1. The Solvency Capital Requirement shall be calculated on the basis of each of the underlying assets of collective investment undertakings and other investments packaged as funds (look-through approach).
2. The look-through approach referred to in paragraph 1 shall also apply to the following:
(a) indirect exposures to market risk other than collective investment undertakings and investments packaged as funds;
(b) indirect exposures to underwriting risk;
(c) indirect exposures to counterparty risk.
3. Where Article 88 is complied with and the look-through approach cannot be applied to collective investment undertakings or investments packaged as funds, the Solvency Capital Requirement may be calculated on the basis of the target underlying asset allocation or, if the target underlying asset allocation is not available to the undertaking, on the basis of the last reported asset allocation, of the collective investment undertaking or fund, provided that, in either case, the underlying a
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