The overall assessment of the availability of own funds at group level according to Article 330 of the Delegated Regulation is carried out by the NCAs is subject to the supervisory review processes set out at national level.
The presumption of Article 330(3) is that there are specific own items that are not effectively available from day 1 unless the participating undertaking demonstrates otherwise. This implies that the participating undertaking and the insurance group should actively engage with the National Competent Authority (NCA) to ascertain if such own fund items assumed not available are considered under supervisory judgement as available to cover the group Solvency Capital Requirement.
The National Competent Authority has the right to establish its own supervisory review process to make such assessment under Article 330 of the Delegated Regulation. The outcome of such assessment could be formalised to confirm that own fund items presumed by the legislation as not available are now available, and it could also indicate if it is subject to on-going review.
Independently of who drives the process of assessing the availability of own funds, insurance groups should be able to demonstrate the availability and transferability of any own funds item.
As outlined on EIOPA Q&A438on a topic related to the assessment of availability of own funds “…it is required for groups to set out their own assessment of any items which might be deducted from own funds owing to any significant restriction affecting the availability, fungibility or transferability of own funds within the undertaking. This requirement is outlined by Article 297 (1) (h), Article 359 (e) (ii) and Article 372 (c) (xi) of the Delegated Regulation as well as Article 246 (4) of Solvency II Directive.
Groups should engage from an early stage with the group supervisors regarding any doubts on the availability and transferability of those own funds"