1. This Annex relates to an insurance undertaking which makes an application to the Bank under sub-paragraph (g) of Article 2 of Part A of Annex II to these Regulations. References to implicit items are to amounts relating to future profits, zillmerising and hidden reserves mentioned in that sub-paragraph.

2.

(1) Implicit items shall have no value except with the consent of the Bank given by direction in writing on an application made under sub-paragraph (g) of Article 2 of Part A of Annex II to these Regulations. In pursuance of such a direction implicit items shall be valued in accordance with that sub-paragraph and this Annex to these Regulations.

(2) Article 3 of these Regulations applies to a direction under this Article.