Amendment to article 72 (determining whether a relevant shortfall has occurred)3

1

Article 72 is amended as follows.

2

For paragraph (3), substitute—

3

A shortfall in relation to a relevant period is a relevant shortfall if it is equal to, or in excess of, the mutualisation threshold for that period.

3

After paragraph (3), insert—

4

The mutualisation threshold for a relevant period is determined as 1% of A x B, rounded to the nearest £100,000 with £50,000 being rounded upwards, where—

i

A is the total obligation for the relevant period determined under article 12;

ii

B is the buy-out price for the relevant period referred to in article 67(4).