Instruction No. 2015-I-05 of May 29, 2015, regarding approval requests for the valuation and classification of unlisted own funds items, as amended by Instruction 2024-I-11 of October 21, 2024

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2015-I-05 dated May 29, 2015, regarding approval requests for the valuation and classification of unlisted own funds items, as amended by Instruction 2024-I-11 of October 21, 2024

The Prudential Control and Resolution Authority,

Having regard to the Monetary and Financial Code, particularly Articles L. 612-2 and L. 612-24;

Having regard to the Insurance Code, particularly Article L. 351-6 as amended by Ordinance No. 2015-378 of April 2, 2015, and Articles R. 350-1, R. 351-18 to R. 351-25 as amended by Decree No. 2015-513 of May 7, 2015;

Having regard to Delegated Regulation (EU) No 2015/35 of the Commission of October 10, 2014;

Having regard to Ordinance No. 2015-378 of April 2, 2015;

Having regard to Item 3° of I of Article 16 of Decree No. 2015-513 of May 7, 2015;

Having regard to the opinion of the Prudential Affairs Advisory Committee dated January 30, 2015;

Decides:

Article 1

The following are hereinafter referred to as "subject entities": undertakings subject to the so-called "Solvency II" regime mentioned in Articles L. 310-3-1 of the Insurance Code, L. 211-10 of the Mutual Code, and L. 931-6 of the Social Security Code, as amended by Ordinance No. 2015-378 of April 2, 2015.

Article 2

Subject entities that wish, in accordance with Article R. 351-24 of the Insurance Code as amended by Decree No. 2015-513 of May 7, 2015, and Article 79 of Delegated Regulation (EU) No 2015/35 of the Commission of October 10, 2014, to seek the approval of the Prudential Control and Resolution Authority for the valuation and classification of an item that is not among the own funds items mentioned in Articles 69, 72, 74, 76, and 78 of that delegated regulation, shall submit a file consisting of a presentation letter and supporting documents detailed in Annex 1 to this instruction.

The approval request to retain an unlisted supplementary own funds item must be made prior to the request made under the provisions of Article R. 351-20 of the Insurance Code as amended by Decree No. 2015-513 of May 7, 2015.

Article 3

The presentation letter mentioned in Article 2 must summarize the main characteristics of the approval request and must contain at minimum the following information regarding the item for which approval is sought:

• its monetary amount;
• its legal nature;
• the name and articles of association of all relevant counterparties, as well as any existing relationships between the undertaking and these counterparties, excluding counterparties that are non-significant or sufficiently homogeneous to be described collectively;
• the justification for the envisaged classification within Tier 1 or Tier 2 own funds and the envisaged level, with regard to the provisions contained in Articles 71, 73, and 77 of the delegated regulation, or the justification for the envisaged classification within supplementary own funds and the envisaged level, with regard to the provisions contained in Articles 75 and 78 of the delegated regulation.

It must also include the following statements, on behalf of the subject entity:

• there is no ambiguity in the legal or contractual conditions governing the item for which approval is sought, or in any other provision related thereto;
• in the current situation and taking into account foreseeable future developments, the potential own funds item respects, both in form and substance, the criteria retained for the requested classification, as resulting from Articles R. 351-22 and R. 351-23 of the Insurance Code as amended by Decree No. 2015-513 of May 7, 2015, as well as Articles 71, 73, and 77 of the delegated regulation;
• no fact has been omitted whose knowledge by the Prudential Control and Resolution Authority could influence its decision regarding the valuation and classification of the own funds item.

Article 4

The approval request file for the use of unlisted own funds items must be sent in electronic format to the Prudential Control and Resolution Authority by depositing it at the following address: https://acpr-portail.banque-france.fr.

Article 5

Following the approval of the valuation and classification of the concerned own funds items, subject entities must notify the Prudential Control and Resolution Authority without delay and in writing of any modification in the constituent elements of the initial approval request file or any element that could affect the valuation or classification of the concerned own funds.

If the modification or modifications are deemed significant by the Prudential Control and Resolution Authority, a new approval request file must be submitted.

Article 6

This instruction enters into force upon its publication.

Paris, May 29, 2015

The President of the Prudential Control Authority and Resolution, [Robert OPHÈLE]