with the exception of Chapter IV, apply to foresight institutions and unions of contingency institutions.
"For the purposes of this section, it is necessary to hear: "participation in surpluses" where is mentioned in the insurance code : “participation in profits” , “assessments” where is mentioned : “premises” , “benefits to be paid” where is mentioned : “shortfalls to be paid” , institutions of foresight and unions” where is mentioned : “insurance companies” , “insurance” a of Article L. 931-1 of the Social Security Code “where is mentioned: “the operations mentioned in the 1st of Article L. 310-1”, “the operations mentioned in the a and b of Article L. 931-1 of the Social Security Code “where is mentioned: “the transactions mentioned in 1° and 2° of Article L. 310-1”, “assessment” where is mentioned: “primary”, “the institution of foresight or union” where is mentioned: “the insurer”. » ;
2° Articles R. 931-11-2 to R. 931-11-8 are repealed;
3° Section R. 931-11-9 is replaced by the following provisions:
"Art. R. 931-11-9.-I.-The assessment referred to in section L. 931-32 is a percentage of the value of all investments belonging to the pension or union institution and of those of other assets affecting the representation of regulated commitments, assessed in accordance with the provisions of section R. 343-11 of the Insurance Code. For pension institutions and unions referred to in Article L. 931-6, the other assets include claims on participating members, reinsurers and deferred acquisition costs.
"This percentage is at least equal to the result obtained by dividing by this value the sum of the following amounts:
“(a) Assets for transactions under Article L. 932-24, assessed in accordance with Article R. 343-11 of the Insurance Code;
“(b) Investments for the representation of transactions in units of account in which the insured amount is determined in relation to a reference value and assessed in accordance with last paragraph of Article R. 332-5 of the Insurance Code ;
"(c) Assets transferred with a portfolio of adhesion bulletins to a regulation or contract, assessed as described in section R. 343-11 of the insurance code;
"(d) Amount of gross technical provisions for reinsurance constituted under the operations carried out by the contingency institution or union for branches 20 to 22 and 24 to 26 of article R. 931-2-1 other than those mentioned in a and b and diminished the amount of the assets referred to in c, assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code;
“e) A percentage, defined in the II of this section, of the difference between the value, on the one hand, assessed in accordance with section R. 343-11 of the insurance code, on the other hand, that assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code, of all investments belonging to the insurance institution or union and of those of other regulated assets that are affected by the representation c For pension institutions and unions referred to in Article L. 931-6, the other assets include claims on participating members, reinsurers and deferred acquisition costs.
"II.-The percentage referred to in e of this article is 85% of quotient A/B, with:
"A.-Meaning of the gross technical provisions of reinsurance constituted under all transactions carried out by the planning institution or the union other than those mentioned in (a) and (b) of this article or that are related to collective transactions in the event of death or, for the institutions of foresight or registered unions to practice simultaneously the transactions referred to in (a) and (b) of Article L. 93-10,
"B.-Meaning of all investments belonging to the planning institution or the union and those of other assets affecting the representation of regulated commitments, other than those mentioned in a, b and c of I above, assessed in accordance with sections R. 343-9 and R. 343-10 of the insurance code. For pension institutions and unions referred to in Article L. 931-6, the other assets include claims on participating members, reinsurers and deferred acquisition costs.
"The average amounts referred to in the preceding paragraph are obtained by dividing by two the sum of the amounts recorded in the accounts at the opening and closing of the fiscal year.
"III.-The investments, assets and provisions mentioned in this section do not include those that are constituted by the planning institution or union as part of the operations carried out by its branches located abroad.
