(1) The calculation of the group solvency shall take account of the proportional share held by a participating undertaking in its related undertakings.
(2) For the purposes of paragraph (1), the proportional share shall comprise either of the following:
(a) where method 1 is used, the percentages used for the establishment of the consolidated accounts;
(b) where method 2 is used, the proportion of the subscribed capital that is held, directly or indirectly, by the participating undertaking.
(3) But, regardless of the method used, where the related undertaking is a subsidiary undertaking and does not have sufficient eligible own funds to cover its Solvency Capital Requirement, the total solvency deficit of the subsidiary undertaking shall be taken into account.
(4) Despite paragraph (3), the Bank may, where it is the group supervisor, allow for the solvency deficit of the subsidiary undertaking to be taken into account on a proportional basis where in the opinion of the supervisory auth
…