AI Summary of 53H. Requirement to hold additional resources.
This section outlines the requirements for a regulatory own funds scheme and a regulatory own funds trust RAC to maintain permanent resources that meet both technical provisions and additional safety capital requirements. Specifically, these entities must hold sufficient resources to cover their technical provisions and an extra amount that acts as a safety net against any discrepancies between projected and actual financial outcomes.
Furthermore, the additional resources must meet the regulatory own funds requirement, as stipulated, and be free from foreseeable liabilities. Trustees are mandated to take all prudent measures to ensure compliance with these stipulations.
53H. Requirement to hold additional resources.
(1) A regulatory own funds scheme and a regulatory own funds trust RAC shall hold on a permanent basis—
(a) sufficient resources to satisfy the technical provisions of the regulatory own funds scheme or the technical provisions requirement of the regulatory own funds trust RAC, as appropriate, and
(b) additional resources over and above the resources referred to in paragraph (a) to serve as a safety capital to absorb any discrepancies between the anticipated and actual expenses and profits of the regulatory own funds scheme or the regulatory own funds trust RAC.
(2) The additional resources required under paragraph (b) of subsection (1) shall be the amount of the regulatory own funds requirement referred to in section 53I, free of all foreseeable liabilities.
(3) The trustees of a regulatory own funds scheme or regulatory own funds trust RAC shall take all reasonable steps to ensure that the regulatory own funds scheme or regulatory own funds trust RAC complies with the requirements of this section.