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1. Member States shall ensure that resolution authorities have the power to place the undertaking under resolution in a solvent run-off procedure to terminate the activities of that undertaking, and to prohibit the undertaking under resolution to underwrite new insurance and reinsurance business.

2. Member States shall ensure that, in the event the authorisation has been withdrawn by the supervisory authority, the insurance or reinsurance undertaking to which the solvent run-off tool has been applied meets the Minimum Capital Requirement laid down in Title I, Chapter VI, Section 5, of Directive 2009/138/EC immediately following the application of that tool.

3. In the event of withdrawal of authorisation by the supervisory authority, Member States shall ensure that the insurance or reinsurance undertaking under the solvent run-off tool continues to be subject to the general rules and objectives of insurance supervision set out in Title I, Chapter III, of Directive 2009/138/EC, until termination of its activities in accordance with paragraph 8 of this Article.

4. Resolution authorities shall ensure that an insurance or reinsurance undertaking under resolution in a solvent run-off is capable of retaining adequately trained and competent staff to ensure the orderly continuation of its insurance activities in run-off until its liquidation.

5. Resolution authorities shall monitor, in close cooperation with supervisory authorities, the cash flow, as well as the costs and expenses of an insurance or reinsurance undertaking under resolution to preserve its value and marketability.

6. Resolution authorities shall, in close cooperation with supervisory authorities, assess intended changes to the composition of assets, monitor closely reinsurance arrangements and require, at least on a quarterly basis, independent actuarial reviews of the technical provisions and reserves.

7. In application of the solvent run-off tool, resolution authorities may restrict or prohibit any remuneration of equity and instruments treated as equity, including dividend payments, and may restrict or prohibit any payments of variable remuneration and discretionary pension benefits.

8. Resolution authorities shall take a decision that an undertaking under resolution in solvent run-off has to be wound-up in any of the following cases, whichever occurs first:

(a) all or substantially all of the assets, rights or liabilities of the undertaking under resolution in solvent run-off are sold to a third-party purchaser;

(b) the assets of the undertaking under resolution in solvent run-off are completely wound down and its liabilities are completely discharged.

9. Where the solvent run-off tool is used and where the net asset value of the undertaking under resolution in solvent run-off has become negative, the resolution authority shall assess whether to wind up the undertaking under normal insolvency proceedings or to apply another resolution tool. In the event the Minimum Capital Requirement laid down in Title I, Chapter VI, Section 5, of Directive 2009/138/EC is not met, the resolution authority shall assess, in close cooperation with the supervisory authority, whether the undertaking should be wound up under normal insolvency proceedings, or another resolution tool should be applied.