
Article 1 

1. The supervisory authority shall notify the insurance or reinsurance undertaking concerned of its intention to set a capital add-on and the reasons for setting the capital add-on.
2. The supervisory authority shall set a deadline by which the insurance or reinsurance undertaking is to respond to the notification referred to in paragraph 1. The supervisory authority shall consider any information provided by the insurance or reinsurance undertaking before taking its decision.
Article 2 
If required by the supervisory authority, the insurance or reinsurance undertaking shall perform the calculation of the capital add-on in accordance with the specifications set by the supervisory authority.
Article 3 

1. The supervisory authority may request the insurance or reinsurance undertaking to provide information necessary for taking a decision on setting a capital add-on by a deadline set by the supervisory authority.
2. When determining the deadline referred to in paragraph 1, the supervisory authority shall pay particular attention to the likelihood and severity of any adverse impact on policyholders and beneficiaries.
3. The insurance or reinsurance undertaking shall immediately notify the supervisory authority if it cannot meet the deadline referred to in paragraph 1.
Article 4 

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:
(a) the reasons for setting the capital add-on;
(b) the methodology for calculating the capital add-on and the amount of the capital add-on;
(c) the date from which the capital add-on is applicable;
(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;
(e) where relevant, the content and frequency of any progress report to be provided in accordance with Article 5.
Article 5 
In the cases set out in Article 37(1)(b) and (c) of Directive 2009/138/EC and if requested by the supervisory authority, the insurance or reinsurance undertaking shall inform the supervisory authority about the progress it has made in remedying the deficiencies that led to the setting of the capital add-on and what relevant actions it has taken.
Article 6 

1. The supervisory authority shall review the imposed capital add-on if there is a material change in the circumstances that led to the setting of the capital add-on.
2. Following the review of the imposed capital add-on the supervisory authority shall maintain, change or remove the capital add-on.
Article 7 
When considering whether to maintain, change or remove the capital add-on the supervisory authority shall take into account any of the following:

((a)) information submitted by the insurance or reinsurance undertaking during the process of setting and calculating the capital add-on;
((b)) information obtained by the supervisory authority through the supervisory review process and through any subsequent supervisory activity;
((c)) information provided in the progress report if requested by the supervisory authority in accordance with Article 5;
((d)) any other relevant information indicating a material change in the circumstances that led to the setting of the capital add-on.
Article 8 

1. The supervisory authority shall notify in writing without delay its decision to change or remove the capital add-on and the effective date of that decision to the insurance or reinsurance undertaking.
2. Where the supervisory authority decides to change the capital add-on, it shall adopt a new decision in accordance with Article 4(2) and (3).
Article 9 
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 11 November 2015.
For the Commission
The President
Jean-Claude JUNCKER