Prudential Regulation Authority Rulebook

7.1

A third country branch undertaking must fulfil the following requirements laid down in Conditions Governing Business Part of the PRA Rulebook, as modified by 7.2, 7.3 and 7.4:

1. (1) Conditions Governing Business 1; and
2. (2) Conditions Governing Business 2.2 to 7.

7.2

1. (1) A reference to “SCR” is to be interpreted as a reference to “third country branch undertaking SCR”.
2. (2) A reference to “MCR” is to be interpreted as a reference to:
1. (a) for a UK-deposit insurer, the EEA MCR;
2. (b) for an EEA-deposit insurer, its minimum capital requirement calculated in accordance with the relevant Solvency II EEA implementing measures in the EEA State that supervises the solvency of the entire business of the branches within the EEA in accordance with Article 167 of the Solvency II Directive;
3. (c) for all other third country branch undertakings, the branch MCR.
3. (3) A reference to “technical provisions” is to be interpreted as a reference to:
1. (a) for a UK-deposit insurer, the EEA technical provisions;
2. (b) for an EEA-deposit insurer, its technical provisions calculated in accordance with the relevant Solvency II EEA implementing measures in the EEA State that supervises the solvency of the entire business of the branches within the EEA in accordance with Article 167 of the Solvency II Directive;
3. (c) for all other third country branch undertakings, the branch technical provisions.
4. (4) A reference to “function” is to be interpreted as a reference to the functions performed in relation to the operations effected by the third country branch and includes the function of authorised UK representative.
5. (5) A reference to “internal model” is to be interpreted as a reference to any internal model used by a third country branch undertaking to calculate the third country branch undertaking SCR.

7.3

A third country branch undertaking (except a UK-deposit insurer) must apply the requirements referred to in 7.1 taking account only of matters relevant to the operations effected by the third country branch.

7.4

A UK-deposit insurer must apply the requirements referred to in 7.1 taking account only of matters relevant to the operations effected by the third country branch and all the third country undertaking EEA branches.

[Note: Art. 162(2) of the Solvency II Directive]