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New version applies from 30/01/2027 — introduced by Commission Delegated Regulation (EU) 2026/269. 173 provisions change. Article 234 changes in this version: compare with the current text.

Article 234 - Diversification effects

Article 234
Diversification effects

The system used for measuring diversification effects referred to in Article 121(5) of Directive 2009/138/EC shall only be considered adequate where all of the following conditions are met:

(a)

the system used for measuring diversification effects identifies the key variables driving dependencies;

(b)

the system used for measuring diversification effects takes into account all of the following:

(i)

any non-linear dependence and any lack of diversification under extreme scenarios;

(ii)

any restrictions of diversification which arise from the existence of a ring-fenced fund or matching adjustment portfolio;

(iii)

the characteristics of the risk measure used in the internal model;

(c)

the assumptions underlying the system used for measuring diversification effects are justified on an empirical basis.

Official text · consolidated version 14/11/2024 (in force) Open full page ↗
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