1. A competent authority may require the full or proportional consolidation of a subsidiary or an undertaking in which an institution holds a participation where that subsidiary or undertaking is not an institution, financial institution or ancillary services undertaking pursuant to Article 18(8) of Regulation (EU) No 575/2013, provided that it carries out an assessment that verifies that the condition set out in Article 18(8), point (b), of Regulation (EU) No 575/2013 is being met. For that purpose, Article 4(2) and (3) of this Regulation shall apply.