(1) If the quantity of capital allocated by the market operator under the MORCAAP to cover business risks and estimated wind-down costs is found to be deficient by the Bank, the Bank may impose one or more specific capital add-ons. Such capital add-ons will be imposed where the Bank deems that there is an omission of an identified risk or cost, an inadequate calculation of the total exposure of a risk or cost or an overestimate of the effect of mitigations in reducing a risk exposure.
(2) Any capital add-on imposed by the Bank under paragraph (1) shall be communicated to the market operator in writing and shall form part of the overall MORCAAP amount defined under Regulation 87 until such time as the Bank specifies otherwise.