(1) In circumstances where, after having received approval from the Bank to use an internal model, an insurance undertaking or reinsurance undertaking ceases to comply with the requirements set out in Regulations 132 to 137, it shall, without delay, either -

(a) present to the Bank a plan to restore compliance within a reasonable period of time, or

(b) demonstrate that the effect of non-compliance is immaterial.

(2) Where the undertaking fails to implement the plan referred to in paragraph (1)(a) the Bank may require it to revert to calculating the Solvency Capital Requirement in accordance with the standard formula as set out in Regulations 116 to 124.