Minimum guarantee fund: long term business
6.—(1) In the financial year during which a society is first authorised under section 32 of the 1992 Act to carry on long term business, the minimum guarantee fund shall be the amount in column 2 of the table below, which corresponds to the society’s annual contribution income in respect of that business in the last preceding financial year, as shown in column 1 of the table
| Contribution Income (in ECU) | Minimum Guarantee Fund (in ECU) |
|---|---|
| 1,000,000 or less | 100,000 |
| 1,000,001-1,500,000 | 200,000 |
| 1,500,001-2,000,000 | 300,000 |
| 2,000,001-2,500,000 | 400,000 |
| 2,500,001-3,000,000 | 500,000 |
| 3,000,001 or more | 600,000 |
but where a society had no annual contribution income in respect of long term business in the last preceding financial year or has not been in existence long enough to have a preceding financial year, the minimum guarantee fund shall be an amount of 100,000 ECU.
(2) In any subsequent financial year during which a society continues to be authorised to carry on long term business, the minimum guarantee fund shall be the greater of either—
(a)the amount in column 2 of the table in paragraph (1) above that corresponds to the society’s annual contribution income in respect of long term business in the last preceding financial year; or
(b)the amount of the minimum guarantee fund required to be maintained by the society in the last preceding financial year,
providing that if the amount referred to in subparagraphs (a) and (b) above is the same, the minimum guarantee fund shall be that amount.
(3) Where a society obtains authorisation under section 32 of the 1992 Act to carry on long term business—
(a)of a class additional to that in respect of which it is already authorised; or
(b)in a part of the United Kingdom additional to that in respect of which it is already authorised,
a minimum guarantee fund of 600,000 ECU shall be maintained by that society for the whole of its long term business (that is to say, not only for the additional business carried on but also for the business previously carried on).