(1) If the Bank considers that the obligations arising out of the reinsurance contracts entered into by a reinsurance undertaking are being jeopardised, it can, by notice in writing, require the undertaking to provide it with a financial recovery plan to restore the undertaking to a sound financial position.

(2) As soon as practicable after receiving a notice under paragraph (1), the undertaking shall provide the Bank with a financial recovery plan. The plan must cover the 3 financial years of the undertaking following the date of the notice and include particulars or proof of the following:

(a) estimates of the undertaking's management expenses, and in particular its current general expenses and commissions;

(b) detailed estimates of the undertaking's income and expenditure in respect of reinsurance acceptances and reinsurance cession transactions;

(c) a forecast balance sheet for the undertaking;

(d) estimates of financial resources intended to cover the undertaking's underwriting liabilities and its required solvency margin;

(e) the undertaking's overall policy with respect to retrocessions;

(f) such other matters as the Bank considers appropriate.