(1) An insurance undertaking or reinsurance undertaking shall immediately inform the Bank as soon as it observes that the Solvency Capital Requirement is no longer being complied with or where there is a risk of non-compliance in the following 3 months.

(2) Within 2 months from the observation of non-compliance with the Solvency Capital Requirement an undertaking shall submit a realistic recovery plan for approval by the Bank.

(3) The Bank shall require the undertaking to take the necessary measures to achieve, within 6 months from the observation of the non-compliance with the Solvency Capital Requirement -

(a) the re-establishment of the level of eligible own funds covering the Solvency Capital Requirement, or

(b) the reduction of its risk profile to ensure compliance with the Solvency Capital Requirement.

(4) The Bank may, if it considers it appropriate, extend that period of 6 months by 3 months.