Article 4
Decision to set a capital add-on
1. The supervisory authority shall notify in writing its decision to set a capital add-on to the insurance or reinsurance undertaking.
2. The decision of the supervisory authority shall be sufficiently detailed to enable the insurance or reinsurance undertaking to understand what measures it needs to take or what deficiencies it needs to remedy in order to have the capital add-on removed.
3. The decision referred to in paragraph 2 shall include:
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(a) |
the reasons for setting the capital add-on; |
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(b) |
the methodology for calculating the capital add-on and the amount of the capital add-on; |
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(c) |
the date from which the capital add-on is applicable; |
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(d) |
where relevant, the deadline by which the insurance or reinsurance undertaking is to remedy the deficiencies that led to setting the capital add-on; |
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(e) |
where relevant, the content and frequency of any progress report to be provided in accordance with Article 5. |