1. Where an ancillary own-fund item no longer fulfils the conditions under which the approval of an amount or calculation method was granted, the supervisory authority shall decide on either of the following actions:
(a) to reduce the amount of an ancillary own-fund item to a lower amount or to nil;
(b) to withdraw its approval of a calculation method.
2. The supervisory authority shall notify the insurance or reinsurance undertaking, immediately, stating the reasons, where it has made a decision in accordance with paragraph 1.