1.In the case of ring-fenced funds determined in accordance with Article 81(1), insurance and reinsurance undertakings shall adjust the calculation of the Solvency Capital Requirement following the method set out in Article 217.
2.However, an insurance or reinsurance undertaking that has received supervisory approval to apply Article 304 of Directive 2009/138/EC before 29 January 2027 to a ring-fenced fund shall not adjust the calculation in accordance with Article 217 of this Regulation, but base the calculation on the assumption of full diversification between the assets and liabilities of the ring-fenced funds and the rest of the undertaking.