(1) An application to the Bank in the case of an insurance undertaking or a reinsurance undertaking for approval of an internal model referred to in Regulation 125 or of any subsequent major changes made to that model shall be approved by the board of directors of the undertaking.
(2) The board of directors of an insurance undertaking or reinsurance undertaking which is using an internal model shall be responsible for putting in place systems which ensure that the internal model operates properly on a continuous basis.