5A

Transitional Plan to Reduce the Scope of the Model

5A.1

Where a firm is failing or likely to fail to satisfy the requirements in 5B.110.3, or Solvency Capital Requirement - General Provisions 5.1, the firm must be able to, upon request by the PRA, submit a realistic transitional plan to reduce the scope of its internal model, such that the internal model no longer covers:

  1. (1) the risks contained in one or more major business units; or
  2. (2) certain sub-modules of a specific risk module, or some of the business units of the firm with respect to a specific risk module, or parts of both,

in respect of which deficiencies arise.