S.L. 403.16 Art. 12Reducing the amount of assets.

(1) Subject to sub-regulations (3) and (4), where it appears to an insurer that the amount of assets constituting any deposit is higher than the appropriate required amount, the insurer may propose to reduce the amount of assets to an amount being an amount of not less than the appropriate required amount by making an application in writing to the competent authority in that regard giving the relevant details and specifying the sum proposed to be reduced and the competent authority shall determine the application within thirty days of receiving the details required to be given under this sub-regulation; and, if it refuses the application, the competent authority shall inform the insurer in writing of the reasons for the refusal.

(2) Where the competent authority approves of an application made under sub-regulation (1), the competent authority shall direct in writing the insurer to reduce the amount of assets constituting the deposit by the sum or holding amount specified by the insurer, or any other lower sum or holding amount as determined by the competent authority, and the custodian to release from custody an amount equal to the specified sum or holding amount, or the lower sum or holding amount, as the case may be.

(3) The competent authority shall not approve of an application made under sub-regulation (1) unless it is satisfied that the remaining amount of assets constituting the deposit after the release from custody of an amount equal to the specified sum or holding amount or any other lower sum or holding amount is adequate to maintain the appropriate required amount of deposit.

(4) Nothing in sub-regulations (2) and (3) shall relieve the insurer of the obligation imposed on him by regulation 9 to maintain at all times the deposit at least at the appropriate required amount.