ANNEX II
Matching rules
The currency in which the assurer's commitments are payable shall be determined in accordance with the following rules.
1. | Where the cover provided by a contract is expressed in terms of a particular currency, the assurer's commitments are considered to be payable in that currency. |
2. | Member States may authorise assurance undertakings not to cover their technical provisions, including their mathematical provisions, by matching assets if application of the above procedures would result in the undertaking being obliged, in order to comply with the matching principle, to hold assets in a currency amounting to not more than 7 % of the assets existing in other currencies. |
3. | Member States may choose not to require assurance undertakings to apply the matching principle where commitments are payable in a currency other than the currency of one of the Member States, if investments in that currency are regulated, if the currency is subject to transfer restrictions or if, for similar reasons, it is not suitable for covering technical provisions. |
4. | Assurance undertakings are authorised not to hold matching assets to cover an amount not exceeding 20 % of their commitments in a particular currency. However, total assets in all currencies combined must be at least equal to total commitments in all currencies combined. |
5. | Each Member State may provide that, whenever under the preceding procedures a commitment has to be covered by assets expressed in the currency of a Member State, this requirement shall also be considered to be satisfied when the assets are expressed in euro. |