1. Where a Member State decides to allow the establishment within its territory of special purpose vehicles within the meaning of this Directive, it shall require prior official authorisation thereof.
2. The Member State where the special purpose vehicle is established shall lay down the conditions under which the activities of such an undertaking shall be carried on. In particular, that Member State shall lay down rules regarding:
- scope of authorisation;
- mandatory conditions for inclusion in all contracts issued;
- the good repute and appropriate professional qualifications of persons running the special purpose vehicle;
- fit and proper requirements for shareholders or members having a qualifying holding in the special purpose vehicle;
- sound administrative and accounting procedures, adequate internal control mechanisms and risk management requirements;
- accounting, prudential and statistical information requirements;
- the solvency requirements of special purpose vehicles