(1) Article 4 of the Principal Regulations is hereby amended by the addition of the following after Article 4, subarticle (2) (b):
"(2A) For the purpose of these Regulations any permanent presence of an insurance undertaking in a member State shall shall be regarded as an agency or branch, even if that presence does not take the form of a branch or agency but consists merely of an office managed by the insurance undertaking's own staff or by a person who is independent but has permanent authority to act for the insurance undertaking in the same way as an agency."
(2) Article 4 of the Principal Regulations is hereby amended by the substitution, for subarticle (6), of the following:
(a) An undertaking which has its head office in another member State and is the holder of an authorisation granted by the supervisory authorities of that member State in respect of the carrying on of insurance business in the classes of the Annex to which the second Directive applies shall be deemed