811

The formula in Guideline 17 does not take situations into account where solo undertakings have a gross SCR which is smaller than the net SCR. The factor with [grossSCR(solo) - netSCR(solo)] in the denominator should indeed be subject to a maximum function with zero: if grossSCR(solo) < netSCR(solo), then there is no LAC TP at solo level, the factor should be set to 0 to take this into account. Nevertheless the factor with the component [grossSCR(solo;sub-module) - netSCR(solo;sub-module)] should not be subject to a maximum function with zero: if grossSCR(solo) > netSCR(solo), but grossSCR(solo;sub-module) < netSCR(solo;sub-module), then this sub-module decreases the difference between the gross SCR(solo) and the net SCR(solo). To apply a maximum function on the sub-module component would unduly nullify this decrease at group level.