Prudential Regulation Authority Rulebook

4.1

Except to the extent that provision for the deficit has been made (whether in the calculation of surplus assets or otherwise) in another affiliated company the value of whose shares is taken to be the value of its surplus assets under Friendly Society – Asset Valuation 5.1 or 5.2 (but only to the extent of the firm's proportional share of that undertaking), a firm must make provision in respect of a regulated affiliated company:

(1) where the affiliated company is also a subsidiary of the firm, for the whole of any solvency deficit; and

(2) in any other case, for the firm's proportional share of any such deficit.

4.2

For the purposes of 4.1, the identification and valuation of assets of a regulated affiliated company, available to cover liabilities and any capital requirement imposed by any relevant provisions of the PRA Rulebook or FCA Handbook, must be determined in accordance with Friendly Society – Asset Valuation 5.4.