(1) Section 293, as it applies by virtue of Regulation 3, of the Principal Act (obligation to prepare group financial statements) shall also apply to a holding undertaking:
(a) which does not itself carry on any material business apart from the acquisition, management and disposal of interests in subsidiaries; and
(b) whose principal subsidiaries are wholly or mainly insurance undertakings.
(2) In paragraph (1) -
(a) the reference to the management of interests in subsidiaries includes a reference to the provision of services to subsidiaries; and
(b) "principal subsidiaries", in relation to a holding undertaking, means those subsidiaries of the undertaking whose results or financial position would principally affect the figures shown in the group financial statements.