"IV.-In the event of a portfolio transfer, the value of the transferred assets cannot exceed the value resulting from their valuation in accordance with the provisions of Article R. 343-11 of the Insurance Code. »
X.-A Section 12 of Chapter 1 of Book 9 Title 3 of the same Code:
1° In R. 931-12-1, the references: "L. 931-2 and L. 931-4" are replaced by the references: "L. 931-4 and L. 931-4-1";
2° A Article R. 931-12-3, the reference: "L. 951-15" is replaced by the reference: "L. 951-36-1" and the words: "of the prudential and resolution control authority established in Article L. 951-1" are replaced by the words: "of the prudential and resolution control authority referred to in Article L. 951-1";
3° In article R. 931-12-4, in the first paragraph, the words: "The Authority of Control established in article L. 951-1" are replaced by the words: "The Authority of prudential control and resolution" and in the second and third paragraphs, the words: "the Authority of Control" are replaced by the words: "the Authority";
4° In R. 931-12-5, the words: "Article L. 951-16" are replaced by the words: "Article L. 931-36-2 of which";
5° A Item R. 931-12-6, the reference: "L. 951-16" is replaced by the reference: "L. 931-36-2" and the references: "L. 931-21-3 and L. 931-21-4" are replaced by the references: "L. 326-12 and L. 326-13 of insurance code » ;
6° In R. 931-12-7, the reference: "L. 951-15" is replaced by the reference: "L. 951-36-1" and the reference: "L. 951-16" is replaced by the reference: "L. 931-36-2";
7° In R. 931-12-11, the reference: "L. 951-10" is replaced by the reference: "L. 612-39 of monetary and financial code » ;
8° In R. 931-12-13, the reference: "L. 951-16" is replaced by the reference: "L. 931-36-2";
9° Article R. 931-12-14 is repealed;
10° The last paragraph of section R. 931-12-15 is repealed.
XI.-Section 13 of Chapter 1 of Title 3 of Book 9 of the same Code is repealed.
XII.-Chapter II of Book 3 of the same Code is amended as follows:
1° In article R. 932-1-3, after the words: "Articles L. 912-1" are inserted the words: "in his writing before the Act No. 2013-1203 of 23 December 2013 » ;
2° In R. 932-3-1, the words "of section R. 931-10-21 of this code" and "of section R. 931-10-21" are replaced by the words "of section R. 332-2 of the insurance code";
3° Articles R. 932-5-1 to R. 932-5-4 are repealed;
4° In the second paragraph of Article R. 932-5-6, the words: "at 1° to 5° of Article L. 931-9" are replaced by the words: "at 1° to 3° of Article L. 931-7";
5° Section R. 932-5-9 is replaced by the following provisions:
"Art. R. 932-5-9.-The report referred to in the last paragraph of Article L. 932-45 is forwarded to the Autorité de contrôle prudentiel et de résolution. » ;
6° In R. 932-5-10, the words: "established in Article L. 951-1" are replaced by the words: "specified in Article L. 951-1" and the words: "with respect for the provisions of this Code" and: "with respect for this Code" are replaced by the words: "with respect for the provisions of this Code" insurance code » ;
7° In the first alienation of Article R. 932-5-11, the words: "established in Article L. 951-1" are replaced by the words: "specified in Article L. 951-1";
8° Section 6 is repealed;
9° In R. 932-7-2, the reference: "R. 931-10-12" is replaced by the reference: "R. 343-1 of insurance code » ;
10° In R. 932-7-4, the reference: "R. 931-10-17" is replaced by the reference: "R. 343-3 of insurance code » ;
11° Section R. 932-7-6 is repealed.
XIII.-Chapter III of Book 9, title 3 of the same code is repealed.
XIV.-The title 4 of Book 9 of the same code is amended as follows:
1° In the second paragraph of article R. 941-2, the words "as well as title V of this book" are deleted;
2° In the first paragraph of article R. 941-4, the words: ", accompanied if any of the decision of that authority approving the amendments made to its regulation under the conditions provided for by the VI of Article 116 of Act No. 2003-775 of 21 August 2003 reforming pensions" are abolished;
3° In R. 941-5, the references: "R. 931-7-1 to R. 931-7-3" are replaced by the references: "R. 931-5-1 to R. 931-5-3";
4° Section R. 941-6 is repealed.
