(1) The scheme of operations referred to in Regulation 8(2) (d) must contain particulars or proof concerning the following matters:
(a) the nature of the risks that the undertaking proposes to cover, and
(b) reinsurance arrangements that the undertaking proposes to make with ceding undertakings, and
(c) the principles that will guide the undertaking when retroceding reinsurance business to insurance undertakings or other reinsurance undertakings, and
(d) the establishment by the undertaking of a guarantee fund that complies with Schedule 2, and
(e) an estimate of the costs likely to be incurred by the undertaking in establishing administrative services, making arrangements for securing reinsurance business and obtaining the financial resources necessary to meet those costs.
(2) In respect of the period of 3 years immediately following the date of the application, the scheme of operations must also contain the following information:
(a) estimates of management expenses (other than