(1) By way of derogation from Regulations 148 and 153, where an insurance undertaking or reinsurance undertaking complies with the Required Solvency Margin referred to in -
(a) Part A of Annex II to the European Communities (Non-Life Insurance) Framework Regulations 1994,
(b) Part A of Annex II to the European Communities (Life Assurance) Framework Regulations 1994, or
(c) Schedule 1 to the European Communities (Reinsurance) Regulations 2006,
immediately before 1 January 2016 but does not hold sufficient eligible basic own funds to cover the Minimum Capital Requirement, the undertaking shall comply with Regulation 139 by 31 December 2016.
(2) If the undertaking fails to comply with Regulation 139 within the period set out in paragraph (1), its authorisation shall be withdrawn.