XV.-The title 5 of Book 9 of the same code is amended as follows:
1° Chapter 1 and Chapter 2 are repealed;
2° The title of Chapter 4 is deleted;
3° In the last paragraph of section R. 951-4-1, the words: "the members of the board of directors, the directors general, the directors and any de facto directors of an institution or union" are replaced by the words: "the members of the board of directors, the director general, the delegated director(s) and any de facto officer of an institution or union".
With the exception of Article 20, the provisions of this Title refer to the provisions of insurance code, monetary and financial code, code of mutuality and Social Security Code, in their writing from theOrder dated April 2, 2015 and articles 1 to 14 of this decree.
For all of the provisions of this title, with the exception of sections 19 and 21, the term "business" refers to the insurance and reinsurance organizations mentioned in the Articles L. 310-3-1 of the Insurance Code, L. 211-11 of the mutuality code and L. 931-6 of the Social Security Code.
I. - Effective from the publication of this decree, the Autorité de contrôle prudentiel et de résolution may approve:
1° Subsidiary own funds of an enterprise or an intermediate insurance group corporation, in accordance with the provisions of sections R. 351-20 and R. 356-16 of the insurance code;
2° The use of an internal model by a group, in accordance with the provisions of Articles R. 356-20 to R. 356-20-3 of the same code;
3° The classification of the equity elements carried out by the companies, in accordance with the provisions of Article R. 351-24 of the same code;
4° Settings specific to a company, in accordance with the provisions of Article R. 352-5 of the same code;
5° The use by a company of the submodule “risks on shares” based on the duration, in accordance with the provisions provided for in article R. 352-12 of the same code;
6° The application by a company of the adjustment equalizer to the curve of the relevant risk-free interest rates, in accordance with the provisions set out in sections R. 351-4 and R. 351-5 of the same code.
By derogation from the provisions of articles R. 351-16, R. 351-17, R. 351-24 and R. 352-12 of the same code, the Authority shall decide on the approvals provided for in these articles:
(a) Within six months, for requests received before 30 September 2015;
(b) Within a current period until March 31, 2016 for applications received between October 1, 2015 and December 31, 2015.
In order to give the above-mentioned approvals, the Autorité de contrôle prudentiel et de résolution is based on the criteria and rules defined under Book III of the Insurance Code.
II. - Effective July 1, 2015, the Autorité de contrôle prudentiel et de résolution may:
1° Decide, as a group controller, as defined in theArticle L. 356-1 of the Insurance Code deduct any participation, in accordance with the provisions of Article R. 356-17 of the same code;
2° Determine, as a group controller, as defined in Article L. 356-1 of the same code the choice of method of calculating solvency of the group, in accordance with the provisions of Article R. 356-10 of the same code;
3° Determine equivalence, as appropriate, in accordance with the provisions of articles R. 356-6 and R. 356-23 of the same code;
4° Submit insurance and reinsurance companies to the provisions of sections R. 356-26 and R. 356-27 of the same code, in accordance with the provisions of article R. 356-24 of the same code;
5° To make the decisions referred to in Article R. 356-7 of the Insurance Code.
The Autorité de contrôle prudentiel et de résolution, for the purposes of 1° to 5° with regard to the criteria and rules defined in title V of Book III of the insurance code.
III. - The decisions taken by the Autorité de contrôle prudentiel et de résolution en application des I et II take effect from 1 January 2016.
I. - Transient information to be forwarded to the prudential and resolution control authority during the opening of the 2016 fiscal year, pursuant to Article 314 of the Commission's Delegated Regulation (EU) No 2015/35 of 10 October 2014, is approved by the Director General, the Director General or by the operational officer referred to in the Commissionarticle L. 211-14 of the mutuality code.
Transient information that participating or mother companies mentioned in the second or third paragraph of Article L. 356-2 of the Insurance Code must forward to the Authority for prudential control and resolution at the opening of the 2016 fiscal year, pursuant to Article 375 of the Commission's Delegated Regulation (EU) No. 2015/35 of 10 October 2014, are approved by the Director General or the Director General of the companies concerned or by the operational officer mentioned in the Commissionarticle L. 211-14 of the mutuality code.
