(1) Where the parent undertaking referred to in Regulation 264 is itself a subsidiary undertaking of an insurance holding company or a mixed financial holding company with its head office outside the European Union or of a third-country insurance undertaking or third-country reinsurance undertaking, the Bank shall apply the verification provided for in that Regulation only at the level of the ultimate parent undertaking which is a third-country insurance holding company, a third-country mixed financial holding company, a third-country insurance undertaking or a third-country reinsurance undertaking.

(2) But the Bank may decide, in the absence of equivalent supervision referred to in Regulation 264, to carry out a new verification at a lower level where a parent undertaking of insurance undertakings or reinsurance undertakings exists, whether at the level of a third-country insurance holding company, a third-country mixed financial holding company, a third-country insurance undertaking or a third-country reinsurance undertaking.