Article 5

Decision on the application

1.   Where the supervisory authority decides to reject the application, it shall state the reasons on which the decision is based. The supervisory authority shall only approve the application if it is satisfied with the justification to replace a subset of parameters of the standard formula.

2.   When the supervisory authority has reached a decision on an application, it shall, without delay communicate this in writing to the insurance or reinsurance undertaking, in the same language as the application.

3.   The supervisory authority may decide to approve the application in respect of some but not all of the segments or of the parameters included in the application.