II. - Until the year ending no later than 31 December 2020, the information referred to in Article R. 355-8 of the insurance code regarding the additional capital requirement imposed pursuant to Article L. 352-3 of the same code, or the effect of the specific parameters that the company is required to use under Article R. 352-11 of the same code shall not be subject to separate publication.
Until the fiscal year ending no later than 31 December 2020, the provisions referred to in Article R. 356-56 of the insurance code relating to the additional capital requirement imposed pursuant to Article L. 356-16 of the same code, or the effect of the specific parameters that the participating or mother company mentioned respectively in second or third paragraph of Article L. 356-2 of the Insurance Code is required to use under section R. 356-19 of the same code shall not be subject to separate publication.
Without prejudice to provisions of Article L. 356-15 of the Insurance Codethe transitional provisions of articles R. 351-27, R. 352-27 and R. 353-3 the insurance code applies to solvency at the group level.
For insurance companies not operating the transactions mentioned in the 1° of Article L. 310-1 of the Insurance Code, for reinsurance companies mentioned in theArticle L. 310-1-1 of the Insurance Code, for mutual or unions governed by Book II of the Code of Mutuality not contracting commitments defined to b of 1° of Article L. 111-1 of the mutuality code and for welfare institutions and their unions governed by title 3 of Book 9 of the Social Security Code that do not perform the operations referred to in a of Article L. 931-1 of the Social Security Codethe amount of the capitalization reserve at the end of December 31, 2015 is transferred to the "other reserves" account.
For registered insurance companies to practice both the transactions mentioned in 1° and 2° of Article L. 310-1 of the Insurance Codemutuals or unions approved to contract both commitments defined in a and b of 1° of Article L. 111-1 of the mutuality code and institutions of foresight and their registered unions to practice both the operations mentioned in the a and b of Article L. 931-1 of the Social Security Code, and meeting the conditions of section R. 343-16 of the insurance code, the amount of capitalization reserve at the end of December 31, 2015 is transferred to the "other reserves" account.
I.Article R. 332-3 of the Insurance Code, it is inserted an e as follows:
“e) The loans mentioned in the fourth paragraph of Article R. 332-13."
II. - At the c of the 2nd of Article 1 of the decree of February 23, 2015 referred to above, the words "the last paragraph" are replaced by the words "the penultimate paragraph of I".
I. - The provisions of the last three paragraphs of Article R. 931-3-1 of the Social Security Code apply no later than January 1, 2020. Compliance with these provisions of the composition of the boards of directors of the institutions of foresight, unions and the societies of the insurance group of social protection concerned is appreciated at the end of the first general meeting that follows this date.
II. - By derogation from I, the proportion of administrators of each sex cannot, as of January 1, 2016 be less than 30% in pension institutions, unions and social insurance companies, which for the third consecutive fiscal year employ an average number of at least five hundred permanent employees and have a net turnover or a balance of at least 50 million euros. Compliance with this provision of the composition of the boards of directors of the institutions of foresight, unions and the societies of the insurance group of social protection concerned is appreciated at the end of the first general meeting that follows this date.
III. - The provisions of Articles R. 931-3-2, R. 931-3-5 and R. 931-3-8 of the Social Security Code apply to any renewal of the composition of the boards of directors of the welfare institutions, unions and social welfare insurance companies operating on or after January 1, 2016.
Articles R. 322-161 and R. 322-162 Insurance Code, R. 115-2 and R. 115-5 code of mutuality and R. 931-1-15 to R. 931-1-31 Social Security Code come into force from the day after the publication of this decree.
Subject to the provisions of Article 22, Articles 1 to 14, 17 to 19 and 21 of this Order come into force on January 1, 2016.
The Minister of Finance and Public Accounts and the Minister of Social Affairs, Health and Women ' s Rights are responsible for the implementation of this Order, which will be published in the Official Journal of the French Republic.
Done on May 7, 2015.
Manuel Valls
By the Prime Minister:
Minister of Finance and Public Accounts,
Michel Sapin
Minister of Social Affairs, Health and Women ' s Rights,
Marisol Touraine
