(1) The financial supervision of an insurance undertaking, including the carrying on of insurance business either by way of services or through branches, shall be the sole responsibility of the home Member State.
(2) Where the head office of the insurance undertaking is situated in the State the Bank shall be responsible for verification with respect to the insurance undertaking's entire business, of its state of solvency, of the establishment and maintenance of technical reserves, including mathematical reserves, in accordance with the Insurance Acts and Regulations.
(3) Every insurance undertaking shall have and maintain sound and adequate administrative and accounting procedures and internal control mechanisms.
(4) Prior to entering into any transaction of a material nature with a related company or companies, including, in particular, the provision of loans to and acceptance of loans from a related company or companies, an insurance undertaking shall submit to the Bank a draft copy
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