(1) Without prejudice to Regulation 234, the Solvency Capital Requirement of a subsidiary undertaking approved under Regulation 240 shall be calculated as set out in this Regulation.

(2) Where -

(a) the Solvency Capital Requirement of the subsidiary undertaking is calculated on the basis of an internal model approved at group level in accordance with Regulation 234,

(b) the Bank, as the supervisory authority which authorised the subsidiary undertaking considers that its risk profile deviates significantly from that internal model, and

(c) that undertaking does not properly address the concerns of the Bank,

the Bank may, in the cases referred to in Regulation 39, propose to set a capital add-on to the Solvency Capital Requirement of the subsidiary undertaking resulting from the application of that model or, in exceptional circumstances where such capital add-on would not be appropriate, require the undertaking to calculate its Solvency Capital Requirement on the basis of the standard formula.