What an insurance undertaking's guarantee fund must contain
(1) Subject to subparagraph (2) of this paragraph, an insurance undertaking's guarantee fund must -
(a) contain funds equivalent to at least one-third of the undertaking's required solvency margin, as calculated in accordance with Part A of this Annex, and
(b) comprise -
(i) the items specified in paragraphs 2(2) to (9), 3 and 4(1) of Part A of this Annex, and
(ii) with the approval of the Bank, any hidden net reserves arising out of the valuations of assets, in so far as such hidden net reserves are not, in the opinion of the Bank, of an exceptional nature.
(2) The amount of the undertaking's guarantee fund must be -
(a) except as provided by subparagraph (b) of this paragraph, not less than €2,000,000, or
(b) if all or some of the risks covered by the undertaking include all or any of classes 10 to 15 insurance business, not less than €3,000,000, or
(c) if the European Commission under the review procedure set out in
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