SUP App 2.14 Financial Recovery Plan

When:

1. (1)

   the FSA has required a financial recovery plan within the meaning of article 20a of the First Non-Life Directive;

2. (2)

   the FSA is of the view that policyholders' rights are threatened because the financial position of the firm is deteriorating; and

3. (3)

   the FSA decides to require the firm to hold more capital than would otherwise be required under the Handbook to ensure that the firm will be able to fulfil the required margin of solvency in the near future;

any such higher capital requirement will be based on the financial recovery plan.