Cap. 403 Art. 18Non-Compliance with Minimum Capital Requirement.

(1) An authorised insurance or reinsurance undertaking which fails to comply with article 17 shall immediately inform the competent authority where it observes that the Minimum Capital

Requirement is no longer complied with or where there is a risk of non-compliance in the following three months.

(2) Within one month from the observation of non-compliance with the Minimum Capital Requirement, the undertaking concerned shall submit, for approval by the competent authority, a short-term realistic finance scheme, in accordance with Insurance Rules issued under article 18A, to restore, within three months of that observation, the eligible basic own funds, at least to the level of the Minimum Capital Requirement or to reduce its risk profile to ensure compliance with the Minimum Capital Requirement.

(3) The competent authority may also restrict or prohibit the free disposal of the assets of the undertaking concerned.

(4) Where the competent authority decides to restrict or prohibit the free disposal of assets of the undertaking concerned, it shall inform the European regulatory authorities of the host Member State or the overseas regulatory authorities, of any measures it has taken. The competent authority may request those authorities concerned to take the same measures, and shall designate the assets to be covered by such measures.