3

Margin of Solvency Below Required Margin of Solvency

3.1

This Chapter only applies to a non-directive friendly society (other than a flat rate benefits business friendly society).

3.2

If a firm’s margin of solvency no longer equals to or exceeds its required margin of solvency, it must, within 28 days of becoming aware of this event, submit to the PRA a plan for the restoration of a sound financial position, including:

  1. (1) a scheme of operations; and
  2. (2) an explanation of how, if at all, and by when, it expects its margin of solvency to be adequately restored to the required margin of solvency.