(1) An insurance undertaking which has commenced business by way of a branch establishment in the State before the coming into operation of provisions adopted in implementing these Regulations shall be presumed to have been subject to the procedure laid down in accordance with Article 10 (1) to (5) of the First Directive.

(2) A branch referred to in sub-article (1) of this Article shall, from the date of entry into force of provisions adopted in implementing these Regulations be subject to the relevant provisions laid down in accordance with these Regulations.