(1) The Bank's role in exercising group supervision in accordance with Regulation 216 does not imply that it is required to play a supervisory role in relation to a third-country insurance undertaking, a third-country reinsurance undertaking, an insurance holding company, a mixed financial holding company or a mixed-activity insurance holding company taken individually, without prejudice to Regulation 261 as far as insurance holding companies or mixed financial holding companies are concerned.

(2) The Bank may, where it is group supervisor, decide on a case-by-case basis not to include an undertaking in the group supervision referred to in Regulation 216 where -

(a) the undertaking is situated in a third country where there are legal impediments to the transfer of the necessary information, without prejudice to the provisions of Regulation 232,

(b) the undertaking which should be included is of negligible interest with respect to the objectives of group supervision, or