1.For the purposes of demonstrating their ability to avoid forced selling of equity investments on an ongoing basis and under stressed conditions, as referred to in Article 105a(1), second subparagraph, point (d) of Directive 2009/138/EC, insurance or reinsurance undertakings shall use either of the following approaches:
the methodologies referred to in Article 171b of this Regulation to assess whether they can avoid forced sales; or
the forced selling test set out in Article 171c of this Regulation.
2.Insurance or reinsurance undertakings shall consistently apply the selected approach for the purposes of demonstrating compliance with Article 105a(1), second subparagraph, point (d) of Directive 2009/138/EC.
Notwithstanding the first subparagraph, insurance or reinsurance undertakings may change the selected approach where they demonstrate ex ante to the satisfaction of the supervisory authority that such change is justified, taking into account the risk profile of the undertaking, the amount of equity investments intended to be classified as long-term investments, and the nature, scale and complexity of the risks of the undertaking.