Article 6

Transitional plan to extend the scope of the model

1.   In the case referred to in Article 113(2) of Directive 2009/138/EC, the supervisory authority shall explain the reasons for requiring a transitional plan and set the minimum scope which the internal model must cover after the implementation of the transitional plan.

2.   The transitional plan shall be approved by the administrative, management or supervisory body of the insurance or reinsurance undertaking and shall clearly identify the period for implementing the plan, the extension of the scope and the measures and resources necessary to extend the scope of the internal model. Supervisory authorities shall evaluate the plan presented by the undertaking. The supervisory authority may, where necessary, require an amended transitional plan, approved by the administrative, management or supervisory body, to be submitted for approval.

3.   When the undertaking fails to implement the transitional plan to extend the scope of the model, the supervisory authority may, without prejudice to any other available supervisory measures, take any of the following measures:

(a)	extend the time period to implement the plan;

(b)	extend the time period to implement the plan, subject to amendments to the plan;

(c)	require the insurance or reinsurance undertaking to calculate the Solvency Capital Requirement according to the standard formula set out in Articles 103 to 111 of Directive 2009/138/EC;

(d)	allow the use of a partial internal model with a more limited scope than the minimum scope referred to in paragraph 1.