1.Member States may allow assurance undertakings which at the entry into force of this Directive provide assurance in their territories in one or more of the classes referred to in the Annex to Directive 79/267/EEC, a period of five years, commencing with the date of entry into force of this Directive, in order to comply with the requirements set out in Article 1 of this Directive.
2.Member States may allow any undertakings referred to in paragraph 1, which upon the expiry of the five-year period have not fully established the required solvency margin, a further period not exceeding two years in which to do so provided that such undertakings have, in accordance with Article 24 of Directive 79/267/EEC, submitted for the approval of the competent authorities, the measures which they propose to take for such purpose.