(1) If, because the risk profile of an insurance undertaking or reinsurance undertaking deviates significantly from the assumptions underlying the standard formula calculation, the Bank considers it inappropriate to calculate the Solvency Capital Requirement in accordance with the standard formula as set out in Regulations 116 to 124, the Bank may direct the undertaking to use an internal model to calculate the Solvency Capital Requirement, or the relevant risk modules.
(2) A direction under paragraph (1) shall state the Bank's reasons for giving it.