(1) An authorised reinsurance undertaking established in the State shall establish and maintain in respect of its entire business -
(a) technical reserves as determined in accordance with the Insurance Accounts Directive and any rules in force under paragraph (2), and
(b) an adequate solvency margin that complies with Schedule 1, and
(c) a guarantee fund that complies with Schedule 2.
(2) The Bank may from time to time make rules with respect to the technical reserves that are to be established and maintained by an authorised reinsurance undertaking established in the State.
(3) A reinsurance undertaking that, without reasonable excuse, fails to comply with paragraph (1) commits an offence.