(1) For the purposes of determining whether the activities of a group mainly occur in the financial sector, the ratio of the balance sheet total of the regulated and non-regulated financial sector entities within the group to the balance sheet total of the group as a whole must exceed 40 per cent.

(2) For the purpose of Regulation 3(3) (e), an activity is to be regarded as significant for a financial sector if the amount calculated in accordance with the formula specified in paragraph (3) exceeds 10 per cent.

(3) The formula referred to in paragraph (2) is as follows:

where -

A represents the amount to be calculated, and

R¹ represents the ratio of the balance sheet total of the sector to the balance sheet total of the financial sector entities within the group, and

R² represents the ratio of the solvency requirements of the same financial sector to the total solvency requirements of the financial sector entities within the group.