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

(2) Within one month from the observation of non-compliance with the Minimum Capital Requirement, the undertaking shall submit, for approval by the Bank, a short-term realistic finance scheme -

(a) to restore, within 3 months of that observation, the eligible basic own funds at least to the level of the Minimum Capital Requirement, or

(b) to reduce, within 3 months of that observation, its risk profile to ensure compliance with the Minimum Capital Requirement.

(3) The Bank may also exercise its powers under financial services legislation to restrict or prohibit the free disposal of the assets of the undertaking.

(4) Where it does so, the Bank shall inform the supervisory authorities of the host Member States of any measures it has taken, and it may also request those authorities to take the same measures.

(5) In those circumstances, the Bank shall designate the assets to be covered by such measures.