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Version status: Entered into force | Document consolidation status: Updated to reflect all known changes
Version date: 18 January 2015 - onwards
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Article 206 Adjustment for the loss-absorbing capacity of technical provisions

1. The adjustment for the loss-absorbing capacity of technical provisions shall be equal to the following:

AdjTP = - max(min(BSCR - nBSCR; FDB); 0)

where:

(a) BSCR denotes the Basic Solvency Capital Requirement referred to in Article 103(a) of Directive 2009/138/EC;

(b) nBSCR denotes the net Basic Solvency Capital Requirement as referred to in paragraph 2 of this Article;

(c) FDB denotes the technical provisions without risk margin in relation to future discretionary benefits

2. The net Basic Solvency Capital Requirement shall be calculated in accordance with Section 1, Subsection 1 to 7 of Chapter V with all the following modifications:

(a) where the calculation of a module or sub-module of the Basic Solvency Capital Requirement is based on the impact of a scenario on the basic own funds of insurance and reinsurance undertakings, the scenario can change the value of the future discretionary benefits included in technical provisions;

(b) the scenario based calculations of the life unde

Comparing proposed amendment...